DoD's $137.5M IDIQ for Engineering Services Awarded to Lockheed Martin Amidst Full and Open Competition
Contract Overview
Contract Amount: $137,557,244 ($137.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-02-15
End Date: 2029-02-14
Contract Duration: 1,826 days
Daily Burn Rate: $75.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: IDIQ ENGINEERING AND TECHNICAL SERVICES
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $137.6 million to LOCKHEED MARTIN CORPORATION for work described as: IDIQ ENGINEERING AND TECHNICAL SERVICES Key points: 1. Significant contract value for engineering and technical services. 2. Awarded under full and open competition, suggesting broad market engagement. 3. Potential risks associated with cost-plus contracts and long duration. 4. Focus on search, detection, and navigation systems aligns with defense priorities.
Value Assessment
Rating: good
The contract is an IDIQ with delivery orders, making direct pricing comparisons difficult. However, the total award value of $137.5M over five years suggests a substantial investment in specialized engineering capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: Full and open competition aims to leverage market forces to achieve cost efficiencies, ultimately benefiting taxpayers by securing services at competitive rates.
Public Impact
Enhances critical defense capabilities in search, detection, and navigation. Supports advanced technological development within the Department of the Navy. Long-term contract provides stability for engineering and technical support services.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Cost-plus contracts can lead to cost overruns if not managed tightly.
- Long contract duration (5 years) may not adapt quickly to evolving technological needs.
- No small business participation noted, potentially missing out on specialized SMB innovation.
Positive Signals
- Awarded through full and open competition, maximizing potential for best value.
- Focus on critical navigation and detection systems is strategically important.
- Experienced contractor (Lockheed Martin) likely brings significant expertise.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on advanced system manufacturing and engineering services. The benchmark for similar contracts varies widely based on complexity and scope, but $137.5M over five years for specialized engineering is a significant investment.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). This suggests that the scope and requirements of the engineering and technical services were likely beyond the typical capacity or specialization of small businesses in this domain.
Oversight & Accountability
The IDIQ structure with delivery orders allows for flexibility, but requires robust oversight to ensure fair pricing and adherence to contract terms across all orders. The Department of the Navy's contracting office is responsible for monitoring performance and costs.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus contract type risk
- Long contract duration
- No small business participation
- Potential for scope creep without strict oversight
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $137.6 million to LOCKHEED MARTIN CORPORATION. IDIQ ENGINEERING AND TECHNICAL SERVICES
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $137.6 million.
What is the period of performance?
Start: 2024-02-15. End: 2029-02-14.
What is the estimated average annual cost per delivery order, and how does it compare to industry benchmarks for similar engineering services?
Without specific delivery order data, calculating an average annual cost per order is not possible. However, the total contract value of $137.5M over five years averages to $27.5M annually. This figure needs to be benchmarked against the complexity and specific technical requirements of each order to assess value effectively against industry standards for specialized defense engineering.
What are the specific performance metrics and risk mitigation strategies in place for this cost-plus incentive fee contract to control potential cost overruns?
The contract type is Cost Plus Incentive Fee (CPIF), which incentivizes both the contractor and the government to control costs. Specific performance metrics and risk mitigation strategies would be detailed within the contract's Statement of Work and associated clauses. These typically include detailed cost reporting, earned value management, and defined incentive targets tied to cost, schedule, and performance objectives.
How effectively does this contract leverage Lockheed Martin's specific technological innovations in search, detection, and navigation systems to advance DoD capabilities?
The effectiveness hinges on the specific delivery orders placed against this IDIQ. Lockheed Martin is a leader in these areas, suggesting a strong potential for leveraging advanced technologies. The government's tasking and oversight will be crucial in ensuring that the services procured directly contribute to advancing DoD capabilities and integrating cutting-edge solutions.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002418R6200
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $179,712,917
Exercised Options: $144,845,308
Current Obligation: $137,557,244
Actual Outlays: $82,246
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $7,764,419
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002419D6200
IDV Type: IDC
Timeline
Start Date: 2024-02-15
Current End Date: 2029-02-14
Potential End Date: 2029-02-14 00:00:00
Last Modified: 2025-12-11
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