DoD Awards $54.4M Engineering Services Contract to Lockheed Martin, Not Competed
Contract Overview
Contract Amount: $54,392,055 ($54.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-17
End Date: 2027-12-31
Contract Duration: 1,109 days
Daily Burn Rate: $49.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SERVICES
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $54.4 million to LOCKHEED MARTIN CORPORATION for work described as: ENGINEERING AND TECHNICAL SERVICES Key points: 1. Significant award value of $54.4 million for engineering services. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Contract duration extends to late 2027, indicating long-term need. 4. The 'VA' status suggests potential for veteran-owned business involvement, though not explicitly stated.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed effectively. Benchmarking is difficult without specific performance metrics and comparable contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher price than could be achieved through a competitive bidding process, impacting taxpayer value.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract suggests ongoing reliance on Lockheed Martin's services. Potential for reduced innovation and efficiency without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee contract type
- Long contract duration
Positive Signals
- Award to a major defense contractor, potentially ensuring specialized expertise.
Sector Analysis
This contract falls under Engineering Services, a critical sector for defense operations. Spending benchmarks for similar services can vary widely based on complexity and scope, but a $54.4M award is substantial.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no explicit information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'VA' status and the 'DEFINITIVE CONTRACT' type suggest established oversight mechanisms are in place. However, the lack of competition warrants close monitoring of cost and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding may lead to inflated costs.
- CPAF contract type can incentivize cost overruns if not managed stringently.
- Long contract duration (over 3 years) increases exposure to potential performance issues.
- No indication of small business subcontracting opportunities.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.4 million to LOCKHEED MARTIN CORPORATION. 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 $54.4 million.
What is the period of performance?
Start: 2024-12-17. End: 2027-12-31.
What specific engineering services are being procured, and why was a sole-source award deemed necessary?
The specific engineering services are categorized under NAICS code 541330 (Engineering Services). A sole-source award is typically justified when only one responsible source can provide the required services, often due to unique capabilities, proprietary data, or urgent needs. Further justification from the Department of the Navy would be required to fully understand the rationale.
What are the key performance indicators (KPIs) and award fee criteria for this contract?
The contract is a Cost Plus Award Fee (CPAF) type, implying that Lockheed Martin's compensation includes a base fee plus an award fee contingent on meeting specific performance objectives. Detailed KPIs and award fee criteria are usually outlined in the contract's performance work statement (PWS) and are crucial for assessing value and contractor performance.
How does the $49.05 million benchmark (br) compare to similar sole-source engineering contracts awarded by the Department of the Navy?
The benchmark of $49.05 million (br) is close to the total award amount of $54.39 million. Without access to a database of comparable sole-source contracts, it's difficult to definitively assess if this represents fair and reasonable pricing. However, the proximity suggests the government may have used this benchmark in its price negotiation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002424R6108
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
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: $223,367,787
Exercised Options: $135,190,667
Current Obligation: $54,392,055
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $520,781
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-12-17
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-10
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