DoD Awards Lockheed Martin $171M for Engineering and Technical Services, Ending Jan 2027
Contract Overview
Contract Amount: $17,126,845 ($17.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-27
End Date: 2027-01-26
Contract Duration: 729 days
Daily Burn Rate: $23.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED 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 $17.1 million to LOCKHEED MARTIN CORPORATION for work described as: ENGINEERING AND TECHNICAL SERVICES Key points: 1. Significant contract value of $171.27 million awarded. 2. Lockheed Martin Corporation is the sole awardee. 3. Contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing NAICS code. 4. High value suggests critical, specialized services are required.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the fixed fee component provides some cost control. Benchmarking against similar large-scale engineering service contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential engineering and technical services.
Public Impact
Supports critical defense systems for the Department of the Navy. Ensures continued operation and advancement of navigation and guidance systems. Impacts the aerospace and defense technology sector through a major award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Sole awardee to Lockheed Martin may warrant review of competition effectiveness.
Positive Signals
- Awarded under full and open competition.
- Long-term contract duration (729 days) provides stability for critical services.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on advanced system manufacturing and support. Spending benchmarks for similar engineering services contracts are typically in the millions to billions, depending on scope.
Small Business Impact
The data indicates this is a large contract awarded to a major corporation, Lockheed Martin. There is no explicit mention of small business participation, which should be assessed to ensure opportunities are provided where feasible.
Oversight & Accountability
The Department of Defense's oversight mechanisms will be crucial in managing the Cost Plus Fixed Fee structure and ensuring the contractor meets all performance requirements within the specified budget and timeline.
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 Fixed Fee contract type.
- Potential for cost overruns if not managed diligently.
- Lack of explicit small business participation noted.
- Sole awardee to a large corporation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.1 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 $17.1 million.
What is the period of performance?
Start: 2025-01-27. End: 2027-01-26.
What specific engineering and technical services are included in this $171 million contract, and how do they align with current and future Department of the Navy operational needs?
The contract covers services related to Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. These services are vital for maintaining and advancing the operational capabilities of naval platforms, ensuring readiness and technological superiority in critical areas like maritime surveillance, target acquisition, and flight control systems.
Given the Cost Plus Fixed Fee structure, what are the primary cost drivers, and what oversight mechanisms are in place to mitigate potential cost overruns?
Primary cost drivers likely include labor (highly skilled engineers and technicians), materials, and specialized equipment. Oversight mechanisms typically involve detailed cost reporting, regular performance reviews, audits, and adherence to established fee structures. The fixed fee component provides a baseline incentive for efficiency.
How will the performance of Lockheed Martin on this contract be measured to ensure effective delivery of critical navigation and guidance system support?
Performance will be measured against specific contract requirements, including technical specifications, delivery schedules, quality standards, and cost control. Key performance indicators (KPIs) will likely be established, with regular progress reports and potential for award fees or penalties based on achieved outcomes.
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: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002423R5202
Pricing Type: COST PLUS FIXED FEE (U)
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: $17,126,845
Exercised Options: $17,126,845
Current Obligation: $17,126,845
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0002425D5202
IDV Type: IDC
Timeline
Start Date: 2025-01-27
Current End Date: 2027-01-26
Potential End Date: 2027-01-26 00:00:00
Last Modified: 2025-09-09
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