Navy Awards $835M Engineering Services Contract to Lockheed Martin for Electronics and Communication
Contract Overview
Contract Amount: $155,071,487 ($155.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 1997-06-18
End Date: 2009-11-09
Contract Duration: 4,527 days
Daily Burn Rate: $34.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: 199710!1700!8440!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002497C5171 !A!*!* !19970618!20060228!834951691!834951691!834951691!N!02769!LOCKHEED MARTIN CORPORATION !6801 ROCKLEDGE DR !BETHESDA !MD!20817!48270!023!34!MORRISTOWN !MIDDLESEX !NEW JERSEY!0001!+000085802119!Y!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!D !N!R!1!001!N!1A!C!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $155.1 million to LOCKHEED MARTIN CORPORATION for work described as: 199710!1700!8440!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002497C5171 !A!*!* !19970618!20060228!834951691!834951691!834951691!N!02769!LOCKHEED MARTIN CORPORATION !6801 ROCKLEDGE DR !BETHESDA !MD!20817!48270!023!34!MORRISTOWN !MIDDLE… Key points: 1. The contract, valued at $834,951,691, was awarded to Lockheed Martin Corporation. 2. The primary service category is 'Engineering Services' (NAICS 541330), with a focus on 'Electronics and Communication'. 3. The contract was not competed, raising potential concerns about price discovery and value for taxpayer money. 4. The duration of the contract was 4527 days, spanning from June 1997 to November 2009.
Value Assessment
Rating: questionable
The contract value of $834,951,691 is substantial. Without comparable contracts for similar engineering and technical services in electronics and communication, it is difficult to assess if this price represents good value. The 'Cost Plus Award Fee' (CPAF) structure can lead to higher costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for the government compared to a competitive procurement. The rationale for not competing is not detailed.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds, as a competitive process could have potentially secured better pricing.
Public Impact
Taxpayers may have paid a premium due to the lack of competition. The long contract duration suggests a critical, ongoing need for these specialized engineering services. The focus on electronics and communication in defense systems highlights the importance of this contract to national security.
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
- Services related to critical defense systems
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on electronics and communication. Defense contracts in this area are often complex and require specialized expertise. Benchmarks for such services can vary widely based on scope and technology.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made to a large corporation, Lockheed Martin.
Oversight & Accountability
The 'Cost Plus Award Fee' structure requires robust oversight to ensure contractor performance and control costs. The long duration of the contract necessitates continuous monitoring by the Naval Sea Systems Command to ensure accountability and value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns with CPAF
- Long contract duration may indicate inflexibility
- Limited transparency on award justification
Tags
engineering-services, department-of-defense, nj, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $155.1 million to LOCKHEED MARTIN CORPORATION. 199710!1700!8440!BZ005!NAVAL SEA SYSTEMS COMMAND !N0002497C5171 !A!*!* !19970618!20060228!834951691!834951691!834951691!N!02769!LOCKHEED MARTIN CORPORATION !6801 ROCKLEDGE DR !BETHESDA !MD!20817!48270!023!34!MORRISTOWN !MIDDLESEX !NEW JERSEY!0001!+000085802119!Y!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!D !N!R!1!0
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 $155.1 million.
What is the period of performance?
Start: 1997-06-18. End: 2009-11-09.
What was the justification for awarding this contract on a sole-source basis rather than through full and open competition?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to fully assess the necessity of this procurement approach.
How did the 'Award Fee' component of the contract influence Lockheed Martin's performance and the final cost to the government?
The 'Award Fee' component is designed to incentivize contractor performance by providing additional compensation for exceeding baseline requirements. The effectiveness of this mechanism depends on clearly defined performance metrics and objective evaluation criteria. Without access to the award fee determination and justification, it's difficult to assess its impact on performance and cost.
What specific 'Electronics and Communication' services were provided under this contract, and how did they contribute to the Naval Sea Systems Command's mission?
The data indicates the service category as 'Electronics and Communication' but does not detail the specific tasks performed. These services likely encompassed a range of activities such as system design, integration, testing, maintenance, and upgrades for naval electronic and communication systems, crucial for operational readiness and command and control.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 03
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1997-06-18
Current End Date: 2009-11-09
Potential End Date: 2009-11-09 00:00:00
Last Modified: 2013-07-25
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