Naval Sea Systems Command Awards $826M Contract to Lockheed Martin for Program Management/Support Services
Contract Overview
Contract Amount: $14,970,163 ($15.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 1997-01-17
End Date: 2006-09-30
Contract Duration: 3,543 days
Daily Burn Rate: $4.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 199704!1700!1872!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002497C6368 !A!*!* !19970117!20010130!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !0001!+000006322000!N!Y!000019027799!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !2AMF!L-188 LOCKHEED ELECTRA COMM !3812!3!*!*!*!B!B!*!D !U!U!1!001!N!1G!A!Y!D!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.0 million to LOCKHEED MARTIN CORPORATION for work described as: 199704!1700!1872!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002497C6368 !A!*!* !19970117!20010130!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASS… Key points: 1. The contract, valued at $826,412,801, was awarded to Lockheed Martin Corporation. 2. The primary service category is Program Management/Support Services, with a specific 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 is substantial, spanning from January 1997 to January 2001, with an extended period to September 2006. 5. The awarding agency is the Naval Sea Systems Command, part of the Department of Defense.
Value Assessment
Rating: questionable
The contract value of $826.4 million for program management and support services is significant. Without specific benchmarks for similar services within the defense sector, it's difficult to definitively assess its pricing, especially given the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a limited competition approach. This method can lead to higher prices and reduced value for taxpayers if not justified by unique circumstances or sole-source necessity.
Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about potential overspending and whether the government secured the best possible price for these critical support services.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract could mean sustained, potentially inflated, costs over many years. The specific nature of 'Program Management/Support Services' for naval systems suggests a critical function, making oversight crucial. The award to a single large corporation highlights the consolidation of defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
- Cost-plus contract type
Positive Signals
- Award to a major defense contractor
- Specific service category identified
Sector Analysis
This contract falls within the Defense sector, specifically for program management and support services related to naval electronics and communication systems. Spending in this area is critical for maintaining military readiness but is also susceptible to cost overruns, especially in non-competed scenarios.
Small Business Impact
The data indicates the award went to Lockheed Martin Corporation, a large prime contractor. There is no information provided regarding subcontracting opportunities for small businesses within this specific contract award.
Oversight & Accountability
The Naval Sea Systems Command is responsible for this award. Oversight is crucial given the contract's value and lack of competition to ensure effective service delivery and prevent cost inefficiencies.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may result in inflated costs.
- Contract type (Cost-Plus Fixed Fee) shifts cost risk to the government.
- Long contract duration increases potential for cost creep.
- Limited transparency into specific service requirements and performance metrics.
- Potential for vendor lock-in due to specialized services.
Tags
department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to LOCKHEED MARTIN CORPORATION. 199704!1700!1872!BZ006!NAVAL SEA SYSTEMS COMMAND !N0002497C6368 !A!*!* !19970117!20010130!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !0001!+000006322000!N!Y!000019027799!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !A7 !ELECTRONICS AND COMMUNICATION !2AMF!L-188 LOCKHEED ELECTRA COMM !3812!3!*!*!*!B!B!*!D !U!U!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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.0 million.
What is the period of performance?
Start: 1997-01-17. End: 2006-09-30.
What specific justification was provided for not competing this significant contract, and were alternative solutions explored?
The provided data states the contract was 'NOT COMPETED.' Without further documentation, the specific justification remains unclear. Typically, non-competition is reserved for situations where only one source can fulfill the requirement due to technical, security, or other unique factors. Exploring alternatives is a standard part of procurement, but the extent to which this occurred before opting for non-competition is not detailed here.
How does the cost-plus fixed fee structure impact the contractor's incentive to control costs compared to other contract types?
A Cost-Plus Fixed Fee (CPFF) contract provides reimbursement for allowable costs plus a fixed fee representing profit. While the fee is fixed, the contractor is incentivized to control costs to maximize their profit margin, as the government pays the actual costs incurred. However, this structure can still lead to higher costs than fixed-price contracts if cost overruns occur, as the government bears the risk.
What performance metrics or deliverables were established to ensure the effectiveness of the program management and support services provided?
The provided data does not detail specific performance metrics or deliverables for this contract. Effective oversight would require clearly defined requirements, milestones, and quality standards to measure the contractor's performance and ensure the program management and support services met the Navy's needs.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1997-01-17
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2023-06-03
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