DoD Awards $34.6M to Lockheed Martin for MUOS Space Segment Sustainment
Contract Overview
Contract Amount: $34,644,125 ($34.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2020-12-01
End Date: 2024-11-30
Contract Duration: 1,460 days
Daily Burn Rate: $23.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LABOR - MUOS SPACE SEGMENT SUSTAINMENT
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Defense obligated $34.6 million to LOCKHEED MARTIN CORP for work described as: LABOR - MUOS SPACE SEGMENT SUSTAINMENT Key points: 1. Significant contract awarded to a major defense contractor. 2. Focus on space segment sustainment indicates long-term program needs. 3. Potential for cost overruns in complex space systems. 4. Engineering services sector is critical for national security infrastructure.
Value Assessment
Rating: fair
The award amount of $34.6M for engineering services appears reasonable for sustaining a complex space segment. However, without specific task details or historical cost data for MUOS sustainment, a precise value assessment is difficult. Benchmarking against similar large-scale space system sustainment contracts would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the MUOS space segment and the incumbent contractor's expertise. The lack of competition may limit price discovery and potentially lead to higher costs than a competitive process.
Taxpayer Impact: Taxpayer funds are being used for a critical national security program. While sole-source awards can be necessary, they warrant close oversight to ensure fair pricing and efficient use of resources.
Public Impact
Ensures continued operation of the Mobile User Objective System (MUOS), vital for secure communications. Supports advanced space technology and engineering expertise within the defense industrial base. Impacts military personnel relying on reliable satellite communication for global operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost creep in long-term sustainment
Positive Signals
- Supports critical national security communications
- Award to established prime contractor
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting space-based communication systems. Spending in this area is crucial for maintaining national security infrastructure and technological superiority. Benchmarks for similar large-scale, sole-source sustainment contracts for complex defense systems are often high due to specialized requirements.
Small Business Impact
This contract was awarded to Lockheed Martin Corp, a large prime contractor. There is no indication of small business participation in this specific award notice, suggesting that subcontracting opportunities for small businesses may be limited or not detailed here.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Air Force to ensure cost reasonableness and performance. Audits and regular performance reviews are critical to maintaining accountability for taxpayer funds.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost growth in long-term sustainment.
- Complexity of space systems increases inherent risk.
- Dependence on a single contractor for critical infrastructure.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to LOCKHEED MARTIN CORP. LABOR - MUOS SPACE SEGMENT SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $34.6 million.
What is the period of performance?
Start: 2020-12-01. End: 2024-11-30.
What is the projected total lifecycle cost for MUOS space segment sustainment, and how does this award fit into that budget?
The projected total lifecycle cost for MUOS space segment sustainment is not publicly detailed in this award notice. This $34.6M delivery order represents a portion of the ongoing sustainment efforts. A comprehensive lifecycle cost estimate would encompass all future maintenance, upgrades, and operational support activities over the system's lifespan, requiring further analysis beyond this single contract.
What are the specific risks associated with the lack of competition for this sustainment contract?
The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Lockheed Martin may have less incentive to offer the most cost-effective solutions. Additionally, without competition, there's a reduced opportunity to introduce innovative approaches or technologies from other vendors, potentially limiting long-term system efficiency and modernization.
How effective is the MUOS system in meeting its intended communication objectives, and does this sustainment contract adequately support that effectiveness?
The MUOS system is designed to provide global, high-bandwidth, secure communications for mobile warfighters. Its effectiveness is crucial for tactical operations and command and control. This sustainment contract is intended to ensure the continued operational availability and reliability of the space segment, which is fundamental to the system's overall effectiveness. Successful execution of this contract directly supports the MUOS's mission.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003918R0013
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sikorsky Support Services Inc
Address: 1111 LOCKHEED MARTIN WAY, SUNNYVALE, CA, 94089
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,644,125
Exercised Options: $34,644,125
Current Obligation: $34,644,125
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $8,041,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003920D0022
IDV Type: IDC
Timeline
Start Date: 2020-12-01
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2024-04-05
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