DoD awards $82.6M for Space and Naval Warfare Systems Engineering Services to Lockheed Martin
Contract Overview
Contract Amount: $19,192,351 ($19.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 1996-02-19
End Date: 2002-09-01
Contract Duration: 2,386 days
Daily Burn Rate: $8.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: 199708!1700!0273!D0222!SPACE AND NAVAL WARFARE SYSTEMS !N0003996C0032 !A!*!P00010 !19970219!19970930!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !0001!+000000209789!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!S!C!B!A!*!D !N!R!1!001!N!1A!Z!Y!Z!* !* !N!C!*!Z!Z!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to LOCKHEED MARTIN CORPORATION for work described as: 199708!1700!0273!D0222!SPACE AND NAVAL WARFARE SYSTEMS !N0003996C0032 !A!*!P00010 !19970219!19970930!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASS… Key points: 1. Contract awarded for critical Systems Engineering Services in the Electronics and Communication sector. 2. Sole-source award to Lockheed Martin Corporation, raising questions about competition and price discovery. 3. Significant contract duration of 2386 days (approx. 6.5 years) suggests long-term program support. 4. High contract value of $82.6M warrants scrutiny for cost-effectiveness and value for taxpayer money.
Value Assessment
Rating: questionable
The contract value of $82.6M for Systems Engineering Services is substantial. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this pricing is competitive or represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: Sole-source awards can result in higher prices than competitively bid contracts, potentially leading to less efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long contract duration could lock the government into a potentially suboptimal solution. Dependence on a single contractor for critical systems engineering could pose a risk. Lack of transparency in sole-source awards hinders public understanding of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- High contract value
Positive Signals
- Established contractor with likely relevant expertise
- Potential for stable, long-term program support
Sector Analysis
This contract falls within the Electronics and Communication sector, specifically for Systems Engineering Services. Defense spending in this area is crucial for maintaining technological superiority, but often involves complex, high-value contracts.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this sole-source contract. It is unlikely that small businesses were significantly involved in the prime contract.
Oversight & Accountability
The sole-source nature of this award suggests that justification for bypassing full and open competition was provided. However, further review of that justification and ongoing performance monitoring would be necessary to assess oversight effectiveness.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Long contract duration may not reflect current technological needs.
- High contract value warrants detailed cost-benefit analysis.
- Lack of small business participation noted.
- Potential for vendor lock-in.
Tags
department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to LOCKHEED MARTIN CORPORATION. 199708!1700!0273!D0222!SPACE AND NAVAL WARFARE SYSTEMS !N0003996C0032 !A!*!P00010 !19970219!19970930!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !0001!+000000209789!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!S!C!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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $19.2 million.
What is the period of performance?
Start: 1996-02-19. End: 2002-09-01.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented and approved?
Sole-source awards typically require a strong justification, such as unique capabilities, urgent need, or lack of viable alternatives. Without access to the contract file, it's impossible to verify the specific justification used for this Lockheed Martin contract. Adequate documentation and approval are critical oversight steps to ensure taxpayer funds are used responsibly, even when competition is not feasible.
How does the cost of these Systems Engineering Services compare to industry benchmarks or previous contracts for similar work, given the sole-source nature?
Assessing the cost-effectiveness of a sole-source contract is challenging. Without competitive bids, there's no direct market comparison. Analysis would require benchmarking against similar, albeit potentially competitively won, contracts for systems engineering services, considering factors like scope, complexity, and duration. Any significant deviation from benchmarks would warrant further investigation into pricing.
What are the potential risks associated with a long-term, sole-source contract for critical systems engineering, and what mitigation strategies are in place?
Risks include vendor lock-in, potential for cost overruns without competitive pressure, and reduced innovation. Mitigation strategies might involve strict performance metrics, phased contract reviews, and contingency planning for contractor failure or performance issues. The government should also actively seek opportunities to introduce competition in future contract phases if possible.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1996-02-19
Current End Date: 2002-09-01
Potential End Date: 2002-09-01 00:00:00
Last Modified: 2021-07-06
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)