DoD's $15.9M Tactical Systems Integration Contract Awarded to Lockheed Martin Raises Questions on Competition
Contract Overview
Contract Amount: $15,948,898 ($15.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-06-18
End Date: 2022-09-30
Contract Duration: 469 days
Daily Burn Rate: $34.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ENGINEERING AND TECHNICAL SERVICES FOR TACTICAL SYSTEMS INTEGRATION WITH SYNTHETIC SIGNATURE GENERATION (SSG) FOR TRAINING, TESTING, AND ANALYSIS SYSTEMS AS PART OF THE SIGNATURES TRAINING AND DECISIONS SYSTEMS PROGRAM. LOE LABOR.
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to LOCKHEED MARTIN CORPORATION for work described as: ENGINEERING AND TECHNICAL SERVICES FOR TACTICAL SYSTEMS INTEGRATION WITH SYNTHETIC SIGNATURE GENERATION (SSG) FOR TRAINING, TESTING, AND ANALYSIS SYSTEMS AS PART OF THE SIGNATURES TRAINING AND DECISIONS SYSTEMS PROGRAM. LOE LABOR. Key points: 1. The contract focuses on engineering and technical services for tactical systems integration, specifically synthetic signature generation for training and testing. 2. Awarded to Lockheed Martin Corporation by the Department of the Navy, this is a delivery order under a larger program. 3. The primary risk lies in the lack of competition, as the contract was 'NOT COMPETED'. 4. The sector is professional, scientific, and technical services, with a specific focus on defense-related IT and engineering.
Value Assessment
Rating: questionable
The contract's value of $15.9M for engineering and technical services is difficult to benchmark without more specific details on the scope of work and deliverables. However, given the 'NOT COMPETED' status, a thorough price reasonableness assessment is crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis ('NOT COMPETED'), indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $15.9M contract raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The reliance on a single contractor for critical tactical systems integration could pose a long-term dependency risk. The effectiveness of training and testing systems may be impacted if alternative, potentially more innovative, solutions were not considered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated costs
Positive Signals
- Supports critical defense training and testing capabilities
- Awarded to a known defense contractor
Sector Analysis
This contract falls within the 'All Other Professional, Scientific, and Technical Services' sector, specifically supporting defense applications. Benchmarking spending in this niche requires comparison to similar sole-source or limited-competition contracts for specialized engineering and integration services within the DoD.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific delivery order, suggesting limited opportunities for small businesses in this particular procurement.
Oversight & Accountability
The 'NOT COMPETED' status warrants close oversight to ensure the pricing is fair and reasonable and that the services delivered meet the government's needs effectively. Accountability for the justification of the sole-source award is essential.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Potential for cost overruns due to absence of competition.
- Dependency on a single large contractor for critical systems.
- Limited visibility into the specific technical capabilities and innovation brought by the contractor.
Tags
all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to LOCKHEED MARTIN CORPORATION. ENGINEERING AND TECHNICAL SERVICES FOR TACTICAL SYSTEMS INTEGRATION WITH SYNTHETIC SIGNATURE GENERATION (SSG) FOR TRAINING, TESTING, AND ANALYSIS SYSTEMS AS PART OF THE SIGNATURES TRAINING AND DECISIONS SYSTEMS PROGRAM. LOE LABOR.
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 $15.9 million.
What is the period of performance?
Start: 2021-06-18. End: 2022-09-30.
What was the justification for awarding this contract on a sole-source basis, and were any market research efforts conducted to explore competitive options?
The justification for a sole-source award is critical for ensuring taxpayer value. Agencies must demonstrate that only one responsible source can satisfy the agency's needs. Without this justification, the award raises concerns about potential missed opportunities for better pricing and innovation that competition typically provides. Market research is a mandatory step to identify potential sources, even if ultimately only one is deemed capable.
How does the per-unit cost or overall pricing of this contract compare to similar tactical systems integration projects, especially those awarded competitively?
Comparing the pricing of this sole-source contract to competitively awarded contracts for similar services is essential for assessing value. If this contract's pricing is significantly higher, it suggests that the lack of competition may have led to inflated costs. A detailed cost analysis, including labor rates and overhead, should be performed against industry benchmarks and historical data for comparable projects.
What are the specific performance metrics and expected outcomes for the synthetic signature generation systems, and how will their effectiveness be measured?
Defining clear performance metrics and measurable outcomes for the synthetic signature generation systems is crucial for evaluating the effectiveness of this $15.9M investment. Without specific targets for accuracy, reliability, and utility in training, testing, and analysis, it is difficult to determine if the government is receiving adequate value. Robust testing and validation protocols should be in place post-delivery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016720R0001
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: $19,252,865
Exercised Options: $19,252,865
Current Obligation: $15,948,898
Subaward Activity
Number of Subawards: 45
Total Subaward Amount: $11,740,049
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0016721D0007
IDV Type: IDC
Timeline
Start Date: 2021-06-18
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2025-09-23
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