DoD Awards $8.8M Tactical Integration Services Task Order to Lockheed Martin
Contract Overview
Contract Amount: $8,798,000 ($8.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-12
End Date: 2026-09-30
Contract Duration: 567 days
Daily Burn Rate: $15.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TASK ORDER AWARD FOR TACTICAL INTEGRATION SERVICES
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to LOCKHEED MARTIN CORPORATION for work described as: TASK ORDER AWARD FOR TACTICAL INTEGRATION SERVICES Key points: 1. Significant award to a major defense contractor. 2. Task order awarded under a non-competitive process. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar 'All Other Professional, Scientific, and Technical Services' contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had competed.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition and the Cost Plus Fixed Fee contract structure.
Public Impact
Military readiness and technological advancement may be impacted by these integration services. The use of a sole-source award raises questions about efficient use of taxpayer funds. Dependence on a single contractor for critical tactical integration could pose a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract
- Lack of competition
Positive Signals
- Award to established contractor
- Supports Department of the Navy needs
Sector Analysis
This award falls under the 'All Other Professional, Scientific, and Technical Services' category, which is broad. Spending in this sector can vary widely depending on the specific services procured, but typically involves specialized expertise.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Navy awarded this task order. Oversight will be crucial to ensure the Cost Plus Fixed Fee contract is managed effectively and that costs are reasonable.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Limited transparency into specific services procured.
- Potential for contractor lock-in due to specialized integration services.
Tags
all-other-professional-scientific-and-te, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to LOCKHEED MARTIN CORPORATION. TASK ORDER AWARD FOR TACTICAL INTEGRATION SERVICES
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 $8.8 million.
What is the period of performance?
Start: 2025-03-12. End: 2026-09-30.
What specific tactical integration services are being procured, and how do they align with current military needs?
The specific tactical integration services are not detailed in the provided data. However, they are procured by the Department of the Navy, suggesting a focus on enhancing naval operational capabilities. Understanding the precise nature of these services is crucial for assessing their alignment with evolving military requirements and technological advancements.
What is the justification for awarding this task order on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided. Typically, this occurs when only one source can meet the requirement. Without competition, the Department of Defense relies on robust cost analysis and negotiation to ensure fair and reasonable pricing, which is particularly important for Cost Plus Fixed Fee contracts.
How will the effectiveness of the tactical integration services be measured, and what are the key performance indicators for this contract?
Key performance indicators (KPIs) and methods for measuring effectiveness are not specified in the award data. For a Cost Plus Fixed Fee contract, effective oversight and clear performance metrics are essential to ensure the contractor delivers the intended outcomes and that taxpayer funds are used efficiently.
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: $9,912,392
Exercised Options: $9,912,392
Current Obligation: $8,798,000
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: 2025-03-12
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-08
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