Navy Awards $834M Contract to Lockheed Martin for Training Services
Contract Overview
Contract Amount: $83,431,700 ($83.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2001-05-30
End Date: 2006-07-14
Contract Duration: 1,871 days
Daily Burn Rate: $44.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: 200112!012313!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017801C2005 !A!N!*!Y! !20010530!20060930!848028494!150049880!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000000521180!Y!N!000000000000!U008!TRAINING/CURRICULUM DEVELOPMENT !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!R!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!* !A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $83.4 million to LOCKHEED MARTIN CORPORATION for work described as: 200112!012313!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017801C2005 !A!N!*!Y! !20010530!20060930!848028494!150049880!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLI… Key points: 1. The contract, valued at $834.3 million, was awarded to Lockheed Martin Corporation. 2. This is a definitive contract for training and curriculum development services. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Engineering Services, with a PSC code of 541330.
Value Assessment
Rating: fair
The contract's value of $834.3 million over approximately 5 years suggests a significant investment. Benchmarking against similar training development contracts would be necessary to assess pricing fairness.
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 higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to inflated prices, impacting taxpayer value.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract (over 5 years) means sustained potential overpayment. Lack of transparency in the sole-source award process hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established contractor
- Long-term training solution
Sector Analysis
This contract falls within the Engineering Services sector, specifically for training and curriculum development. Spending in this area can vary widely based on technological advancements and defense needs.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a large corporation, Lockheed Martin.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability for the justification of the non-competitive award is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns without competition.
- Limited transparency in contract award.
- Long contract duration increases risk.
- Need for strong government oversight.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.4 million to LOCKHEED MARTIN CORPORATION. 200112!012313!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017801C2005 !A!N!*!Y! !20010530!20060930!848028494!150049880!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000000521180!Y!N!000000000000!U008!TRAINING/CURRICULUM DEVELOPMENT !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!*!*!3! ! ! !*!*!*!B!*!*!A!
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 $83.4 million.
What is the period of performance?
Start: 2001-05-30. End: 2006-07-14.
What was the justification for awarding this significant training contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's difficult to ascertain the precise reason, but it's a critical factor in assessing the value and necessity of this contract.
How does the cost of this contract compare to similar training development efforts, especially those awarded competitively?
A thorough cost-benefit analysis is needed. Comparing the per-unit cost or overall value of this $834M contract against benchmarks for similar training programs, particularly those secured through competitive bidding, would reveal potential overpricing or justify the higher cost due to unique requirements.
What mechanisms are in place to ensure the effectiveness and value of the training services provided by Lockheed Martin under this contract?
Given the sole-source nature, robust performance metrics, regular reviews, and clear deliverables are essential. The government must actively monitor the quality and impact of the training to ensure it meets objectives and justifies the substantial investment, despite the lack of competitive pressure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 199 BORTON LANDING ROAD, MOORESTOWN, NJ, 08057
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: 2001-05-30
Current End Date: 2006-07-14
Potential End Date: 2006-07-14 00:00:00
Last Modified: 2023-08-16
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