DoD Awards $80.5M for Quality Control Services to Lockheed Martin, Extending Contract by 7 Years
Contract Overview
Contract Amount: $13,768,972 ($13.8M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-04-30
End Date: 2011-05-31
Contract Duration: 2,587 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200412!044354!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017804C2010 !A!N! !N! ! !20040430!20050531!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!12310!007!34!CHERRY HILL !CAMDEN !NEW JERSEY!+000000600000!N!N!000030144063!H110!QUALITY CONTROL SVCS/WEAPONS !A5 !WEAPONS !000 !* !541690!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!R!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! !N00024!0001! !
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.8 million to LOCKHEED MARTIN SERVICES, LLC for work described as: 200412!044354!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017804C2010 !A!N! !N! ! !20040430!20050531!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!12310!007!34!CHERRY HILL !CAMD… Key points: 1. Contract value of $80.5M awarded to Lockheed Martin Services, Inc. 2. Services include Quality Control and Weapons systems support. 3. Contract duration extended significantly from initial award. 4. Competition type was 'Full and Open', but specific awardee is Lockheed Martin. 5. Sector is Defense, with a focus on IT and technical consulting.
Value Assessment
Rating: fair
The contract value of $80.5M over an extended period suggests a moderate per-unit cost. Benchmarking against similar quality control and technical services contracts for naval warfare systems is necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although advertised as 'Full and Open Competition', the award went to a single entity, Lockheed Martin Services, Inc. This raises questions about the effectiveness of the competition in driving down prices or ensuring the best value.
Taxpayer Impact: Taxpayer funds are being utilized for quality control and weapons system services. The extended duration and single awardee warrant scrutiny to ensure cost-effectiveness and prevent potential price inflation.
Public Impact
Ensures continued quality control for naval surface warfare systems. Supports critical weapons systems maintenance and development. Potential for long-term reliance on a single contractor for specialized services. Impact on smaller businesses in the defense contracting ecosystem is unclear.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration without clear justification.
- Single awardee despite 'Full and Open' competition.
- Lack of transparency in pricing and cost controls.
Positive Signals
- Provides essential services for national defense.
- Established contractor with proven capabilities.
- Potential for streamlined operations due to contractor stability.
Sector Analysis
This contract falls within the Defense sector, specifically related to technical consulting and support services for naval warfare. Spending benchmarks for similar quality control and weapons system services within the DoD are typically high due to the specialized nature of the work.
Small Business Impact
The contract was awarded to Lockheed Martin Services, Inc., a large corporation. There is no explicit indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The contract's extended duration and the nature of the services necessitate robust oversight from the Naval Surface Warfare Center and the Defense Contract Management Agency to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for vendor lock-in due to long-term contract.
- Lack of transparency regarding the competitive bidding process outcomes.
- Extended contract duration may not reflect current market conditions.
- Risk of cost overruns if not closely monitored.
Tags
other-scientific-and-technical-consultin, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to LOCKHEED MARTIN SERVICES, LLC. 200412!044354!1700!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017804C2010 !A!N! !N! ! !20040430!20050531!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!12310!007!34!CHERRY HILL !CAMDEN !NEW JERSEY!+000000600000!N!N!000030144063!H110!QUALITY CONTROL SVCS/WEAPONS !A5 !WEAPONS !000 !* !541690!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $13.8 million.
What is the period of performance?
Start: 2004-04-30. End: 2011-05-31.
What specific performance metrics were used to justify the extension and continued award to Lockheed Martin Services, Inc.?
The provided data does not detail the specific performance metrics used to justify the contract extension and continued award. Further analysis would require access to performance reports, milestone achievements, and any documented evaluations of Lockheed Martin's service quality and adherence to contract requirements over the initial period.
How did the 'Full and Open Competition' process ensure competitive pricing and value for taxpayers, given the single awardee?
The 'Full and Open Competition' designation suggests the opportunity was available to all eligible bidders. However, the fact that only Lockheed Martin Services, Inc. was awarded the contract raises questions about the effectiveness of the competition. It's possible other bids were non-compliant, too high, or that Lockheed Martin offered the best value based on undisclosed criteria.
What is the projected cost-effectiveness of this contract over its extended duration compared to alternative service models?
Assessing the cost-effectiveness requires comparing the total contract value ($80.5M) against the duration (2587 days) and the specific services rendered. Without detailed cost breakdowns, performance data, and benchmarks for similar services, it's difficult to definitively state its cost-effectiveness. A comparative analysis with potential in-house service provision or other contractors would be needed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 2339 ROUTE 70 WEST, FLOOR, CHERRY HILL, NJ, 08002
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-30
Current End Date: 2011-05-31
Potential End Date: 2011-05-31 00:00:00
Last Modified: 2023-05-11
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