DoD's $46M Sole Source Training Services Contract Awarded to Lockheed Martin Faces Scrutiny
Contract Overview
Contract Amount: $46,140,275 ($46.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-03-13
End Date: 2022-08-31
Contract Duration: 1,997 days
Daily Burn Rate: $23.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::CT::IGF SOUTH KOREA, NORWAY, JAPAN, AND AUSTRALIA FMS SOLE SOURCE TRAINING SERVICES
Place of Performance
Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $46.1 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::CT::IGF SOUTH KOREA, NORWAY, JAPAN, AND AUSTRALIA FMS SOLE SOURCE TRAINING SERVICES Key points: 1. Significant contract value of $46.14M for training services. 2. Sole source award to Lockheed Martin raises competition concerns. 3. Contract duration of nearly 2000 days indicates long-term reliance. 4. Educational Support Services sector, with potential for high per-unit costs.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, makes a direct pricing assessment difficult without further data. Benchmarking against similar training services is challenging due to the specialized nature and lack of competitive bids.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no competition was sought. This limits price discovery and potentially leads to higher costs for taxpayers as the government did not leverage market competition.
Taxpayer Impact: The lack of competition in this sole-source award may result in suboptimal pricing, potentially increasing the financial burden on taxpayers for these training services.
Public Impact
Taxpayers may be overpaying for specialized training due to the absence of competitive bidding. The long contract duration suggests a potential for vendor lock-in and reduced flexibility. Lack of transparency in the sole-source justification could obscure potential cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole Source Justification
- Lack of Competition
- Cost Plus Fixed Fee Structure
- Long Contract Duration
Positive Signals
- Essential Training Services Provided
- Experienced Contractor Selected
Sector Analysis
This contract falls within the Educational Support Services sector, which can involve specialized training for complex systems. Benchmarking is difficult without comparable competitive contracts, but the sole-source nature suggests potential for inflated costs.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a lack of opportunity for smaller entities in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the justification for not competing the requirement was sound.
Related Government Programs
- Educational Support Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole Source Award
- Lack of Competition
- Cost Plus Fixed Fee Structure
- Potential for Overpricing
- Limited Small Business Participation
Tags
educational-support-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.1 million to LOCKHEED MARTIN CORPORATION. IGF::CT::IGF SOUTH KOREA, NORWAY, JAPAN, AND AUSTRALIA FMS SOLE SOURCE TRAINING 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 $46.1 million.
What is the period of performance?
Start: 2017-03-13. End: 2022-08-31.
What was the specific justification for awarding this training services contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification was made. However, the specific rationale is not detailed. A thorough review would examine the documented justification, such as unique capabilities or urgent needs, and assess if any competitive avenues were overlooked or deemed infeasible.
How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and value for money in this sole-source training contract?
The CPFF structure incentivizes the contractor to incur costs, as their fee is a fixed percentage of those costs. In a sole-source scenario, this can reduce the contractor's motivation to minimize expenses, potentially leading to higher overall costs for the government compared to fixed-price contracts or competitive awards where cost efficiency is paramount.
What is the long-term strategic value and potential for future competition for these training services, given the contract's duration?
The contract's nearly 2000-day duration suggests a long-term need for these specific training services. Without a clear path to competition or potential for service consolidation, this could indicate a sustained sole-source relationship, limiting future opportunities for other providers and potentially entrenching current cost structures.
Industry Classification
NAICS: Educational Services › Educational Support Services › Educational Support Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0017816R2003
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
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: $49,804,865
Exercised Options: $49,804,865
Current Obligation: $46,140,275
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $5,738,712
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-03-13
Current End Date: 2022-08-31
Potential End Date: 2022-08-31 00:00:00
Last Modified: 2024-07-24
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