Lockheed Martin awarded $44.6M for Other Architect & Engineering Services, a definitive contract with a 10-year duration

Contract Overview

Contract Amount: $44,593,717 ($44.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 1997-10-01

End Date: 2007-11-28

Contract Duration: 3,710 days

Daily Burn Rate: $12.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199812!1700!1123!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017898C2004 !A!*!* !19971001!19980930!848028494!834951691!834951691!N!02769!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING RD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!0001!+000000350000!N!N!000000000000!C219!OTHER ARCHITECT & ENGINEERING SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!D !N!R!1!001!N!1G!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $44.6 million to LOCKHEED MARTIN CORPORATION for work described as: 199812!1700!1123!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017898C2004 !A!*!* !19971001!19980930!848028494!834951691!834951691!N!02769!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING RD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLIN… Key points: 1. Contract awarded to a single, large business prime contractor. 2. Significant contract duration of 10 years suggests a long-term need for services. 3. Cost-plus award fee contract type indicates potential for performance incentives. 4. Services procured fall under 'Other Architect & Engineering Services', a broad category. 5. Contract awarded by the Naval Surface Warfare Center, indicating a defense-related need. 6. The contract was not competed, raising questions about price discovery and value.

Value Assessment

Rating: questionable

The total value of $44.6 million over 10 years averages to approximately $4.46 million annually. Without specific deliverables or a clear scope of work, it is difficult to benchmark this value. The cost-plus award fee structure, while allowing for incentives, can also lead to higher costs if not managed tightly. Comparing this to similar architect and engineering services contracts is challenging due to the broad categorization and long duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a direct award. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down costs or fostered innovation through diverse proposals.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for services, as the competitive pressure to offer the best price is absent.

Public Impact

The primary beneficiary is likely the Naval Surface Warfare Center, which receives architect and engineering support. Services delivered include a broad range of architect and engineering support, crucial for naval operations and infrastructure. The geographic impact is centered around the Naval Surface Warfare Center's operations, likely within New Jersey. Workforce implications may include specialized engineering and architectural roles within Lockheed Martin and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition increases the risk of overpayment.
Long contract duration without clear performance metrics could lead to complacency.
Cost-plus award fee structure requires robust oversight to ensure value for money.
Broad service category makes it difficult to assess specific performance and value.

Positive Signals

Award to a large, established defense contractor like Lockheed Martin suggests a high level of capability.
The long duration indicates a stable, ongoing requirement that the contractor is expected to fulfill reliably.
The award fee component, if managed effectively, can incentivize strong performance.
The contract is for architect and engineering services, which are critical for complex defense projects.

Sector Analysis

The 'Other Architect & Engineering Services' category is broad and encompasses a wide range of professional services essential for planning, designing, and overseeing construction and infrastructure projects. Within the defense sector, such services are critical for maintaining and upgrading naval facilities, developing new platforms, and ensuring operational readiness. Comparable spending benchmarks are difficult to establish without a more precise definition of the services rendered, but large, long-term contracts for specialized engineering support are common within the Department of Defense.

Small Business Impact

This contract was awarded to Lockheed Martin Corporation, a large business prime contractor, and there is no indication of a small business set-aside. Given the sole-source nature and the prime contractor's size, the potential for small business subcontracting opportunities exists but is not guaranteed or mandated by the contract terms. The impact on the small business ecosystem would depend on whether Lockheed Martin actively seeks out and utilizes small business partners for specialized aspects of the architect and engineering work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense, likely managed by the Naval Surface Warfare Center and potentially monitored by the Defense Contract Management Agency. Accountability measures would be tied to the terms of the Cost Plus Award Fee contract, focusing on performance against defined objectives and award criteria. Transparency is limited due to the sole-source award and the broad nature of the services, making detailed public scrutiny challenging.

Related Government Programs

Naval Surface Warfare Center Contracts
Department of Defense Architect and Engineering Services
Lockheed Martin Defense Contracts
Cost Plus Award Fee Contracts
Long-Term Defense Contracts

Risk Flags

Sole-source award
Long contract duration
Broad service category
Cost-plus contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.6 million to LOCKHEED MARTIN CORPORATION. 199812!1700!1123!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017898C2004 !A!*!* !19971001!19980930!848028494!834951691!834951691!N!02769!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING RD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!0001!+000000350000!N!N!000000000000!C219!OTHER ARCHITECT & ENGINEERING SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!D !N!R!1!0

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $44.6 million.

What is the period of performance?

Start: 1997-10-01. End: 2007-11-28.

What specific architect and engineering services are being provided under this contract?

The contract is broadly categorized under 'Other Architect & Engineering Services'. This designation typically includes a wide array of professional services related to the design, planning, and oversight of construction projects, infrastructure development, and potentially specialized technical engineering support. Without further details or specific line items, it's difficult to ascertain the exact nature of the services. These could range from preliminary site assessments and feasibility studies to detailed design work, construction supervision, and systems engineering for naval platforms or facilities. The Naval Surface Warfare Center's mission suggests these services are likely related to naval technology, infrastructure, or operational support.

How does the $44.6 million total value compare to similar architect and engineering contracts within the Department of Defense?

Benchmarking the $44.6 million value is challenging due to the contract's long 10-year duration and broad service category. Annualized, the contract value is approximately $4.46 million. Large defense contracts for architect and engineering services can range significantly, from millions to hundreds of millions of dollars, depending on the scope, complexity, and duration. Contracts for major infrastructure projects or advanced research and development support often exceed this value. However, for ongoing, specialized support services, this amount could be considered substantial. A more precise comparison would require identifying contracts with similar scopes of work and durations within the defense sector.

What are the key performance indicators (KPIs) and award criteria for the Cost Plus Award Fee (CPAF) structure?

The specific Key Performance Indicators (KPIs) and award criteria for this Cost Plus Award Fee (CPAF) contract are not publicly detailed. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fixed fee that is adjusted based on performance against pre-defined criteria. These criteria typically relate to factors such as technical performance, schedule adherence, cost control, and management effectiveness. For architect and engineering services, KPIs might include the quality of design documents, timeliness of project milestones, adherence to budget constraints, and responsiveness to client feedback. The 'award fee' portion is determined by a subjective evaluation by the government, incentivizing the contractor to exceed minimum performance standards.

What is the track record of Lockheed Martin Corporation in providing similar architect and engineering services to the government?

Lockheed Martin Corporation is a major defense contractor with extensive experience across a wide range of technical and engineering services. While primarily known for aerospace and defense systems, they also possess significant capabilities in engineering, program management, and technical support. They have a long history of performing complex, large-scale projects for the Department of Defense and other government agencies. Their track record includes designing, developing, and integrating sophisticated systems, which often requires substantial architect and engineering expertise. Specific performance data on their architect and engineering services contracts would be available through government contract databases, but their overall reputation suggests a high level of capability and experience.

What are the potential risks associated with a sole-source, long-duration contract of this nature?

The primary risks associated with this sole-source, long-duration contract include potential cost overruns, reduced incentive for innovation, and a lack of competitive pressure to ensure optimal value. Since the contract was not competed, the government may not have secured the most cost-effective solution. The 10-year duration, while providing stability, could also lead to complacency if not managed with rigorous oversight and performance management. There's a risk that the contractor's processes or technologies might become outdated over such a long period without the impetus of competition. Furthermore, the broad 'Other Architect & Engineering Services' category could mask inefficiencies or scope creep if not closely monitored.

How does this contract fit into the broader spending patterns for architect and engineering services within the Naval Surface Warfare Center?

This contract represents a significant investment in architect and engineering services for the Naval Surface Warfare Center (NSWC). The NSWC is responsible for a wide range of research, development, test, and evaluation activities for naval systems and platforms. Consequently, it requires substantial engineering and design support. A $44.6 million contract over 10 years suggests a sustained need for these specialized services, likely supporting ongoing projects, infrastructure maintenance, or the development of new naval technologies. It aligns with the broader defense spending trend where complex engineering and design capabilities are outsourced to experienced contractors to leverage specialized expertise and manage workload.

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $77,140,897

Exercised Options: $55,731,148

Current Obligation: $44,593,717

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline