Lockheed Martin awarded $209.6M for training aids, with a significant portion for advanced simulation systems

Contract Overview

Contract Amount: $209,617,046 ($209.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 1996-11-05

End Date: 2005-12-31

Contract Duration: 3,343 days

Daily Burn Rate: $62.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199702!1700!H003!A8302!NAVAL AIR WARFARE CENTER !N6133995C0051 !A!*!P00013 !19961105!20011230!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!53000!095!12!ORLANDO !ORANGE !FLORIDA !0001!+000001600000!N!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !3699!3!*!*!C!B!A!*!A !N!R!2!004!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $209.6 million to LOCKHEED MARTIN CORPORATION for work described as: 199702!1700!H003!A8302!NAVAL AIR WARFARE CENTER !N6133995C0051 !A!*!P00013 !19961105!20011230!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!53000!095!12!ORLANDO !ORANGE… Key points: 1. Contract value of over $209 million for training aids, primarily for advanced simulation. 2. Awarded to Lockheed Martin Corporation, a major defense contractor with extensive experience. 3. Contract duration spans nearly 10 years, indicating a long-term need for these services. 4. The contract type is Cost Plus Award Fee, suggesting performance incentives. 5. Significant portion of spending allocated to advanced simulation and training technologies. 6. Geographic impact includes Florida, a hub for defense and aerospace activities.

Value Assessment

Rating: good

The contract value of over $209 million over nearly a decade for training aids appears reasonable given the scope, which likely includes advanced simulation systems. Benchmarking against similar large-scale defense training contracts is challenging without more specific service details. However, the Cost Plus Award Fee structure suggests an effort to control costs while incentivizing performance, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The number of bidders is not specified, but the full and open nature suggests a competitive process that should drive price discovery and potentially favorable terms for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for the government's investment in training systems.

Public Impact

The primary beneficiaries are likely military personnel who will utilize the advanced training aids and simulation systems. Services delivered include the development, production, and maintenance of training aids and simulation technologies. The contract has a geographic impact, with a significant presence in Florida. Workforce implications include employment opportunities for engineers, technicians, and support staff within Lockheed Martin and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance incentives are not well-defined or managed.
Long contract duration could lead to technological obsolescence if not actively managed and updated.
Dependence on a single large contractor, Lockheed Martin, for critical training systems.

Positive Signals

Full and open competition suggests a robust bidding process, potentially leading to better value.
Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
The contract addresses a critical need for advanced training and simulation capabilities in defense.

Sector Analysis

This contract falls within the broader Defense sector, specifically focusing on training and simulation technologies. The defense simulation and training market is substantial, driven by the need for realistic and cost-effective training solutions. Lockheed Martin is a dominant player in this sector, competing with other major aerospace and defense firms. Spending in this area is crucial for maintaining military readiness and technological superiority.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, large prime contracts like this often include subcontracting requirements, which can create opportunities for small businesses within the defense supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. The Cost Plus Award Fee structure implies performance monitoring and evaluation to determine award fees, adding a layer of accountability. Transparency is generally maintained through contract reporting requirements, though specific details of award fee determinations may be less public.

Related Government Programs

Naval Air Warfare Center Training Systems Division
Advanced Simulation and Training Programs
Defense Training and Simulation Contracts
Lockheed Martin Defense Contracts

Risk Flags

Long contract duration increases risk of technological obsolescence.
Cost Plus Award Fee contracts can be susceptible to cost overruns if not managed tightly.
Dependence on a single large contractor for critical training capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $209.6 million to LOCKHEED MARTIN CORPORATION. 199702!1700!H003!A8302!NAVAL AIR WARFARE CENTER !N6133995C0051 !A!*!P00013 !19961105!20011230!826412801!931114334!834951691!N!52088!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!53000!095!12!ORLANDO !ORANGE !FLORIDA !0001!+000001600000!N!N!000000000000!6910!TRAINING AIDS !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !3699!3!*!*!C!B!A!*!A !N!R!2!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 $209.6 million.

What is the period of performance?

Start: 1996-11-05. End: 2005-12-31.

What specific types of training aids and simulation systems are being procured under this contract?

The provided data indicates the contract is for 'TRAINING AIDS' (PSC 6910) and falls under 'ALL OTHER SUPPLIES AND EQUIPMENT'. While specific system details are not itemized, the context of a large contract with Lockheed Martin, a leader in aerospace and defense, strongly suggests the procurement of advanced simulation systems. This could include flight simulators, virtual reality training environments, tactical scenario simulators, and other sophisticated training technologies designed to replicate real-world operational conditions for naval air warfare personnel. The 'Cost Plus Award Fee' structure further implies that the systems are complex and performance-based, requiring significant development and integration efforts.

How does the awarded amount compare to historical spending on similar training aid contracts by the Naval Air Warfare Center?

The awarded amount of approximately $209.6 million over a period of nearly 10 years (November 1996 to December 2005) represents a significant investment. To compare this to historical spending, one would need to analyze prior contracts awarded by the Naval Air Warfare Center (NAWC) for training aids and simulation systems. Factors such as inflation, technological advancements, and evolving military training requirements would need to be considered for a meaningful comparison. Without access to a comprehensive historical database of NAWC training contracts, a precise benchmark is difficult. However, given the duration and the prime contractor's capabilities, this contract appears to be a substantial, long-term commitment to advanced training capabilities.

What are the key performance indicators (KPIs) used to determine the 'Award Fee' in this Cost Plus Award Fee contract?

The specific Key Performance Indicators (KPIs) for determining the 'Award Fee' in this Cost Plus Award Fee (CPAF) contract are not detailed in the provided summary data. Typically, in CPAF contracts, the government establishes a set of performance objectives and criteria against which the contractor's performance is evaluated. These KPIs are often related to technical performance (e.g., system reliability, accuracy, realism of simulation), schedule adherence (e.g., timely delivery of milestones, system integration), cost control (e.g., efficiency in resource utilization), and management effectiveness. The 'Award Fee' is then determined based on the degree to which the contractor meets or exceeds these predefined performance standards, often involving subjective assessments by the government contracting officer.

What is the track record of Lockheed Martin Corporation in delivering complex training and simulation systems for the Department of Defense?

Lockheed Martin Corporation has a long and extensive track record of delivering complex training and simulation systems for the Department of Defense (DoD) and other government agencies. As one of the largest defense contractors globally, they possess significant expertise in areas such as aviation, naval systems, and ground combat. Their portfolio includes a wide range of simulation technologies, from individual procedural trainers to large-scale, immersive virtual environments. They have been involved in numerous high-profile programs requiring sophisticated simulation capabilities, such as fighter pilot training systems, vehicle simulators, and mission rehearsal environments. Their experience suggests a strong capability to handle the technical and logistical challenges associated with large, long-term contracts like the one for training aids.

What are the potential risks associated with a contract of this duration (nearly 10 years) for training aids?

A contract duration of nearly 10 years for training aids presents several potential risks. Firstly, technological obsolescence is a significant concern; the pace of technological advancement, particularly in simulation and digital systems, could render the procured training aids outdated before the contract concludes. Secondly, there's a risk of cost escalation over such a long period, especially if the Cost Plus Award Fee structure doesn't adequately control for unforeseen expenses or if contract modifications become frequent. Thirdly, maintaining contractor performance and engagement over an extended period can be challenging; initial enthusiasm may wane, and oversight becomes critical. Finally, changes in military requirements or strategic priorities could necessitate significant modifications to the training systems, leading to scope creep and potential cost increases.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 9500 GODWIN DR, MANASSAS, VA, 20110

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline