DoD awards $38.5M for LCS-1 ITT-B PLUS Engineering Services to Lockheed Martin
Contract Overview
Contract Amount: $38,549,460 ($38.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-11-04
End Date: 2023-01-30
Contract Duration: 1,183 days
Daily Burn Rate: $32.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LCS-1 ITT-B PLUS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $38.5 million to LOCKHEED MARTIN CORPORATION for work described as: LCS-1 ITT-B PLUS Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. IT/Engineering Services sector, with a focus on naval applications.
Value Assessment
Rating: questionable
The contract value of $38.5M for engineering services is substantial. Without competitive data, it's difficult to assess if this price is optimal compared to similar contracts for naval engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these engineering services.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. Limited transparency into the justification for not competing this significant contract. Potential impact on future competition for similar naval engineering services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Contract awarded to a known prime contractor
- Services provided to the Department of Defense
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting naval shipbuilding and systems. Spending benchmarks for sole-source engineering contracts can vary widely, but competition typically drives better value.
Small Business Impact
The data indicates this contract was not awarded to a small business, and the sole-source nature further limits opportunities for small business participation.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The Department of the Navy's justification for this award warrants scrutiny.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in award justification.
- No small business participation indicated.
Tags
engineering-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.5 million to LOCKHEED MARTIN CORPORATION. LCS-1 ITT-B PLUS
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 $38.5 million.
What is the period of performance?
Start: 2019-11-04. End: 2023-01-30.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm no other capable vendors existed?
The provided data does not include the justification for the sole-source award. Typically, agencies must document reasons such as unique capabilities, urgent needs, or lack of competition. A thorough market research would be expected to validate the necessity of a sole-source approach and explore potential alternatives.
How does the $38.5M contract value compare to industry benchmarks for similar engineering services on naval platforms, especially considering the sole-source nature?
Without specific details on the services rendered and comparable sole-source contracts, a precise benchmark is difficult. However, sole-source awards generally carry a risk premium compared to competitively bid contracts. The value should be assessed against the unique requirements and the contractor's historical performance and pricing.
What mechanisms are in place to ensure effective cost control and performance monitoring for this sole-source contract to mitigate potential risks associated with non-competitive awards?
Effective cost control and performance monitoring typically involve robust contract management, including detailed reporting requirements, regular progress reviews, and potentially independent cost analysis. The Department of the Navy should have established procedures to oversee this contract, ensuring deliverables meet specifications and costs remain within agreed-upon limits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134019R0059
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $38,549,460
Exercised Options: $38,549,460
Current Obligation: $38,549,460
Actual Outlays: $9,431,639
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $20,750,670
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-11-04
Current End Date: 2023-01-30
Potential End Date: 2023-01-30 00:00:00
Last Modified: 2022-11-30
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