DoD Awards $33M for Computer Systems Design Services to Lockheed Martin, Raising Competition Concerns
Contract Overview
Contract Amount: $33,068,202 ($33.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-11
End Date: 2026-08-28
Contract Duration: 1,144 days
Daily Burn Rate: $28.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ITT-2A UPGRADE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $33.1 million to LOCKHEED MARTIN CORPORATION for work described as: ITT-2A UPGRADE Key points: 1. Significant contract value of $33.1 million awarded. 2. Sole-source award to Lockheed Martin limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. IT sector spending on computer systems design services.
Value Assessment
Rating: questionable
The contract value of $33.1 million for computer systems design services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin Corporation, was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these computer systems design services.
Public Impact
Taxpayers may be overpaying for essential IT services due to the sole-source nature of the award. Limited transparency into the pricing justification for this significant contract. Potential impact on the availability of funds for other critical government needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Awarded to a known defense contractor
- Clear service description
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services, a critical area for government operations. Benchmarks for similar contracts are difficult to establish without competitive data.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award, as it was awarded directly to Lockheed Martin Corporation.
Oversight & Accountability
Oversight is needed to ensure the necessity and cost-effectiveness of this sole-source award, especially given the substantial financial commitment.
Related Government Programs
- Computer Systems Design 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 pricing justification.
- No small business participation noted.
Tags
computer-systems-design-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.1 million to LOCKHEED MARTIN CORPORATION. ITT-2A UPGRADE
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 $33.1 million.
What is the period of performance?
Start: 2023-07-11. End: 2026-08-28.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further details from the Department of Defense, it's impossible to ascertain the specific reasons. However, sole-source contracts often raise concerns about potential overpricing and reduced innovation compared to competitive procurements.
How can the government ensure fair pricing for this sole-source contract?
Ensuring fair pricing for sole-source contracts involves rigorous cost analysis, benchmarking against similar historical contracts (if available), and potentially engaging independent cost estimators. The contracting agency should demand detailed cost breakdowns from the contractor and negotiate aggressively to achieve a reasonable price, even without direct competition.
What is the potential impact on future IT procurements if sole-source awards become common for this type of service?
If sole-source awards for computer systems design services become a trend, it could stifle competition, discourage new entrants into the government contracting market, and potentially lead to sustained higher costs for taxpayers. It may also reduce the incentive for contractors to innovate and offer competitive pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134023R0005
Pricing Type: FIRM FIXED PRICE (J)
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: $47,196,006
Exercised Options: $33,068,202
Current Obligation: $33,068,202
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $6,728,289
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6134023D0007
IDV Type: IDC
Timeline
Start Date: 2023-07-11
Current End Date: 2026-08-28
Potential End Date: 2026-08-28 00:00:00
Last Modified: 2026-01-08
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