DoD's $16.3M Lockheed Martin Contract for Air Terminal Services Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $16,362,652 ($16.4M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2009-12-09

End Date: 2009-12-30

Contract Duration: 21 days

Daily Burn Rate: $779.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AIR TERMINAL SERVICES

Plain-Language Summary

Department of Defense obligated $16.4 million to LOCKHEED MARTIN CORP for work described as: AIR TERMINAL SERVICES Key points: 1. The contract value of $16.3M for air terminal services is a significant investment in support services. 2. Lockheed Martin Corp. secured this contract, indicating strong competition in the aerospace and defense sector. 3. The award method, 'Full and Open Competition After Exclusion of Sources,' suggests a competitive process with specific justifications. 4. The 'All Other Support Services' category (NAICS 561990) is broad, making direct sector benchmarks challenging without further detail.

Value Assessment

Rating: fair

The contract value of $16.3M for 21 days of service is substantial. Without specific performance metrics or comparable contracts for similar durations and scope, assessing value for money is difficult. The firm fixed-price nature provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies a competitive process was initiated, but specific sources may have been excluded for defined reasons, potentially impacting the breadth of competition and price discovery.

Taxpayer Impact: Taxpayer funds are utilized for essential support services, with the competitive award process aiming for cost-effectiveness.

Public Impact

Ensures critical air terminal operations are maintained, supporting military logistics and personnel movement. The contract's duration of 21 days suggests a short-term, potentially surge-related requirement. Supports employment within the defense contracting industry, specifically in specialized support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Short contract duration (21 days) may indicate a temporary need or a gap-filling measure.
  • Exclusion of sources in a full and open competition warrants scrutiny for potential limitations on competition.
  • Broad NAICS code (561990) makes it hard to assess if the best value was achieved without more specific service details.

Positive Signals

  • Awarded under full and open competition, indicating an attempt to solicit multiple bids.
  • Firm Fixed Price contract type provides cost certainty for the government.
  • Awarded to a major defense contractor, Lockheed Martin, suggesting capability and experience.

Sector Analysis

This contract falls under support services within the broader aerospace and defense sector. Spending in this area is critical for operational readiness but can vary significantly based on mission requirements and geopolitical factors. Benchmarks are difficult without more specific service definitions.

Small Business Impact

The data indicates the contract was awarded to Lockheed Martin Corp., a large business. There is no explicit information regarding small business participation or subcontracting goals within this specific award.

Oversight & Accountability

The award method 'Full and Open Competition After Exclusion of Sources' suggests a defined process was followed. However, the rationale for excluding sources requires further examination to ensure robust oversight and accountability.

Related Government Programs

  • All Other Support Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of detailed service description
  • Ambiguity in 'Exclusion of Sources' justification
  • Short contract duration raises questions about necessity or planning
  • High cost per day requires further validation

Tags

all-other-support-services, department-of-defense, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to LOCKHEED MARTIN CORP. AIR TERMINAL SERVICES

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2009-12-09. End: 2009-12-30.

What specific air terminal services were provided under this contract, and how did their scope justify the $16.3M cost for a 21-day period?

The provided data lacks specific details on the exact air terminal services rendered. The high cost for a short duration suggests potentially complex or high-volume operations, specialized equipment, or urgent requirements. Further documentation would be needed to understand the service scope and justify the expenditure.

What was the justification for excluding specific sources during the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion potentially limit competitive pricing?

The justification for excluding sources is not provided in the data. Such exclusions typically occur for reasons like unique capabilities, security requirements, or prior performance. Without knowing the excluded sources and the rationale, it's difficult to definitively assess the impact on competitive pricing, though limitations are possible.

How effective was Lockheed Martin Corp. in delivering the contracted air terminal services, and did this performance influence future contract awards in this category?

The provided data does not include performance metrics or historical award information related to this specific contract. Assessing effectiveness would require access to past performance reviews, contract close-out reports, or subsequent contract awards to determine if Lockheed Martin's delivery met expectations and influenced future decisions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesOther Support ServicesAll Other Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: N6817109R0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817

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: $124,866,663

Exercised Options: $16,362,652

Current Obligation: $16,362,652

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2009-12-09

Current End Date: 2009-12-30

Potential End Date: 2009-12-30 00:00:00

Last Modified: 2021-08-01

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