DoD's $20.3M contract for PBL CSP SERVICE awarded to Lockheed Martin Corporation shows potential for cost savings

Contract Overview

Contract Amount: $20,297,110 ($20.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2007-12-11

End Date: 2008-11-30

Contract Duration: 355 days

Daily Burn Rate: $57.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PBL CSP SERVICE

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to LOCKHEED MARTIN CORPORATION for work described as: PBL CSP SERVICE Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price inflation. 2. The duration of the contract was 355 days, indicating a relatively short-term service requirement. 3. The contract was awarded to a single bidder, suggesting limited competition. 4. The contract's value of $20.3 million falls within a moderate spending range for specialized repair services. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. The contract was awarded by the Department of the Navy, a major component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed service descriptions and comparable contract data. However, the fixed-price nature suggests an attempt to control costs. The award amount of $20.3 million for a less-than-one-year service contract for 'Other Electronic and Precision Equipment Repair and Maintenance' appears within a reasonable range for specialized services, but the lack of competition prevents a robust value assessment against market alternatives. Further analysis would require understanding the specific services rendered and the criticality of the equipment being serviced.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. This raises concerns about whether the government obtained the best possible price and value.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the absence of competition limits price discovery and negotiation leverage.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and potentially its operational readiness, through the maintenance of electronic and precision equipment. The services delivered likely involve the repair and maintenance of specialized electronic and precision equipment crucial for military operations. The geographic impact is centered in Florida (ST: FL, SN: FLORIDA), where the contractor is located and services were likely performed. The contract supports specialized technical roles within the defense sector, potentially impacting a skilled workforce in the precision equipment repair field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than if the contract had been competed.
Sole-source awards can reduce transparency and accountability in the procurement process.
The specific nature of 'PBL CSP SERVICE' is not detailed, making it difficult to assess the full scope and necessity of the contract.
The contract's short duration (355 days) might indicate a stop-gap measure or a narrowly defined need, potentially leading to future contract fragmentation.

Positive Signals

The contract was awarded to a known entity, Lockheed Martin Corporation, suggesting a level of established capability.
The fixed-price contract type provides cost certainty for the government, mitigating the risk of cost overruns.
The contract addresses a specific need within the Department of the Navy for equipment repair and maintenance, contributing to operational readiness.

Sector Analysis

The contract falls within the broader defense sector, specifically related to the maintenance and repair of electronic and precision equipment. This is a critical sub-sector supporting military readiness and technological superiority. The market for such specialized repair services is often dominated by a few large defense contractors due to the technical expertise, security clearances, and established relationships required. Spending in this area is substantial across the DoD, with significant investments in maintaining complex weapon systems and support infrastructure. Comparable spending benchmarks would typically involve analyzing other contracts for similar repair and maintenance services across different branches of the military.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The award to a large prime contractor like Lockheed Martin Corporation suggests that subcontracting opportunities for small businesses might exist, but these are not explicitly mandated or detailed in the provided data. The impact on the small business ecosystem is likely indirect, depending on whether Lockheed Martin engages small businesses for specialized support services related to this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the DoD Inspector General, which investigates fraud, waste, and abuse. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance metrics. Accountability would be managed through contract clauses, performance reviews, and payment schedules tied to deliverables.

Related Government Programs

Department of Defense Maintenance and Repair Contracts
Electronic Equipment Repair Services
Precision Equipment Maintenance
Lockheed Martin Defense Contracts
Navy Service Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award limits competition
Lack of detailed service description
Potential for uncompetitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to LOCKHEED MARTIN CORPORATION. PBL CSP SERVICE

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 $20.3 million.

What is the period of performance?

Start: 2007-12-11. End: 2008-11-30.

What specific electronic and precision equipment was serviced under this contract, and what was the criticality of these assets to Navy operations?

The provided data does not specify the exact type of electronic and precision equipment serviced under contract number 811219. The description 'Other Electronic and Precision Equipment Repair and Maintenance' is broad. To assess criticality, one would need to consult internal Navy documentation or the contract's statement of work. Typically, such services support a range of assets from communication systems and sensors to navigation equipment and weapon system components. The criticality would be determined by the equipment's role in mission accomplishment, operational readiness, and the availability of alternatives. Without this specific information, it's difficult to gauge the precise impact on Navy operations beyond the general assumption that functional equipment is essential.

How does the $20.3 million contract value compare to similar sole-source repair and maintenance contracts awarded by the Department of the Navy in the same fiscal year?

Comparing the $20.3 million value requires access to a broader dataset of Department of the Navy contracts from the 2007-2008 period, specifically those categorized under NAICS code 811219 (Other Electronic and Precision Equipment Repair and Maintenance) and awarded on a sole-source basis. Without this comparative data, it's challenging to definitively state whether $20.3 million represents a high, low, or average value. However, for a contract lasting less than a year (355 days), $20.3 million suggests a significant scope of work or highly specialized, high-cost services. A comprehensive analysis would involve identifying comparable contracts, normalizing for duration and scope, and analyzing the pricing structures to benchmark value.

What were the justifications provided for awarding this contract on a sole-source basis to Lockheed Martin Corporation?

The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations (FAR). Common reasons include: (1) the property or services were available only from a limited number of sources; (2) the contract was entered into under the authority of statute or regulation; (3) the agency head determined that the needs of the government could not be met by any other source; or (4) in exceptional cases, for reasons of urgency, industrial mobilization, or national security. For this specific contract, the justification would have been formally documented by the Department of the Navy at the time of award. Without access to that justification document (often called a Justification and Approval or J&A), the precise reason remains unknown, but it implies a perceived lack of viable alternatives or unique capabilities held by Lockheed Martin.

What is Lockheed Martin Corporation's track record with the Department of the Navy for similar repair and maintenance services?

Lockheed Martin Corporation is a major defense contractor with an extensive history of performing a wide array of services for the Department of the Navy, including maintenance and repair. While this specific contract (811219) is for 'Other Electronic and Precision Equipment Repair and Maintenance,' Lockheed Martin's broader portfolio includes complex systems integration, platform support, and lifecycle sustainment for naval assets. Their track record generally involves large, complex contracts, often involving advanced technologies. Performance on previous contracts would be documented through past performance evaluations and contract administration records. Given their size and scope, they are a frequent recipient of DoD contracts, indicating a generally accepted capability to meet government requirements, though specific performance on individual contracts can vary.

What were the historical spending patterns for this specific type of service (NAICS 811219) by the Department of the Navy prior to this award?

Analyzing historical spending patterns for NAICS 811219 by the Department of the Navy prior to December 2007 would require accessing historical federal procurement databases (like USASpending.gov or FPDS-NG archives). This would involve filtering for the specific agency (Department of the Navy), the relevant NAICS code, and the period preceding the award date (e.g., 2005-2007). Such an analysis would reveal the typical volume of spending, the primary contractors receiving awards, and whether this type of service was frequently competed or awarded sole-source. It could also highlight trends in contract values and durations. Without direct access to that historical data, it's impossible to detail the specific spending patterns, but generally, the Navy spends billions annually on maintenance and repair across various categories.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 12506 LAKE UNDERHILL RD, ORLANDO, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,297,110

Exercised Options: $20,297,110

Current Obligation: $20,297,110

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline