DoD Awards $52.3M for Engineering & Software Maintenance to Lockheed Martin
Contract Overview
Contract Amount: $52,326,453 ($52.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-04-01
End Date: 2017-04-18
Contract Duration: 2,209 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: SYUN AN EXTENSION - LIFE CYCLE ENGINEERING AND SOFTWARE MAINTENANCE
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92131
Plain-Language Summary
Department of Defense obligated $52.3 million to LOCKHEED MARTIN CORPORATION for work described as: SYUN AN EXTENSION - LIFE CYCLE ENGINEERING AND SOFTWARE MAINTENANCE Key points: 1. Significant contract value for long-term engineering and software support. 2. Lockheed Martin, a major defense contractor, is the awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over 6 years, indicating a need for sustained services.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. Benchmarking against similar long-term engineering and software maintenance contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing outcomes and whether the award fee structure incentivized cost efficiency require further analysis.
Taxpayer Impact: Taxpayer funds are being used for essential defense engineering and software maintenance. The effectiveness of the competition and contract management will determine the value for money.
Public Impact
Ensures continued operation and maintenance of critical systems. Supports a major defense contractor and its workforce. Potential for technological advancements through ongoing engineering services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure may not guarantee cost savings.
- Long contract duration could lead to scope creep or evolving needs.
- Limited visibility into specific performance metrics and award fee triggers.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense infrastructure.
- Long-term engagement suggests a stable and necessary service.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Department of the Navy. Spending in this sector is crucial for maintaining complex defense systems and requires specialized expertise.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The contract's duration and cost-plus nature warrant ongoing oversight to ensure performance and cost control. Regular reviews of award fee criteria and contractor performance are essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of transparency on specific performance metrics and award fee triggers.
- Limited visibility into small business subcontracting opportunities.
- Long contract duration may not adapt to rapidly changing technology.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.3 million to LOCKHEED MARTIN CORPORATION. SYUN AN EXTENSION - LIFE CYCLE ENGINEERING AND SOFTWARE MAINTENANCE
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 $52.3 million.
What is the period of performance?
Start: 2011-04-01. End: 2017-04-18.
What specific engineering and software maintenance tasks are included in this contract, and how do they align with current defense needs?
The contract covers life cycle engineering and software maintenance. This typically includes system upgrades, bug fixes, performance enhancements, and ensuring the software remains compatible with evolving hardware and operational requirements. The alignment with current defense needs would depend on the specific systems being supported, which are not detailed here.
How effectively did the full and open competition process drive down costs and ensure the best value for the government?
While full and open competition is designed to foster competitive pricing, the Cost Plus Award Fee structure introduces variables. The effectiveness in driving down costs would be evident in the final award fees paid and whether the contractor met or exceeded performance targets efficiently. Without post-award analysis, it's difficult to definitively assess the cost-saving impact.
What are the key performance indicators (KPIs) used to determine the award fee, and how are they measured to ensure contractor accountability?
Key performance indicators for such contracts often include system uptime, response times for maintenance requests, successful implementation of updates, and adherence to security protocols. The measurement process typically involves regular reporting by the contractor and independent government assessment against predefined metrics. The transparency and rigor of this measurement process are crucial for accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002411R3019
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $69,374,294
Exercised Options: $64,056,725
Current Obligation: $52,326,453
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4079
IDV Type: IDC
Timeline
Start Date: 2011-04-01
Current End Date: 2017-04-18
Potential End Date: 2017-04-18 00:00:00
Last Modified: 2025-04-24
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