DoD Awards $265M Lockheed Martin Contract for Systems Engineering Services

Contract Overview

Contract Amount: $26,531,003 ($26.5M)

Contractor: Lockheed Martin Integrated Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2004-07-29

End Date: 2012-08-03

Contract Duration: 2,927 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200412!000051!5700!GE70 !OO-ALC/PKHS/LHKS !F0960301D0207 !A!N! !N!QP30 ! !20040729!20080630!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000009065904!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!U!2!010!B! !Z!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200412!000051!5700!GE70 !OO-ALC/PKHS/LHKS !F0960301D0207 !A!N! !N!QP30 ! !20040729!20080630!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!07125!031!24!BETHESDA !MONT… Key points: 1. Contract awarded to Lockheed Martin for $265M for systems engineering services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is approximately 8 years, indicating a long-term need. 4. The sector is Defense, specifically Aircraft Manufacturing, a significant area of government spending.

Value Assessment

Rating: fair

The contract value of $265M over 8 years is substantial. Benchmarking against similar systems engineering contracts is difficult without more specific service details, but the duration suggests a significant scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. However, the specific impact on price for this particular contract is not detailed.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value. The total value of $265M represents a significant taxpayer investment.

Public Impact

This contract supports critical defense systems, potentially impacting national security. Lockheed Martin, a major defense contractor, will receive substantial revenue. The long-term nature of the contract suggests ongoing government reliance on these services. The specific services provided could influence the efficiency and effectiveness of defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft manufacturing through systems engineering services. Spending in this area is substantial, driven by national security requirements and technological advancements.

Small Business Impact

The contract was awarded to Lockheed Martin, a large prime contractor. There is no explicit information on subcontracting to small businesses, which could be an area for improvement in ensuring broader economic participation.

Oversight & Accountability

The contract is managed by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on performance, cost control, and adherence to contract terms over its 8-year duration.

Related Government Programs

Risk Flags

Tags

aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200412!000051!5700!GE70 !OO-ALC/PKHS/LHKS !F0960301D0207 !A!N! !N!QP30 ! !20040729!20080630!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000009065904!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334220!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2004-07-29. End: 2012-08-03.

What specific systems engineering services are included in this contract, and how do they align with current defense needs?

The data indicates 'SYSTEMS ENGINEERING SERVICES' but lacks granular detail. These services likely encompass design, integration, testing, and lifecycle support for complex defense systems, potentially related to aircraft or communication equipment. Alignment with current needs would depend on the specific platforms and technologies being supported, which are not specified in the provided data.

How was the 'COST PLUS FIXED FEE' pricing structure determined to be fair and reasonable given the long duration and potential for scope creep?

Determining fairness for a Cost Plus Fixed Fee (CPFF) contract requires robust cost realism analysis and negotiation. The government likely assessed historical costs, projected expenses, and profit margins. The fixed fee component incentivizes the contractor to control costs, but the long duration necessitates vigilant oversight to prevent scope creep and ensure the fee remains appropriate.

What mechanisms are in place to ensure effective performance and accountability from Lockheed Martin over the 8-year contract period?

Effective performance and accountability are typically ensured through contract clauses mandating regular progress reports, performance metrics (Key Performance Indicators - KPIs), and potential award fees or penalties. The Defense Contract Management Agency (DCMA) would be responsible for monitoring contractor performance, ensuring compliance with technical specifications, and managing payments based on achieved milestones.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 31088

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F0960301D0207

IDV Type: IDC

Timeline

Start Date: 2004-07-29

Current End Date: 2012-08-03

Potential End Date: 2012-08-03 00:00:00

Last Modified: 2016-09-20

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