DoD awards $13.5M to Lockheed Martin for C4I Testbed and INWSS Equipment
Contract Overview
Contract Amount: $13,537,558 ($13.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2009-02-03
End Date: 2012-11-30
Contract Duration: 1,396 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DESIGN, PROCUREMENT, INSTALLATION, INTEGRATION, AND TEST OF C4I TESTBED AND INWSS EQUIPMENT DELIVERY AT KINGS BAY, GA AND BAGOR, WA.
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Defense obligated $13.5 million to LOCKHEED MARTIN CORP for work described as: DESIGN, PROCUREMENT, INSTALLATION, INTEGRATION, AND TEST OF C4I TESTBED AND INWSS EQUIPMENT DELIVERY AT KINGS BAY, GA AND BAGOR, WA. Key points: 1. Significant contract awarded to a major defense contractor, Lockheed Martin. 2. The contract is for C4I testbed and INWSS equipment, crucial for missile and space vehicle manufacturing. 3. Lack of competition raises questions about potential price overruns and value for money. 4. The sector is Guided Missile and Space Vehicle Manufacturing, a specialized defense area.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $13.5M price is optimal compared to similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $13.5M contract means taxpayers may have paid a premium, as there was no incentive for the contractor to offer the lowest possible price.
Public Impact
Enhances critical C4I capabilities for national security. Supports advanced missile and space vehicle manufacturing infrastructure. Potential for cost overruns due to sole-source nature. Impacts a specialized segment of the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Critical technology development
- Supports key defense manufacturing
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized and critical area of defense spending. Benchmarks are difficult to establish due to the unique nature of C4I testbeds and INWSS equipment.
Small Business Impact
The awardee is Lockheed Martin Corp, a large prime contractor. There is no indication that small businesses were involved as subcontractors in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The contract was awarded by the Department of Defense via the Defense Contract Management Agency. Oversight would focus on cost control and delivery schedule adherence, particularly given the cost-plus contract type.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type increases cost risk.
- Potential for lack of price transparency.
- High value contract requires close oversight.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to LOCKHEED MARTIN CORP. DESIGN, PROCUREMENT, INSTALLATION, INTEGRATION, AND TEST OF C4I TESTBED AND INWSS EQUIPMENT DELIVERY AT KINGS BAY, GA AND BAGOR, WA.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $13.5 million.
What is the period of performance?
Start: 2009-02-03. End: 2012-11-30.
What specific C4I capabilities does this testbed enhance, and how does it contribute to overall defense readiness?
This testbed likely supports the development, integration, and testing of Command, Control, Communications, Computers, and Intelligence (C4I) systems. These systems are vital for coordinating military operations, sharing intelligence, and ensuring effective communication across different branches and platforms, ultimately enhancing overall defense readiness and operational effectiveness.
Given the sole-source nature, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?
While sole-source awards inherently limit price competition, cost-plus contracts typically include mechanisms like fixed-fee caps, detailed cost accounting requirements, and regular audits by the contracting officer. The Defense Contract Management Agency (DCMA) would be responsible for closely monitoring expenditures and ensuring compliance with the contract terms to mitigate cost risks.
How will the integration and testing of the INWSS equipment at these specific locations impact operational capabilities?
The Integrated Network Warfare Support System (INWSS) equipment is crucial for ensuring secure and resilient communication networks, particularly in contested environments. Its integration and testing at Kings Bay, GA, and Bangor, WA, likely enhances the operational capabilities of submarine forces or other strategic assets located there, ensuring reliable command and control.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1111 LOCKHEED MARTIN WAY BLDG 157, SUNNYVALE, CA, 94089
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,365,610
Exercised Options: $41,365,610
Current Obligation: $13,537,558
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003008G0053
IDV Type: IDC
Timeline
Start Date: 2009-02-03
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2018-06-19
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