DoD awards $16.6M for Engineering Services to Lockheed Martin, a non-competed contract
Contract Overview
Contract Amount: $16,641,932 ($16.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2008-02-15
End Date: 2012-03-31
Contract Duration: 1,506 days
Daily Burn Rate: $11.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: M5/M5+ MINOR TAPE OFP
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.6 million to LOCKHEED MARTIN CORPORATION for work described as: M5/M5+ MINOR TAPE OFP Key points: 1. Significant contract value of $16.6 million. 2. Sole-source award to Lockheed Martin suggests limited competition. 3. Potential risk associated with non-competed, time-and-materials contract. 4. Engineering Services sector, NAICS 541330, often involves complex technical requirements.
Value Assessment
Rating: questionable
The contract is a time-and-materials type, which can lead to cost overruns if not managed closely. Without a competitive benchmark, assessing the pricing fairness against similar contracts is difficult.
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 the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration (2008-2012) of the contract raises questions about ongoing need and potential for re-evaluation. Reliance on a single contractor for critical engineering services could pose a risk if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and materials pricing
- Lack of competition
- Long contract duration
Positive Signals
- Award to established contractor (Lockheed Martin)
- Contract awarded by Department of Defense
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector that typically involves specialized technical expertise for defense applications. Spending in this sector can vary widely based on defense priorities and project complexity.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors on this specific delivery order.
Oversight & Accountability
The contract was a delivery order under a larger agreement. Oversight would focus on the management of the time-and-materials aspect and the delivery of required engineering services within the specified period.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Time and materials pricing structure
- Lack of competitive bidding
- Potential for cost overruns
- Long contract duration without clear re-competition
Tags
engineering-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to LOCKHEED MARTIN CORPORATION. M5/M5+ MINOR TAPE OFP
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 Air Force).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2008-02-15. End: 2012-03-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's difficult to ascertain the precise reason. However, for engineering services, it might relate to proprietary technology or specialized expertise held by Lockheed Martin that is critical for the Air Force's specific requirements.
What are the risks associated with a time-and-materials contract for engineering services?
Time-and-materials contracts carry inherent risks of cost escalation, as the final price is not fixed. For engineering services, this means the government pays for the hours worked and materials used, which can be unpredictable. Effective oversight is crucial to monitor labor hours, rates, and material costs to prevent overcharging and ensure efficient service delivery.
How does the lack of competition impact the value received by the Department of Defense?
The absence of competition generally leads to reduced price pressure, potentially resulting in the government paying a premium. Without competing bids, the Department of Defense may not achieve the most cost-effective solution. This can also limit opportunities for innovation that might arise from a more competitive marketplace.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1 LOCKHEED BLVD, FORT WORTH, TX, 76108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,641,978
Exercised Options: $16,641,978
Current Obligation: $16,641,932
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F4262001D0058
IDV Type: IDC
Timeline
Start Date: 2008-02-15
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2019-02-15
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