DoD Awards $27.7M for Eskan Village Communications O&M Support to Lockheed Martin
Contract Overview
Contract Amount: $27,717,437 ($27.7M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-28
End Date: 2015-04-30
Contract Duration: 1,675 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ESKAN VILLAGE COMMUNICATIONS OPERATIONS & MAINTENANCE (O&M) SUPPORT
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: ESKAN VILLAGE COMMUNICATIONS OPERATIONS & MAINTENANCE (O&M) SUPPORT Key points: 1. The contract, valued at $27.7 million, was awarded to Lockheed Martin Integrated Systems, LLC. 2. This award falls under the Engineering Services sector (NAICS 541330). 3. The contract duration was 1675 days, indicating a significant, long-term support requirement. 4. The contract type was Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Without detailed cost breakdowns and robust oversight, it's difficult to definitively assess value against benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing outcomes and how well they reflect market rates are not detailed.
Taxpayer Impact: The competitive award process is intended to ensure taxpayer funds are used efficiently, but the Cost Plus Fixed Fee structure requires diligent oversight to prevent unnecessary spending.
Public Impact
Ensures critical communications infrastructure and operations at Eskan Village remain functional. Supports Department of Defense operations in a potentially sensitive geographic area. Provides long-term employment and revenue for Lockheed Martin Integrated Systems, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts.
- Lack of detailed cost data makes value assessment challenging.
- Long duration increases potential for scope creep and cost overruns.
Positive Signals
- Awarded through full and open competition.
- Supports critical DoD communications infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector, which often involves complex technical support and maintenance. Benchmarks for similar O&M support contracts can vary widely based on scope and location.
Small Business Impact
The data indicates this contract was awarded to a large business (Lockheed Martin). There is no specific indication of small business subcontracting participation within this award notice.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the effectiveness of this oversight in controlling costs for a CPFF contract is not detailed.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of detailed cost performance data.
- Potential for cost overruns.
- Limited insight into specific performance metrics.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. ESKAN VILLAGE COMMUNICATIONS OPERATIONS & MAINTENANCE (O&M) SUPPORT
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 $27.7 million.
What is the period of performance?
Start: 2010-09-28. End: 2015-04-30.
What was the final cost compared to the initial estimate, and how did it align with industry benchmarks for similar O&M services?
The provided data does not include the final cost or initial estimate comparison. Assessing alignment with industry benchmarks for Cost Plus Fixed Fee contracts is challenging without detailed cost breakdowns and specific service scope. Further analysis would require access to the contract's financial performance reports and comparison with similar service contracts in the defense sector.
What specific risks were identified during the contract's lifecycle, and what mitigation strategies were employed by the contracting agency?
The data does not detail specific risks encountered or mitigation strategies. For a Cost Plus Fixed Fee contract of this duration, potential risks include cost overruns, scope creep, and performance issues. Effective oversight by the Defense Contract Management Agency would typically involve regular reviews, audits, and performance monitoring to identify and address these risks proactively.
How effectively did the chosen contract type (Cost Plus Fixed Fee) balance the need for flexibility with cost control for this specific O&M requirement?
The Cost Plus Fixed Fee structure allows for flexibility in adapting to unforeseen technical challenges inherent in O&M support. However, it inherently carries a higher risk of cost escalation compared to fixed-price contracts. The effectiveness hinges on robust government oversight, detailed cost tracking, and clear performance metrics to ensure value for money and prevent contractor inefficiencies from driving up costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002410R3199
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1293 PERIMETER PKWY, VIRGINIA BEACH, VA, 23454
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,627,353
Exercised Options: $34,170,640
Current Obligation: $27,717,437
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: 2010-09-28
Current End Date: 2015-04-30
Potential End Date: 2015-04-30 00:00:00
Last Modified: 2018-09-19
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