DoD Awards $115M for Missile and Space Systems Support to Lockheed Martin Services Inc

Contract Overview

Contract Amount: $11,528,311 ($11.5M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2004-02-13

End Date: 2010-12-31

Contract Duration: 2,513 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200408!001685!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q04C0056 !A!N! !N! ! !20040213!20070404!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!12310!007!34!CHERRY HILL !CAMDEN !NEW JERSEY!+000002857523!Y!N!000000000000!4935!GUIDED MISSILE MAINT, RPR, & CHKOUT SPECILIZED EQ !A2 !MISSILE AND SPACE SYSTEMS !000 !* !334519!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!00 !A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to LOCKHEED MARTIN SERVICES, LLC for work described as: 200408!001685!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q04C0056 !A!N! !N! ! !20040213!20070404!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!12310!007!34!CHERRY HILL !CAMD… Key points: 1. Contract awarded to a single, established provider, raising questions about competition. 2. Significant contract value suggests a critical need for missile and space systems maintenance. 3. The duration of the contract (over 7 years) indicates a long-term requirement. 4. Focus on specialized equipment maintenance points to a niche but vital defense capability.

Value Assessment

Rating: questionable

The contract value of $115M over approximately 7.7 years averages to about $14.9M annually. Without specific benchmarks for 'Guided Missile Maintenance, Repair, and Checkout Specialized Equipment', it's difficult to definitively assess pricing, but the lack of competition raises concerns.

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 competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these specialized missile and space systems services.

Public Impact

Ensures continued operational readiness of critical missile and space systems. Supports national security by maintaining advanced defense technology. Potential for higher costs due to lack of competitive bidding. Impact on smaller businesses in the defense supply chain is unclear without further data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration without clear performance metrics.
Lack of transparency in pricing justification.

Positive Signals

Addresses a critical defense need for specialized equipment.
Utilizes an experienced contractor with established capabilities.

Sector Analysis

This contract falls under the 'Other Measuring and Controlling Device Manufacturing' sector, specifically related to defense. Spending in this niche area is often characterized by high technical requirements and limited contractor pools, making competition challenging.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract. The award to a large prime contractor like Lockheed Martin suggests limited direct opportunities for small businesses unless they are subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability would involve tracking performance metrics and comparing costs against any available industry benchmarks.

Related Government Programs

Other Measuring and Controlling Device Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency
No clear small business participation
Long-term commitment without competitive re-evaluation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to LOCKHEED MARTIN SERVICES, LLC. 200408!001685!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q04C0056 !A!N! !N! ! !20040213!20070404!805258373!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !2339 ROUTE 70 WEST, FLOOR !CHERRY HILL !NJ!08002!12310!007!34!CHERRY HILL !CAMDEN !NEW JERSEY!+000002857523!Y!N!000000000000!4935!GUIDED MISSILE MAINT, RPR, & CHKOUT SPECILIZED EQ !A2 !MISSILE AND SPACE SYSTEMS !000 !* !334519!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2004-02-13. End: 2010-12-31.

What is the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Agencies must document thorough market research to confirm no other sources exist or can be developed in time. Alternative solutions might include breaking down the requirement, seeking new vendors, or exploring different technological approaches, but these are often deemed impractical in specialized defense contexts.

How does the pricing structure compare to similar specialized missile maintenance contracts, if available?

Without access to proprietary data or specific industry benchmarks for 'Guided Missile Maintenance, Repair, and Checkout Specialized Equipment,' a direct pricing comparison is difficult. However, sole-source contracts inherently lack the downward price pressure of competition. Therefore, vigilance in scrutinizing cost elements, labor rates, and overhead is crucial to ensure the $115M award represents fair value, even without competitive benchmarks.

What performance metrics are in place to ensure the effectiveness of Lockheed Martin's services over the contract's duration?

Effective oversight requires clearly defined performance metrics (e.g., turnaround time for repairs, quality of checks, equipment uptime). These metrics should be contractually stipulated and regularly monitored by the government. Without such metrics, ensuring the effectiveness of the specialized maintenance and repair services provided by Lockheed Martin becomes challenging, potentially impacting the readiness of critical defense assets.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: DAAH0103R0320

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline