DoD's $39M contract for base car technical support awarded to Lockheed Martin Services, LLC
Contract Overview
Contract Amount: $39,277,600 ($39.3M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-06-29
End Date: 2016-12-31
Contract Duration: 2,377 days
Daily Burn Rate: $16.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PREDOMINANT BASE CAR. GETS TECHNICAL SUPPORT.
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $39.3 million to LOCKHEED MARTIN SERVICES, LLC for work described as: PREDOMINANT BASE CAR. GETS TECHNICAL SUPPORT. Key points: 1. Contract awarded to a single, large business, raising questions about broader market engagement. 2. Significant duration of 2377 days suggests a long-term need for these services. 3. The 'Other Measuring and Controlling Device Manufacturing' NAICS code is broad and may obscure specific service details. 4. High contract value indicates substantial investment in this specific technical support area.
Value Assessment
Rating: fair
The contract value of $39.3M over approximately 6.5 years averages around $6M annually. Without specific benchmarks for 'base car technical support,' it's difficult to definitively assess pricing, but the firm fixed-price structure offers some cost control.
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 compared to a competitive environment. The rationale for sole-sourcing is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these technical support services.
Public Impact
Military readiness may depend on the effective functioning of 'base cars' and their associated technical support. The long contract duration implies a sustained need for these services, impacting long-term budget planning. Lack of competition raises concerns about potential inefficiencies and higher costs for taxpayers. The specific nature of the 'base car' and its technical support is unclear to the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Unclear service details
Positive Signals
- Firm fixed-price contract
- Long-term commitment
Sector Analysis
The Department of Defense frequently procures technical support services across various sectors. Benchmarks for 'Other Measuring and Controlling Device Manufacturing' are difficult to establish due to the broad NAICS code, but large, long-term contracts like this are common for specialized support.
Small Business Impact
This contract was awarded to a large business and there is no indication of small business participation. Opportunities for small businesses in providing similar technical support services may have been missed.
Oversight & Accountability
The sole-source nature of this contract warrants further oversight to ensure fair pricing and effective service delivery. Accountability for the decision not to compete is crucial.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of competition.
- Lack of transparency regarding service specifics.
- No small business participation noted.
- Long contract duration without clear justification for sole-sourcing.
Tags
other-measuring-and-controlling-device-m, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.3 million to LOCKHEED MARTIN SERVICES, LLC. PREDOMINANT BASE CAR. GETS TECHNICAL SUPPORT.
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 $39.3 million.
What is the period of performance?
Start: 2010-06-29. End: 2016-12-31.
What specific 'base cars' are covered by this technical support contract, and what is the criticality of their function to DoD operations?
The provided data does not specify the type of 'base cars' or their operational criticality. This information is essential for understanding the value and necessity of the $39.3M contract. Without this context, assessing the true impact and justification for the expenditure is challenging.
What was the justification for awarding this contract on a sole-source basis rather than through full and open competition?
The data indicates the contract was 'NOT COMPETED,' implying a sole-source award. The rationale behind this decision is not provided. Typically, sole-sourcing is justified by factors like urgency, unique capabilities, or lack of available sources. Without this justification, it's difficult to assess if competition was genuinely not feasible or if potential cost savings were forgone.
How does the annual cost of this technical support contract compare to industry benchmarks for similar services, considering the firm fixed-price structure?
The contract's annual value is approximately $6M ($39.3M / 6.5 years). While the firm fixed-price structure provides some cost certainty, comparing this to industry benchmarks is difficult without knowing the precise nature of the 'technical support' and the 'base cars' involved. The broad NAICS code further complicates benchmarking.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,277,600
Exercised Options: $39,277,600
Current Obligation: $39,277,600
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-06-29
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 12:12:00
Last Modified: 2015-10-29
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