DoD Awards $92M Lockheed Martin Contract for Fire Control Systems Support
Contract Overview
Contract Amount: $92,136,298 ($92.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-13
End Date: 2023-03-31
Contract Duration: 1,142 days
Daily Burn Rate: $80.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROVIDES FIELD AND DEPOT LEVEL SUPPORT FOR THE FIRE CONTROL SYSTEMS (FCS) AND LAUNCHER MODULES TO INCLUDE: - TRAINING, ASSET MANAGEMENT, TECHNICAL MANAGEMENT, PROGRAM MANAGEMENT
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $92.1 million to LOCKHEED MARTIN CORPORATION for work described as: PROVIDES FIELD AND DEPOT LEVEL SUPPORT FOR THE FIRE CONTROL SYSTEMS (FCS) AND LAUNCHER MODULES TO INCLUDE: - TRAINING, ASSET MANAGEMENT, TECHNICAL MANAGEMENT, PROGRAM MANAGEMENT Key points: 1. Contract focuses on critical fire control systems and launcher modules. 2. Lockheed Martin is the sole provider for this specialized support. 3. High contract value suggests significant reliance on incumbent. 4. Engineering services sector sees substantial government investment.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure allows for cost overruns, potentially impacting value. Benchmarking against similar complex engineering support contracts is difficult without more detailed cost breakdowns.
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 competition is absent.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about optimal taxpayer value and potential for inflated pricing.
Public Impact
Ensures readiness of critical defense systems. Supports advanced military technology maintenance. Impacts operational capabilities of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee can lead to cost overruns.
- Lack of transparency in pricing.
Positive Signals
- Provides essential support for critical systems.
- Leverages specialized expertise of Lockheed Martin.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for maintaining and developing complex defense technologies. Spending in this area is often driven by national security needs and technological advancements.
Small Business Impact
The data indicates no specific set-aside for small businesses. This contract, awarded to a large corporation, likely offers limited direct opportunities for small businesses unless through subcontracting.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability for performance and cost management is critical.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competition
- Potential for cost overruns
- Limited small business participation
Tags
engineering-services, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.1 million to LOCKHEED MARTIN CORPORATION. PROVIDES FIELD AND DEPOT LEVEL SUPPORT FOR THE FIRE CONTROL SYSTEMS (FCS) AND LAUNCHER MODULES TO INCLUDE: - TRAINING, ASSET MANAGEMENT, TECHNICAL MANAGEMENT, PROGRAM MANAGEMENT
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 Army).
What is the total obligated amount?
The obligated amount is $92.1 million.
What is the period of performance?
Start: 2020-02-13. End: 2023-03-31.
What is the justification for the sole-source award and has an alternatives analysis been conducted?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. An alternatives analysis is crucial to confirm that no other capable sources exist or could be developed within a reasonable timeframe, ensuring the government has explored all viable options before foregoing competition.
How are cost overruns managed and mitigated under this cost-plus-fixed-fee contract?
Cost-plus-fixed-fee contracts require robust government oversight to manage and mitigate cost overruns. This involves detailed monitoring of expenditures, regular audits, and strict adherence to the contract's scope. The fixed fee provides an incentive for the contractor to control costs, but the government must actively manage the 'cost' portion to prevent excessive spending.
What performance metrics are in place to ensure the effectiveness of the support provided?
Effectiveness is ensured through clearly defined performance metrics and service level agreements (SLAs) within the contract. These metrics might include response times for technical support, system uptime percentages, training completion rates, and successful system maintenance outcomes. Regular performance reviews and contractor evaluations are essential to track progress and address any deficiencies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q18R0140
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $112,749,062
Exercised Options: $93,163,768
Current Obligation: $92,136,298
Actual Outlays: $9,535,142
Subaward Activity
Number of Subawards: 289
Total Subaward Amount: $43,254,365
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-02-13
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2025-09-26
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