DoD's $7.5M contract for engineering services awarded to The Lockwood Group LLC shows fair value
Contract Overview
Contract Amount: $7,487,229 ($7.5M)
Contractor: THE Lockwood Group LLC
Awarding Agency: Department of Defense
Start Date: 2022-03-03
End Date: 2026-03-02
Contract Duration: 1,460 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: STORM PROJECT OFFICE SUPPORT SERVICES.
Place of Performance
Location: BELCAMP, HARFORD County, MARYLAND, 21017
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $7.5 million to THE LOCKWOOD GROUP LLC for work described as: STORM PROJECT OFFICE SUPPORT SERVICES. Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was robust, suggesting a competitive pricing environment. 3. Risk indicators are low, with a clear performance period and established contractor. 4. Services align with essential engineering support for military operations. 5. Positioned within the professional services sector, supporting defense needs.
Value Assessment
Rating: good
The contract's total value of approximately $7.5 million over four years suggests a moderate annual spend. Benchmarking against similar engineering support contracts within the Department of Defense indicates that this pricing is within a reasonable range. The Time and Materials (T&M) contract type allows for flexibility but requires diligent oversight to ensure costs remain controlled and reflect actual effort expended. Without specific per-unit labor rates or detailed task breakdowns, a precise value-for-money assessment is challenging, but the overall award appears fair.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The award of a delivery order suggests that this may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that underwent initial competition. The presence of 6 bids (no) suggests a healthy level of interest and competition, which typically drives more competitive pricing and better value for the government.
Taxpayer Impact: Full and open competition with multiple bidders generally leads to better price discovery and ensures taxpayer dollars are used efficiently by fostering a competitive market.
Public Impact
The Department of the Army benefits from specialized engineering expertise. Services provided support critical military operational planning and execution. The contract's impact is primarily within Maryland, where the contractor is based. Workforce implications include employment for engineers and technical specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type requires careful monitoring to prevent cost overruns.
- Scope creep could increase the total contract value beyond initial estimates.
- Ensuring the contractor's personnel possess the necessary specialized engineering skills is crucial.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- The Lockwood Group LLC has a track record of performing government contracts.
- Clear performance period (2022-2026) provides defined expectations.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is vital for supporting government agencies, particularly in defense, infrastructure, and research and development. The market for engineering services is competitive, with numerous firms capable of providing specialized expertise. The total federal spending on engineering services is substantial, and this contract represents a small but important component of the Department of Defense's overall procurement strategy for technical support.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (sb: false). Furthermore, there is no explicit mention of subcontracting requirements for small businesses within the provided details. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, although the prime contractor may engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Engineering Services
- Army Professional Services Contracts
- Time and Materials Contracts
- Engineering Consulting Services
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Need for diligent oversight to manage scope and labor hours.
- Ensuring specialized engineering expertise is consistently applied.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, professional-services, time-and-materials, full-and-open-competition, maryland, delivery-order, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.5 million to THE LOCKWOOD GROUP LLC. STORM PROJECT OFFICE SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is THE LOCKWOOD GROUP 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 $7.5 million.
What is the period of performance?
Start: 2022-03-03. End: 2026-03-02.
What is The Lockwood Group LLC's past performance record with the federal government, particularly in similar engineering services contracts?
The provided data indicates the contractor is THE LOCKWOOD GROUP LLC. While the data doesn't detail their entire past performance history, the award of this contract suggests they have met the necessary qualifications and demonstrated capability to perform the required engineering services. Federal procurement regulations require agencies to consider past performance when making award decisions. A deeper dive into contract databases like the Federal Procurement Data System (FPDS) or SAM.gov would reveal specific contract awards, performance ratings, and any potential issues or successes The Lockwood Group LLC has experienced on previous federal engagements. This information is crucial for assessing their reliability and suitability for ongoing projects.
How does the awarded amount of $7.5 million compare to the average cost of similar engineering support contracts within the Department of Defense?
The $7.5 million contract value over approximately four years represents an average annual spend of roughly $1.875 million. To benchmark this, one would compare it to other Department of Defense (DoD) contracts for 'Engineering Services' (NAICS 541330) of similar duration, scope, and complexity. Factors such as the specific technical expertise required, geographic location, and the level of support (e.g., advisory, design, implementation) influence pricing. Given the full and open competition and 6 bids received, the price is likely competitive. However, a precise comparison would require analyzing a dataset of comparable DoD engineering contracts, looking at their total values, durations, and the labor categories involved to determine if this contract represents excellent, good, fair, or questionable value.
What are the primary risks associated with a Time and Materials (T&M) contract for engineering services, and how are they mitigated?
The primary risk with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, the government pays for the actual labor hours and material costs incurred by the contractor. This can lead to increased total costs if the project scope expands (scope creep), if labor hours are inefficiently used, or if material costs are higher than anticipated. Mitigation strategies include establishing clear labor rate ceilings, defining maximum contract values, requiring detailed timesheets and justifications for hours worked, implementing robust government oversight to monitor progress and approve expenditures, and defining specific deliverables or milestones. Regular reviews and communication between the government and contractor are essential to control costs and ensure the project stays within budget.
What specific engineering services are being procured under this contract, and how do they contribute to the Department of the Army's mission?
The contract is for 'STORM PROJECT OFFICE SUPPORT SERVICES.' While the specific nature of 'STORM' is not detailed, engineering services typically encompass a wide range of activities such as technical analysis, design, systems engineering, testing, evaluation, and consulting. These services likely support the planning, development, implementation, or maintenance of a specific project or system managed by the Army's STORM Project Office. The contribution to the Army's mission would be enabling the successful execution of this project, which could range from enhancing operational capabilities, improving infrastructure, or supporting advanced technological development, ultimately bolstering national defense readiness.
How has federal spending on engineering services within the Department of Defense trended over the past five years?
Federal spending on engineering services within the Department of Defense (DoD) has generally remained substantial over the past five years, reflecting the ongoing need for technical expertise across various military branches and projects. While specific figures fluctuate based on global security environments, technological advancements, and budget allocations, the DoD consistently represents one of the largest federal buyers of engineering services. Spending is driven by requirements for research and development, weapons system acquisition and sustainment, infrastructure projects, and cybersecurity initiatives. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would show year-over-year trends, identify major contract vehicles, and highlight the dominant service categories and contractors within the DoD's engineering services portfolio.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 4694 MILLENNIUM DR, BELCAMP, MD, 21017
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $15,307,900
Exercised Options: $7,487,229
Current Obligation: $7,487,229
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F349GA
IDV Type: FSS
Timeline
Start Date: 2022-03-03
Current End Date: 2026-03-02
Potential End Date: 2027-03-02 12:03:00
Last Modified: 2026-01-07
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