DoD Awards $167.8M for IAMD Battle Command System Maintenance and Optimization to Lockheed Martin
Contract Overview
Contract Amount: $16,782,233 ($16.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-06-20
End Date: 2025-12-21
Contract Duration: 549 days
Daily Burn Rate: $30.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: INTEGRATED AIR AND MISSILE DEFENSE (IAMD) BATTLE COMMAND SYSTEM (IBCS) FIRE CONTROL (FC) MAINTENANCE AND OPTIMIZATION
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to LOCKHEED MARTIN CORPORATION for work described as: INTEGRATED AIR AND MISSILE DEFENSE (IAMD) BATTLE COMMAND SYSTEM (IBCS) FIRE CONTROL (FC) MAINTENANCE AND OPTIMIZATION Key points: 1. Contract focuses on critical Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS) Fire Control. 2. Sole-source award to Lockheed Martin Corporation, a major defense contractor. 3. Potential for cost overruns due to Cost Plus Incentive Fee contract type. 4. Spending falls under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The Cost Plus Incentive Fee structure can lead to higher-than-expected costs if performance targets are not met efficiently. Benchmarking per-unit costs for this specialized system is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition and the incentive fee structure, which could inflate the final price.
Public Impact
Ensures continued operational readiness of a key missile defense system. Supports advanced technological capabilities for national security. Potential for cost growth impacts overall defense budget allocation. Limited transparency on specific optimization outcomes for the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Incentive Fee contract type carries cost overrun risk.
- Lack of detailed performance metrics for optimization.
Positive Signals
- Maintains critical defense system functionality.
- Supports advanced technological capabilities.
- Contract awarded to incumbent provider, ensuring continuity.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to defense systems. Spending benchmarks for specialized command and control systems are highly variable and dependent on system complexity and scope.
Small Business Impact
There is no indication of small business participation in this sole-source award. The prime contractor, Lockheed Martin, is a large defense corporation, suggesting subcontracting opportunities may exist but are not explicitly detailed in this award notice.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will be crucial to manage the Cost Plus Incentive Fee structure and ensure the optimization efforts deliver value for the investment, especially given the sole-source nature of the award.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost Plus Incentive Fee contract type increases risk of cost overruns.
- Lack of transparency on specific optimization deliverables.
- Potential for contractor to prioritize profit over efficiency.
- Limited public information on system performance benchmarks.
Tags
all-other-professional-scientific-and-te, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to LOCKHEED MARTIN CORPORATION. INTEGRATED AIR AND MISSILE DEFENSE (IAMD) BATTLE COMMAND SYSTEM (IBCS) FIRE CONTROL (FC) MAINTENANCE AND OPTIMIZATION
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 $16.8 million.
What is the period of performance?
Start: 2024-06-20. End: 2025-12-21.
What specific performance metrics will be used to evaluate the 'optimization' of the IBCS Fire Control system under this contract, and how will they ensure value for money?
The contract details should outline specific, measurable, achievable, relevant, and time-bound (SMART) goals for the optimization efforts. These metrics would likely focus on improvements in system speed, reliability, accuracy, and reduced maintenance downtime. Effective oversight by the Department of the Army is crucial to ensure these metrics are rigorously tracked and that the contractor is incentivized to achieve genuine performance enhancements rather than simply incurring costs.
Given the sole-source nature, what steps are being taken to mitigate the risk of inflated pricing and ensure fair market value is being paid for the maintenance and optimization services?
While a sole-source award inherently limits competitive pressure, the government can employ several strategies. This includes robust cost analysis, benchmarking against similar (though not identical) systems or past contracts, and negotiating stringent incentive fee targets. Independent technical reviews of the proposed work and cost proposals are also vital. The contracting officer must justify the sole-source determination and demonstrate that the negotiated price is fair and reasonable based on available data.
How will the effectiveness of the IBCS Fire Control system's maintenance and optimization be measured in terms of its contribution to overall Integrated Air and Missile Defense capabilities?
Effectiveness will be measured by the system's improved performance in real-world or simulated scenarios, such as faster target acquisition, more accurate engagement, enhanced system resilience against electronic warfare, and reduced false alarm rates. This requires integrating feedback from operational units and potentially conducting joint exercises. The ultimate measure is the system's demonstrated ability to contribute to the successful defense against air and missile threats.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $16,782,233
Exercised Options: $16,782,233
Current Obligation: $16,782,233
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W31P4Q22G0003
IDV Type: BOA
Timeline
Start Date: 2024-06-20
Current End Date: 2025-12-21
Potential End Date: 2025-12-21 12:12:00
Last Modified: 2025-09-29
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