DoD Awards $28M Engineering Services Task Order to Lockheed Martin for MTADS PPSS UAE
Contract Overview
Contract Amount: $27,993,725 ($28.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-04-28
End Date: 2026-06-30
Contract Duration: 2,620 days
Daily Burn Rate: $10.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MTADS PPSS UAE TASK ORDER
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $28.0 million to LOCKHEED MARTIN CORPORATION for work described as: MTADS PPSS UAE TASK ORDER Key points: 1. Significant contract value of $27.99 million. 2. Sole-source award to Lockheed Martin Corporation. 3. Long performance period extending to June 2026. 4. Engineering Services sector, NAICS 541330.
Value Assessment
Rating: questionable
Benchmarking is difficult without specific details on the engineering services provided. The firm fixed price contract type suggests cost certainty, but the lack of competition raises concerns about whether the price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The lack of competition in this sole-source award potentially leads to higher taxpayer costs due to the absence of market-driven price reductions.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of the award. The long duration of the contract could lock in potentially suboptimal pricing. Lack of transparency in the procurement process due to no competition. Potential for cost overruns if not closely monitored despite fixed price.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Firm fixed price contract type
- Clear task order for specific services
Sector Analysis
This contract falls under Engineering Services, a broad category often involving complex technical solutions. Spending in this sector can vary widely based on project scope and criticality. Benchmarking requires detailed service descriptions.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source task order, limiting opportunities for them.
Oversight & Accountability
Oversight will be critical to ensure Lockheed Martin delivers the required engineering services effectively and within the allocated budget, especially given the sole-source nature of the award. The Department of the Army is the contracting agency.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration may not reflect current market rates.
- Lack of transparency in procurement process.
- Potential for cost overruns if oversight is insufficient.
- Limited opportunity for small business participation.
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.0 million to LOCKHEED MARTIN CORPORATION. MTADS PPSS UAE TASK ORDER
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 $28.0 million.
What is the period of performance?
Start: 2019-04-28. End: 2026-06-30.
What specific engineering services are being procured under this task order, and how do they align with the Department of the Army's strategic objectives?
The task order is for MTADS PPSS UAE, which likely refers to specific systems or programs within the United Arab Emirates. Without further declassification or details, the exact nature of the engineering services remains unclear. However, such contracts typically involve design, analysis, testing, or integration support for complex defense systems, crucial for maintaining operational readiness and technological superiority.
What justification was provided for the sole-source award to Lockheed Martin, and were alternative solutions or vendors considered?
Sole-source justifications typically cite reasons such as unique capabilities, proprietary technology, or urgent requirements where only one vendor can meet the need. For this contract, the justification likely stems from Lockheed Martin's established role or unique expertise related to the MTADS PPSS UAE program. A thorough review would confirm if alternatives were genuinely non-viable or if competition was forgone for other reasons.
How will the Department of the Army ensure cost-effectiveness and value for money given the absence of competitive bidding?
The Department of the Army must implement rigorous contract management and oversight. This includes detailed performance monitoring, verifying deliverables against the firm fixed price, and potentially conducting post-award price analyses if discrepancies arise. Strong negotiation skills and clear performance metrics are essential to mitigate the risks associated with non-competitive awards and ensure taxpayer funds are used efficiently.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
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: $27,993,725
Exercised Options: $27,993,725
Current Obligation: $27,993,725
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $718,147
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J19D0006
IDV Type: IDC
Timeline
Start Date: 2019-04-28
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-12-15
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