DoD awards $31.3M task order to Lockheed Martin for engineering services in Florida
Contract Overview
Contract Amount: $31,304,138 ($31.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-05-01
End Date: 2027-02-28
Contract Duration: 2,860 days
Daily Burn Rate: $10.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MTADS PPSS KOREA TASK ORDER
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.3 million to LOCKHEED MARTIN CORPORATION for work described as: MTADS PPSS KOREA TASK ORDER Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Engineering services are critical for ongoing defense operations and modernization. 3. The contract duration extends over several years, indicating a long-term need. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The awardee is a major defense contractor with extensive experience. 6. Geographic focus on Florida suggests support for specific military installations or projects.
Value Assessment
Rating: fair
The total value of $31.3 million for engineering services over nearly 8 years suggests a moderate annual spend. Without specific deliverables or comparable sole-source contracts, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides some cost certainty for the government. Benchmarking against similar sole-source engineering contracts within the Department of Defense would be necessary for a more robust evaluation of pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price.
Public Impact
The Department of Defense benefits from specialized engineering expertise. Services likely support military readiness and operational capabilities. The contract's impact is concentrated in Florida, potentially supporting local military bases and related infrastructure. The contract may sustain jobs within Lockheed Martin's engineering workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing.
- Sole-source awards can create vendor lock-in.
- Performance risks are not fully mitigated without competitive pressure.
Positive Signals
- Fixed-price contract type provides cost predictability.
- Awardee is a reputable and experienced defense contractor.
- Long contract duration suggests a sustained and critical need.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for defense engineering services is dominated by a few large, established contractors. Spending in this area is driven by the need for specialized technical expertise in areas such as system design, integration, testing, and maintenance for complex military platforms. Benchmarks for similar engineering services contracts within the DoD can vary widely based on scope and duration.
Small Business Impact
There is no indication that this contract included small business set-asides. As a sole-source award to a large prime contractor, it is unlikely to directly benefit small businesses through subcontracting opportunities unless explicitly mandated. The absence of a competitive bidding process further reduces the likelihood of small business participation.
Oversight & Accountability
The Department of Defense has established oversight mechanisms for task orders, including contract closeout procedures and performance reviews. However, the sole-source nature of this award limits the transparency typically afforded by a competitive process. Accountability will primarily rest on the contractor's adherence to the fixed-price terms and the government's contract management team's oversight of performance and deliverables.
Related Government Programs
- Department of Defense Engineering Services
- Lockheed Martin Defense Contracts
- Florida Defense Spending
Risk Flags
- Sole-source award
- Potential for higher costs due to lack of competition
Tags
defense, department-of-defense, department-of-the-army, engineering-services, lockheed-martin-corporation, sole-source, firm-fixed-price, task-order, delivery-order, florida, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.3 million to LOCKHEED MARTIN CORPORATION. MTADS PPSS KOREA 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 $31.3 million.
What is the period of performance?
Start: 2019-05-01. End: 2027-02-28.
What specific engineering services are being provided under this task order?
The provided data indicates the contract is for 'Engineering Services' (NAICS 541330) awarded to Lockheed Martin Corporation by the Department of the Army. However, the specific nature of these services is not detailed in the provided data. Typically, engineering services in a defense context can encompass a wide range of activities, including but not limited to system design, development, integration, testing, analysis, and technical support for military equipment, platforms, or infrastructure. Without access to the contract's Statement of Work (SOW), it is impossible to determine the precise technical tasks, deliverables, or the specific engineering disciplines involved. Further investigation into the contract details or related documentation would be required to ascertain the exact services rendered.
How does the $31.3 million value compare to similar sole-source engineering contracts for the Department of the Army?
Benchmarking the $31.3 million value of this sole-source task order against similar contracts requires access to a comprehensive database of federal procurement data, specifically filtering for sole-source engineering services contracts awarded by the Department of the Army over a comparable timeframe and duration. The provided data indicates a contract duration of approximately 2.8 years (from May 1, 2019, to February 28, 2027), with a total value of $31.3 million. This translates to an average annual value of roughly $11.2 million. Without comparative data on the scope, complexity, and specific services of other sole-source contracts, it is difficult to definitively state whether this represents a high, low, or average expenditure. However, given Lockheed Martin's status as a major defense contractor, the value is plausible for specialized engineering support.
What are the primary risks associated with a sole-source award for engineering services?
The primary risks associated with a sole-source award for engineering services include potential overpricing due to the lack of competitive bidding, reduced incentive for the contractor to innovate or optimize costs, and the risk of vendor lock-in, making it difficult to switch providers in the future. Without competition, the government may not achieve the best possible value for its investment. There's also a risk that the contractor may not be as responsive to government needs or may prioritize their own business interests over those of the agency. Furthermore, the absence of multiple bids can obscure potential performance issues or technical limitations that might have been revealed during a competitive evaluation process.
What is Lockheed Martin Corporation's track record with the Department of the Army for engineering services?
Lockheed Martin Corporation is a major defense contractor with a long-standing and extensive track record of providing a wide array of services, including engineering, to the Department of the Army and other branches of the U.S. military. Their history includes the development, production, and sustainment of complex defense systems. While specific performance metrics for this particular task order are not detailed here, Lockheed Martin generally possesses significant experience and established processes for delivering engineering solutions. However, as with any large contractor, past performance can vary across different contracts and programs. A thorough review would involve examining past performance evaluations and any documented issues or successes related to similar contracts.
How does the fixed-price contract type affect risk and cost certainty for this engineering services task order?
The Firm Fixed Price (FFP) contract type, as indicated for this task order, shifts the majority of the performance risk from the government to the contractor, Lockheed Martin Corporation. This means that the contractor is obligated to complete the work for the agreed-upon price, regardless of any cost overruns they may incur. This provides a high degree of cost certainty for the government, as the total expenditure is known upfront. For the contractor, it creates a strong incentive to manage costs efficiently and perform the work effectively to maximize profit. However, if the scope of work changes significantly, a change order process would be initiated, potentially impacting the fixed price. The risk for the government lies in ensuring the initial price was fair and reasonable, and that the contractor has the capability to deliver within that fixed price.
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: $31,304,138
Exercised Options: $31,304,138
Current Obligation: $31,304,138
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $605,409
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: 2019-05-01
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 12:02:00
Last Modified: 2025-12-30
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