DoD Awards $9.2M Engineering Services Contract to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $9,227,939 ($9.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-12-12
End Date: 2026-06-30
Contract Duration: 2,392 days
Daily Burn Rate: $3.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INDONESIA PPSS IDIQ
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $9.2 million to LOCKHEED MARTIN CORPORATION for work described as: INDONESIA PPSS IDIQ Key points: 1. Significant contract value awarded without competition. 2. Lockheed Martin is a major defense contractor, indicating potential for large-scale projects. 3. The contract spans engineering services, a critical but broad category. 4. Risk of inflated pricing due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract's value of $9.2M for engineering services is substantial. Without competitive data, it's difficult to assess if this pricing is optimal compared to similar contracts. The lack of competition raises concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these engineering services, as the government did not leverage market forces to secure the most cost-effective solution.
Public Impact
Taxpayers may be overpaying for engineering services due to the sole-source nature of the award. Lack of transparency in the procurement process raises questions about fairness and efficiency. Potential for reduced innovation if competitive pressures are absent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Contract awarded to a reputable large business
- Clear service category (Engineering Services)
Sector Analysis
Engineering services are crucial for defense projects, encompassing design, analysis, and technical support. The benchmark for such contracts varies widely based on complexity and duration. This $9.2M award for a nearly 2-year period suggests a significant project.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing the contract is needed to ensure accountability and responsible use of taxpayer funds.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to no competition.
- Limited transparency in procurement.
- No small business participation evident.
Tags
engineering-services, department-of-defense, fl, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.2 million to LOCKHEED MARTIN CORPORATION. INDONESIA PPSS IDIQ
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 $9.2 million.
What is the period of performance?
Start: 2019-12-12. End: 2026-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a strong justification, such as unique capabilities, urgent need, or lack of available sources. Without this justification, it's impossible to assess if the government adequately explored competitive options or if this was the most efficient procurement method.
How does the $9.2M contract value compare to industry benchmarks for similar engineering services over a 2392-day period?
Benchmarking this $9.2M contract against industry standards for engineering services over approximately 6.5 years (2392 days) is challenging without more specific details on the services rendered. However, given the lack of competition, there's a heightened risk that the price may exceed typical market rates for comparable services.
What mechanisms are in place to ensure the effectiveness and quality of engineering services provided by Lockheed Martin under this sole-source contract?
While the contract type is 'FIRM FIXED PRICE', which shifts some cost risk to the contractor, oversight is still crucial for sole-source awards. The Department of Defense and Department of the Army should have performance monitoring systems in place to track progress, quality, and adherence to technical specifications to ensure effective service delivery.
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: $9,227,939
Exercised Options: $9,227,939
Current Obligation: $9,227,939
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $72,094
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: 2019-12-12
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-12-19
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