DoD Awards $30.2M for Contractor Support Services to Lockheed Martin
Contract Overview
Contract Amount: $30,221,145 ($30.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2020-09-27
Contract Duration: 366 days
Daily Burn Rate: $82.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS TASK ORDER IS FOR CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT (ICS)
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $30.2 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS TASK ORDER IS FOR CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT (ICS) Key points: 1. Significant award for contractor support services (CSS) and interim contractor support (ICS). 2. Sole-source award to Lockheed Martin Corporation, raising questions about competition. 3. The contract spans one year, indicating a need for immediate support. 4. The sector is dominated by large, established defense contractors.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar support service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $30.2M contract means taxpayers may not have received the best possible price.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of the contract. The Department of the Army relies on contractor support, highlighting potential gaps in organic capabilities. The use of Lockheed Martin suggests a reliance on established, high-cost providers for critical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical Army operations
- Utilizes a major defense contractor with established expertise
Sector Analysis
This contract falls within the Defense sector, specifically related to system and instrument manufacturing support. Spending in this area is substantial, often characterized by large, sole-source awards to prime contractors.
Small Business Impact
This award went to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific task order, which is common for large sole-source awards.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the fixed fee is reasonable and that the services provided are essential and efficiently delivered.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries risk of cost overruns.
- Lack of detailed service description hinders value assessment.
- Potential for higher costs to taxpayers due to non-competitive award.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.2 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS TASK ORDER IS FOR CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT (ICS)
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 $30.2 million.
What is the period of performance?
Start: 2019-09-27. End: 2020-09-27.
What specific services are included under Contractor Support Services (CSS) and Interim Contractor Support (ICS) to justify a sole-source award of this magnitude?
The provided data lacks specifics on the exact nature of CSS and ICS. Typically, these services can range from technical support, maintenance, logistics, to specialized operational assistance. Without further detail, it's difficult to assess if these services are so unique or time-sensitive that they necessitate a sole-source procurement from Lockheed Martin.
How was the fixed fee determined for this Cost Plus Fixed Fee contract to ensure it represents fair value?
The determination of the fixed fee for a Cost Plus Fixed Fee contract usually involves negotiation based on the contractor's estimated costs, the complexity of the work, and the level of risk involved. For this sole-source award, the government would need to perform robust cost and price analysis to ensure the fee is reasonable and reflects the expected profit for the services rendered.
What is the long-term strategy for acquiring these support services, and will future requirements be competed?
The data indicates this is a one-year task order. The long-term strategy is unclear from this data alone. Ideally, requirements that are not inherently sole-source should be competed to ensure cost savings and broader market participation. The Department of the Army should outline plans for future competition if the need for these services is ongoing.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
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: $30,221,145
Exercised Options: $30,221,145
Current Obligation: $30,221,145
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $11,109,140
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56KGY17D0005
IDV Type: IDC
Timeline
Start Date: 2019-09-27
Current End Date: 2020-09-27
Potential End Date: 2020-09-27 12:09:00
Last Modified: 2021-09-09
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