DoD Awards $143M to Lockheed Martin for National Cyber Range Capability

Contract Overview

Contract Amount: $142,966,679 ($143.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2014-05-26

End Date: 2019-11-25

Contract Duration: 2,009 days

Daily Burn Rate: $71.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL OPERATE AND SUSTAIN THE NATIONAL CYBER RANGE CAPABILITY WHICH IS DESIGNED TO ALLOW POTENTIALLY VIRULENT CODE TO BE INTRODUCED AND STUDIED ON THE RANGE WITHOUT COMPROMISING THE RANGE ITSELF.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $143.0 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF THE CONTRACTOR SHALL OPERATE AND SUSTAIN THE NATIONAL CYBER RANGE CAPABILITY WHICH IS DESIGNED TO ALLOW POTENTIALLY VIRULENT CODE TO BE INTRODUCED AND STUDIED ON THE RANGE WITHOUT COMPROMISING THE RANGE ITSELF. Key points: 1. Significant investment in cybersecurity infrastructure. 2. Sole-source award to Lockheed Martin raises competition questions. 3. Contract duration spans over five years. 4. Focus on secure testing of potentially harmful code.

Value Assessment

Rating: fair

The contract value of $142.97 million over five years averages to approximately $28.6 million annually. Benchmarking this against similar large-scale cyber range operations is difficult due to the specialized nature of the National Cyber Range Capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost savings typically achieved through competitive bidding processes.

Public Impact

Enhances national cybersecurity defense capabilities. Provides a secure environment for testing advanced cyber threats. Supports research and development in cyber warfare and defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
High contract value requires careful oversight.
Potential for cost overruns in cost-plus contracts.

Positive Signals

Critical national security asset.
Experienced contractor.
Addresses a vital need for cyber defense testing.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on advanced cybersecurity capabilities. The spending benchmark for similar large-scale, specialized cyber range operations is not readily available due to the unique nature of this capability.

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 sole-source award, limiting their participation.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. Given the sole-source nature and significant value, robust oversight is crucial to ensure performance and cost control.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition may lead to inflated costs.
Sole-source award requires strong justification and oversight.
Cost-plus contracts can incentivize spending.
Contract duration is substantial, requiring ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $143.0 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF THE CONTRACTOR SHALL OPERATE AND SUSTAIN THE NATIONAL CYBER RANGE CAPABILITY WHICH IS DESIGNED TO ALLOW POTENTIALLY VIRULENT CODE TO BE INTRODUCED AND STUDIED ON THE RANGE WITHOUT COMPROMISING THE RANGE ITSELF.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $143.0 million.

What is the period of performance?

Start: 2014-05-26. End: 2019-11-25.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?

The justification for the sole-source award is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Steps to ensure fair pricing in such cases often involve detailed cost analysis, negotiation, and potentially independent government cost estimates, though the effectiveness of these measures depends on the specific circumstances and available data.

What are the key performance metrics for the National Cyber Range Capability, and how is contractor performance being measured?

Key performance metrics for the National Cyber Range Capability would likely include the successful operation and sustainment of the range, its ability to safely introduce and study potentially virulent code, and the security of the range itself. Contractor performance is typically measured against contract requirements, including uptime, successful simulation execution, and adherence to security protocols, often detailed in a Performance Work Statement (PWS).

What is the long-term strategy for the National Cyber Range Capability, and how does this contract align with future cyber defense needs?

The long-term strategy for the National Cyber Range Capability likely involves continuous modernization to keep pace with evolving cyber threats and technologies. This contract, focusing on operation and sustainment, ensures the current capability remains functional and effective. Future needs might necessitate upgrades or expansions, which would be addressed through subsequent contract actions or modifications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK13R0013

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $146,140,494

Exercised Options: $146,140,494

Current Obligation: $142,966,679

Subaward Activity

Number of Subawards: 91

Total Subaward Amount: $28,535,257

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline