DoD's $68.5M contract for digital range training systems awarded to Lockheed Martin, with 56 bids received
Contract Overview
Contract Amount: $68,541,249 ($68.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-03-28
End Date: 2022-07-31
Contract Duration: 1,221 days
Daily Burn Rate: $56.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTINUOUS TECHNICAL REFRESHES OF DIGITAL RANGE TRAINING SYSTEMS AT DONNELLY TRAINING AREA, AK, FORT BLISS, TX, FORT CARSON, CO, FORT HOOD, TX, FORT RILEY, KS, GRAF, GERMANY AND YAKIMA, WA; AND NEW DRTS FIELDING AT FORT KNOX, KY AND ORCHARD TRAINING RANGE CENTER, ID.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $68.5 million to LOCKHEED MARTIN CORPORATION for work described as: CONTINUOUS TECHNICAL REFRESHES OF DIGITAL RANGE TRAINING SYSTEMS AT DONNELLY TRAINING AREA, AK, FORT BLISS, TX, FORT CARSON, CO, FORT HOOD, TX, FORT RILEY, KS, GRAF, GERMANY AND YAKIMA, WA; AND NEW DRTS FIELDING AT FORT KNOX, KY AND ORCHARD TRAINING RANGE CENTER, ID. Key points: 1. Value for money appears reasonable given the scope of continuous technical refreshes and new fielding across multiple domestic and international locations. 2. Strong competition with 56 bids indicates a healthy market for these specialized training systems. 3. Risk indicators are moderate, with potential for performance issues due to the complexity of integrating systems across diverse locations. 4. Performance context suggests a need for robust project management to ensure timely and effective upgrades. 5. Sector positioning places this contract within the defense training and simulation market, a critical area for military readiness.
Value Assessment
Rating: good
The contract value of $68.5 million for continuous technical refreshes and new fielding of digital range training systems across multiple installations appears to be a fair investment. Benchmarking against similar large-scale defense modernization contracts suggests that the pricing is competitive, especially considering the scope and duration. The firm-fixed-price nature of the contract provides cost certainty for the government, although it places the performance risk on the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with a significant 56 bids received. This high level of competition is a positive indicator, suggesting that the market has multiple capable providers for digital range training systems. The extensive bidding process likely contributed to competitive pricing and a wider range of technical solutions being considered by the Department of the Army.
Taxpayer Impact: The robust competition ensures that taxpayer dollars are being used efficiently, as the government was able to solicit and receive numerous proposals, driving down costs and fostering innovation.
Public Impact
Service members at Donnelly Training Area, AK, Fort Bliss, TX, Fort Carson, CO, Fort Hood, TX, Fort Riley, KS, Graf, Germany, Yakima, WA, Fort Knox, KY, and Orchard Training Range Center, ID, will benefit from enhanced training capabilities. The contract delivers continuous technical refreshes and new fielding of digital range training systems, improving the realism and effectiveness of military exercises. The geographic impact is widespread, covering multiple key training installations within the United States and one in Germany. Workforce implications include potential for specialized technical jobs in system integration, maintenance, and training support for the contractor and potentially government personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for integration challenges across diverse system architectures and geographic locations.
- Ensuring consistent performance and reliability of refreshed systems across all sites.
- Managing the lifecycle of technology refreshes to avoid obsolescence.
Positive Signals
- High number of bids indicates strong market interest and potential for robust solutions.
- Continuous refreshes ensure training systems remain current with evolving threats and technologies.
- Firm-fixed-price contract provides budget predictability for the government.
Sector Analysis
The defense training and simulation sector is a critical component of military readiness, encompassing a wide range of technologies from virtual reality simulators to complex live-fire range systems. This contract falls within the broader category of defense electronics and specialized equipment manufacturing. The market is characterized by a few large prime contractors and numerous specialized subcontractors. Spending in this sector is driven by the need for realistic, cost-effective, and safe training environments.
Small Business Impact
While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions, the high number of bidders suggests opportunities for small businesses to participate as subcontractors. Large defense contractors like Lockheed Martin often rely on a network of smaller, specialized firms for components and services, potentially creating subcontracting opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices responsible for training systems. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified systems and services. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Training Support Systems
- Live Fire Range Modernization
- Military Simulation and Training Equipment
- Defense Readiness Programs
- Digital Warfare Training
Risk Flags
- Potential for integration complexity across multiple sites.
- Ensuring consistent performance and reliability of updated systems.
- Managing technology lifecycle to avoid obsolescence.
Tags
defense, department-of-defense, department-of-the-army, lockheed-martin-corporation, firm-fixed-price, full-and-open-competition, training-systems, simulation, digital-range, continuous-refresh, multi-site, us-army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.5 million to LOCKHEED MARTIN CORPORATION. CONTINUOUS TECHNICAL REFRESHES OF DIGITAL RANGE TRAINING SYSTEMS AT DONNELLY TRAINING AREA, AK, FORT BLISS, TX, FORT CARSON, CO, FORT HOOD, TX, FORT RILEY, KS, GRAF, GERMANY AND YAKIMA, WA; AND NEW DRTS FIELDING AT FORT KNOX, KY AND ORCHARD TRAINING RANGE CENTER, ID.
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 $68.5 million.
What is the period of performance?
Start: 2019-03-28. End: 2022-07-31.
What is Lockheed Martin's track record with similar digital range training systems contracts?
Lockheed Martin Corporation has a significant history of providing advanced technology solutions to the Department of Defense, including complex training and simulation systems. While specific details on past performance for 'Digital Range Training Systems' are not provided in this data snippet, the company is a major defense contractor with extensive experience in areas such as avionics, command and control, and simulation. Their involvement in large-scale, multi-site projects is common. A deeper dive into their contract performance history, including any past issues or successes with similar systems, would be necessary for a comprehensive assessment. However, their status as a prime contractor on this significant award suggests a level of confidence from the Department of the Army based on prior experience or capabilities.
How does the $68.5 million cost compare to similar range modernization efforts?
The $68.5 million cost for continuous technical refreshes and new fielding of digital range training systems across multiple domestic and international locations represents a substantial investment. To benchmark this value effectively, comparisons would need to be made with contracts for similar scope, complexity, and duration. Factors such as the number of systems, the specific technologies involved (e.g., live fire, virtual simulation), and the geographic spread of installations are crucial. Without specific comparable contract data, it's challenging to definitively state if this is high or low. However, given the continuous nature of the refreshes and the global reach, the cost appears to be within a reasonable range for large-scale defense modernization programs of this type.
What are the primary risks associated with this contract?
The primary risks associated with this contract include technical integration challenges, as digital range training systems often involve complex hardware and software that must interface with existing infrastructure across multiple sites. Performance risks are also present, particularly ensuring the reliability and effectiveness of the refreshed systems in diverse operational environments. Schedule risks could arise from delays in procurement, installation, or testing. Furthermore, the continuous technical refresh aspect introduces a risk of technology obsolescence if not managed proactively. The firm-fixed-price nature shifts some financial risk to the contractor, but performance failures could still impact military readiness.
How effective are these digital range training systems in improving military readiness?
Digital range training systems are designed to significantly enhance military readiness by providing realistic, repeatable, and measurable training scenarios that may be difficult or costly to replicate in live-fire exercises. They allow for the simulation of complex tactical situations, enemy forces, and environmental conditions, enabling service members to develop critical skills in a safe and controlled environment. Continuous technical refreshes ensure that these systems remain relevant and incorporate advancements in technology, thereby maintaining their effectiveness. Improved training fidelity and data collection capabilities offered by these systems contribute to better performance assessment and targeted skill development, ultimately bolstering overall combat readiness.
What has been the historical spending trend for digital range training systems by the Department of Defense?
Historical spending on digital range training systems by the Department of Defense has generally been substantial and consistent, reflecting the ongoing need for advanced training capabilities. The DoD invests heavily in simulation and training technologies to prepare personnel for diverse operational environments and evolving threats. While specific figures for 'digital range training systems' as a distinct category can fluctuate based on modernization cycles and strategic priorities, the overall trend indicates a sustained commitment. Factors such as technological advancements, new system fielding, and the need for continuous upgrades contribute to ongoing budgetary allocations. This $68.5 million contract aligns with this historical pattern of significant investment in training infrastructure.
What is the significance of the 'CONTINUOUS TECHNICAL REFRESHES' aspect of this contract?
The 'CONTINUOUS TECHNICAL REFRESHES' aspect of this contract is highly significant as it addresses the challenge of rapidly evolving technology in military training systems. Instead of periodic, large-scale replacements, this approach ensures that the digital range training systems are consistently updated with the latest hardware and software. This proactive strategy helps maintain the fidelity and effectiveness of the training environment, preventing obsolescence and ensuring that service members train on systems that reflect current and future operational needs. It also allows for incremental improvements and adaptation to new threats or doctrines, contributing to sustained military readiness and potentially offering better long-term value by avoiding large, infrequent capital outlays.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W900KK10R0022
Pricing Type: FIRM FIXED PRICE (J)
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: $84,565,077
Exercised Options: $68,541,249
Current Obligation: $68,541,249
Subaward Activity
Number of Subawards: 134
Total Subaward Amount: $174,596,833
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK11D0003
IDV Type: IDC
Timeline
Start Date: 2019-03-28
Current End Date: 2022-07-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2022-06-29
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