Lockheed Martin awarded $36.6M for Army training systems maintenance, highlighting engineering services for simulations

Contract Overview

Contract Amount: $36,657,519 ($36.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-07-01

End Date: 2020-06-30

Contract Duration: 365 days

Daily Burn Rate: $100.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0208.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32801

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to LOCKHEED MARTIN CORPORATION for work described as: ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0208. Key points: 1. Contract value represents a significant investment in maintaining critical training infrastructure. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type aims to control costs and provide predictable spending. 4. This contract supports the Army's need for reliable and advanced training simulations. 5. The duration of one year indicates a focused effort on specific maintenance tasks. 6. Geographic focus on Florida suggests a concentration of training facilities in the region.

Value Assessment

Rating: good

The contract value of $36.6 million for a one-year period for training aids, devices, simulators, and simulations (TADSS) maintenance appears reasonable given the complexity of maintaining advanced simulation systems. Benchmarking against similar large-scale simulation maintenance contracts would provide further context, but the firm-fixed-price structure suggests an effort to manage costs effectively. The scale of the award indicates a substantial requirement for specialized engineering and maintenance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the award. The specific number of bidders is not provided, but the designation suggests a broad solicitation process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value received for public funds.

Public Impact

U.S. Army personnel benefit from access to well-maintained and operational training simulators. Enhanced training capabilities contribute to improved soldier readiness and mission effectiveness. The contract supports specialized technical jobs in engineering and simulation maintenance. The primary geographic impact is in Florida, where the training facilities are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical issues arise with complex simulation systems.
Dependence on a single contractor for critical training infrastructure maintenance.
Risk of technological obsolescence if maintenance does not keep pace with simulation advancements.

Positive Signals

Firm-fixed-price contract helps to establish cost certainty.
Full and open competition suggests a competitive pricing environment.
Award to a large, established defense contractor like Lockheed Martin implies a high level of technical expertise and reliability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's need for advanced simulation and training technologies. The market for defense simulation and training is substantial, driven by the continuous requirement for realistic and effective military training. This award represents a portion of the broader government spending on defense readiness and technological advancement, where companies like Lockheed Martin are key players.

Small Business Impact

The contract was awarded to Lockheed Martin Corporation, a large prime contractor, and there is no indication of a small business set-aside. While this specific award may not directly benefit small businesses through a set-aside, large prime contractors are often required to meet subcontracting goals with small businesses on major contracts. The impact on the small business ecosystem would depend on Lockheed Martin's subcontracting plan for this task order.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Army Training Aids, Devices, Simulators and Simulations (TADSS) Program
Defense Training and Simulation Contracts
Military Readiness and Logistics Support
Engineering Services for Government Contracts

Risk Flags

Potential for cost growth if scope expands beyond initial task order.
Dependency on contractor performance for critical training capabilities.
Risk of technological obsolescence impacting long-term training effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to LOCKHEED MARTIN CORPORATION. ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0208.

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 $36.7 million.

What is the period of performance?

Start: 2019-07-01. End: 2020-06-30.

What is Lockheed Martin's track record with similar Army training simulation maintenance contracts?

Lockheed Martin Corporation has a long-standing and extensive history of providing complex systems, including training, simulation, and maintenance services, to the U.S. military, particularly the Army. They are a major defense contractor with significant experience in developing, producing, and sustaining sophisticated platforms and technologies. While specific details on past performance for this exact TADSS maintenance program are not detailed here, their broad capabilities in areas like aviation simulation, ground vehicle simulators, and virtual training environments suggest a strong foundation for undertaking such contracts. Their track record generally includes managing large-scale, multi-year programs, adhering to stringent performance requirements, and delivering integrated solutions. However, like any large contractor, past performance reviews and specific contract outcomes can vary, and a deeper dive into individual contract histories would be necessary for a comprehensive assessment.

How does the $36.6 million value compare to previous years' spending on Army training simulation maintenance?

To accurately compare the $36.6 million award value to previous years' spending on Army training simulation maintenance, access to historical contract data for the TADSS Maintenance Program (ATMP) or similar initiatives is required. Without this specific historical data, a direct comparison is difficult. However, the value suggests a significant, potentially annual, investment in maintaining these critical training assets. Factors influencing year-over-year spending can include the scope of services required, the number of systems under maintenance, technological upgrades, and overall budget allocations for training and readiness. If this is a new task order under an existing program, its value can be assessed against the program's overall budget. If it represents a new contract, comparing it to the average value of similar-sized simulation maintenance contracts across the DoD would provide a benchmark.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract include potential technical challenges in maintaining complex and potentially aging simulation systems, which could lead to cost overruns or schedule delays, despite the firm-fixed-price structure. There's also a risk of performance degradation if the contractor's maintenance processes are not robust or if key personnel with specialized knowledge leave. Furthermore, the reliance on a single contractor for a critical function like training simulation maintenance introduces a dependency risk; any disruption in service could significantly impact Army training schedules. Finally, the risk of technological obsolescence is present, where the maintained systems may not keep pace with evolving training needs or newer technologies, potentially diminishing their effectiveness over time.

How effective is the Army's current approach to maintaining training aids, devices, simulators, and simulations?

The effectiveness of the Army's approach to maintaining its Training Aids, Devices, Simulators, and Simulations (TADSS) is generally considered crucial for ensuring soldier readiness and mission effectiveness. Programs like the Army Training Aids, Devices, Simulators and Simulations (TADSS) Maintenance Program (ATMP) are designed to provide comprehensive support, including preventative maintenance, corrective maintenance, and upgrades. The continued investment in contracts like the one awarded to Lockheed Martin suggests a recognition of the importance of these systems. Effectiveness can be measured by factors such as system uptime, fidelity of simulation, availability of training slots, and the overall cost-efficiency of the maintenance program. While specific performance metrics for this contract are not detailed, the Army's sustained reliance on such programs indicates a perceived level of effectiveness, though continuous evaluation and adaptation are necessary to meet evolving training demands.

What is the typical duration and value range for Army TADSS maintenance contracts?

The typical duration and value range for Army TADSS maintenance contracts can vary significantly based on the scope, complexity, and specific systems involved. Contracts can range from short-term, task-order-based agreements for specific equipment or locations to multi-year, comprehensive support programs covering a wide array of simulators and devices across multiple installations. Task orders, like the one awarded here for $36.6 million over one year, represent a segment of the overall TADSS maintenance effort. Larger, indefinite-delivery/indefinite-quantity (IDIQ) contracts or prime vendor agreements could span several years and be valued in the hundreds of millions or even billions of dollars, encompassing a broader range of services and systems. The $36.6 million for one year suggests a substantial but focused maintenance requirement.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK17R0034

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

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

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: $36,657,519

Exercised Options: $36,657,519

Current Obligation: $36,657,519

Subaward Activity

Number of Subawards: 92

Total Subaward Amount: $73,988,816

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK18D0018

IDV Type: IDC

Timeline