DoD's $80.7M National Cyber Range Contract Awarded to Lockheed Martin Raises Competition Concerns
Contract Overview
Contract Amount: $80,676,616 ($80.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-11-20
End Date: 2022-11-19
Contract Duration: 1,095 days
Daily Burn Rate: $73.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NATIONAL CYBER RANGE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $80.7 million to LOCKHEED MARTIN CORPORATION for work described as: NATIONAL CYBER RANGE Key points: 1. Significant investment in cyber capabilities for the Department of the Army. 2. Sole-source award to Lockheed Martin limits competitive pricing and innovation. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. The 'Other Computer Related Services' NAICS code suggests a broad scope, potentially masking specific service needs.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while allowing flexibility, can lead to higher costs if not managed tightly. Benchmarking against similar cyber range development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This lack of competition likely prevented the government from obtaining the best possible price and exploring a wider range of solutions.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially funding less efficient cost structures.
Public Impact
Enhances national cybersecurity training and testing infrastructure. Supports advanced cyber warfare simulation and defense readiness. Potential for technology transfer and skill development within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can inflate costs.
- Lack of detailed cost data hinders value assessment.
- Broad NAICS code may obscure specific service costs.
Positive Signals
- Addresses critical national security need for cyber training.
- Leverages established contractor capabilities.
- Provides a dedicated cyber range for advanced simulations.
Sector Analysis
Spending in the IT services sector, particularly for specialized areas like cyber ranges, is substantial. Benchmarks for similar complex simulation and training systems are often proprietary or vary widely based on scope and technology.
Small Business Impact
No indication of small business participation in this sole-source award. Opportunities for small businesses to contribute to such large-scale cyber initiatives are often limited when contracts are not competed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the scope aligns with stated requirements. Performance metrics should be rigorously tracked.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition.
- Cost Plus Fixed Fee contract.
- Potential for scope creep.
- Limited transparency on cost justification.
- Dependency on a single contractor.
Tags
other-computer-related-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.7 million to LOCKHEED MARTIN CORPORATION. NATIONAL CYBER RANGE
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 $80.7 million.
What is the period of performance?
Start: 2019-11-20. End: 2022-11-19.
What specific capabilities does the National Cyber Range provide, and how do they align with current and future cyber defense needs?
The National Cyber Range is designed to provide a realistic, large-scale environment for testing cyber capabilities, training personnel, and conducting complex cyber exercises. Its alignment with future needs depends on its adaptability to emerging threats and technologies, which requires ongoing investment and strategic planning by the Department of Defense.
Given the sole-source award, what measures were taken to ensure the fixed fee was fair and reasonable?
Without a competitive process, ensuring a fair and reasonable fixed fee relies heavily on the government's pre-award cost analysis, market research for comparable services, and negotiation strategies. The agency likely used historical data, industry cost models, and expert judgment to establish the fee, but the absence of competing proposals makes independent verification challenging.
How will the effectiveness of the National Cyber Range be measured, particularly in terms of improving cyber defense posture?
Effectiveness is typically measured through key performance indicators (KPIs) related to training outcomes, simulation fidelity, threat detection rates, and response times during exercises. Post-exercise debriefings and analysis of simulated mission success rates provide insights into improvements in cyber defense posture and personnel readiness.
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: W900KK19R0077
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $80,676,616
Exercised Options: $80,676,616
Current Obligation: $80,676,616
Actual Outlays: $6,470,324
Subaward Activity
Number of Subawards: 94
Total Subaward Amount: $8,281,828
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W900KK20D0001
IDV Type: IDC
Timeline
Start Date: 2019-11-20
Current End Date: 2022-11-19
Potential End Date: 2022-11-19 00:00:00
Last Modified: 2025-10-31
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