Lockheed Martin awarded $12.2M for Army training systems maintenance, with a 5-year performance period

Contract Overview

Contract Amount: $12,243,821 ($12.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2020-07-15

End Date: 2025-09-30

Contract Duration: 1,903 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0332.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32801

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to LOCKHEED MARTIN CORPORATION for work described as: ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0332. Key points: 1. Contract value represents a significant investment in maintaining critical training infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this type of service. 3. Performance period indicates a long-term commitment to sustainment operations. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. Geographic focus on Florida highlights a key training hub for the Army. 6. The absence of small business set-aside suggests a focus on large prime contractors for this specialized service.

Value Assessment

Rating: good

The contract value of $12.2 million over approximately five years suggests a moderate annual spend for training systems maintenance. Benchmarking against similar large-scale sustainment contracts for complex military equipment is necessary for a precise value-for-money assessment. However, the Cost Plus Fixed Fee structure implies that while the contractor's profit is fixed, the total cost can fluctuate, necessitating robust oversight to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these specialized services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider range of bids and encourages contractors to offer their best pricing to win the award.

Public Impact

The U.S. Army benefits directly through the sustained readiness and operational effectiveness of its training aids, devices, simulators, and simulations. This contract ensures the continued availability and functionality of critical training equipment, supporting soldier preparedness. The primary geographic impact is in Florida, where the maintenance services will be performed, potentially supporting local technical jobs. Workforce implications may include specialized technical roles for maintaining and repairing advanced simulation and training systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher overall costs if not managed diligently, as the government bears the risk of cost increases.
The specific nature of TADSS maintenance requires highly specialized technical skills, and a lack of readily available skilled personnel could pose a risk.
Reliance on a single large contractor like Lockheed Martin for critical sustainment could create vendor lock-in and limit future competitive options.

Positive Signals

Awarding under full and open competition suggests a robust market exists for these services, potentially leading to competitive pricing.
A long performance period (nearly 5 years) indicates a stable and predictable sustainment capability for the Army's training systems.
The contract's focus on maintenance ensures the longevity and effectiveness of existing training investments, maximizing their utility.

Sector Analysis

The defense sector, particularly within the U.S. Army, relies heavily on sophisticated training aids, devices, simulators, and simulations (TADSS) to prepare personnel for complex operational environments. This contract falls within the engineering services and simulation/training support sub-sector. Spending in this area is crucial for maintaining readiness and adapting to evolving military technologies and tactics. Comparable spending benchmarks would involve analyzing other large sustainment contracts for military simulation and training equipment across different branches of the armed forces.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses in the provided data. This suggests that the primary contractor, Lockheed Martin, will likely handle the majority of the work. While this may not directly benefit small businesses through prime contract awards, there could be opportunities for them to serve as subcontractors if Lockheed Martin chooses to engage them for specialized support or components.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Army contracting officers and program managers. They will be responsible for monitoring costs, ensuring performance standards are met, and approving expenditures. Transparency is typically maintained through contract reporting requirements and potential audits by the Defense Contract Audit Agency (DCAA) or the Inspector General. The fixed fee component provides a degree of accountability for the contractor's profit margin.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long-term sustainment contracts can be susceptible to changes in technology or military requirements over their duration.
Reliance on a single large contractor for critical systems maintenance may limit future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to LOCKHEED MARTIN CORPORATION. ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0332.

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 $12.2 million.

What is the period of performance?

Start: 2020-07-15. End: 2025-09-30.

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

Lockheed Martin Corporation has a long and extensive history of providing complex systems, including training and simulation solutions, to the U.S. military, particularly the Army. They are a major defense contractor with significant experience in sustainment, maintenance, and modernization of various platforms. While specific details on past TADSS maintenance contracts awarded to Lockheed Martin are not provided in this data snippet, their overall portfolio suggests a strong capability in managing large-scale, long-term support programs. Their performance on other major Army programs, such as aviation systems or ground vehicle support, can serve as a proxy for their potential performance on this contract, though direct comparisons require examining specific contract metrics like on-time delivery, cost performance, and quality ratings from past awards.

How does the $12.2 million contract value compare to historical spending on Army training systems maintenance?

The $12.2 million award for Task Order 0332 represents a specific investment within the broader Army Training Aids, Devices, Simulators and Simulations (TADSS) Maintenance Program (ATMP). To contextualize this value historically, one would need to examine the total annual or multi-year spending allocated to ATMP or similar sustainment efforts over previous fiscal years. The Army's overall budget for training and simulation can fluctuate based on strategic priorities, technological advancements, and operational tempo. This $12.2 million figure, spread over approximately five years, suggests an average annual spend of roughly $2.44 million for this particular task order. Comparing this to the total ATMP budget or other major TADSS sustainment contracts would reveal whether this represents a significant portion of the overall program or a more targeted investment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for training systems maintenance?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, such as this one for TADSS maintenance, is that the government bears the majority of the cost risk. While the contractor's profit (the 'fixed fee') is predetermined, the total allowable costs can exceed initial estimates. If the contractor incurs higher-than-expected costs due to inefficiencies, unforeseen technical challenges, or scope creep (if not managed tightly), the government pays these increased costs. This necessitates robust government oversight to monitor expenditures, ensure efficient performance, and validate the necessity of all costs incurred. Without diligent management, CPFF contracts can become more expensive than fixed-price alternatives, although they offer flexibility for complex or uncertain work scopes.

How does the performance period of nearly five years impact the effectiveness of the training systems?

A performance period of nearly five years (1903 days from July 15, 2020, to September 30, 2025) for the maintenance of Army Training Aids, Devices, Simulators and Simulations (TADSS) is generally beneficial for ensuring sustained operational readiness. This extended duration allows for consistent upkeep, timely repairs, and potentially proactive maintenance, which minimizes downtime for critical training equipment. Soldiers can rely on the availability and accuracy of simulators and training devices, leading to more effective and realistic training scenarios. Furthermore, a longer contract term can foster a stronger working relationship between the Army and the contractor, potentially leading to improved service delivery and a deeper understanding of the specific needs of the TADSS inventory.

What are the implications of this contract being awarded in Florida?

The award of this task order, with services to be performed in Florida (ST: FL), suggests that the specific training systems or facilities requiring maintenance under this contract are located or primarily supported within that state. Florida is a significant hub for military installations and training operations for various branches of the U.S. armed forces. This geographic focus implies that the contractor, Lockheed Martin, will likely establish or utilize resources in Florida to fulfill the contract requirements. This could translate into local economic benefits, such as job creation for technical personnel and support staff within Florida, and increased business for local suppliers if subcontracting occurs within the state.

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: 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: $12,505,940

Exercised Options: $12,505,940

Current Obligation: $12,243,821

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $25,598,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK18D0018

IDV Type: IDC

Timeline