Lockheed Martin awarded $19.5M for Army Training Aids Maintenance, highlighting engineering services for simulations

Contract Overview

Contract Amount: $19,493,447 ($19.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2020-07-01

End Date: 2021-06-30

Contract Duration: 364 days

Daily Burn Rate: $53.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0310.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32801

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to LOCKHEED MARTIN CORPORATION for work described as: ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0310. Key points: 1. Contract focuses on essential maintenance for advanced training systems, ensuring operational readiness. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of one year indicates a need for ongoing, but not long-term, support. 4. Performance is in Florida, potentially impacting local technical support jobs. 5. The cost-plus-fixed-fee contract type allows for flexibility in scope while managing contractor profit. 6. This award represents a portion of broader defense spending on simulation and training technologies.

Value Assessment

Rating: good

The contract value of $19.5 million for a one-year period for maintenance of training aids, devices, simulators, and simulations (TADSS) appears reasonable given the complexity of such systems. Benchmarking against similar large-scale simulation maintenance contracts is difficult without more specific details on the scope of services. However, the cost-plus-fixed-fee structure suggests that the government is paying for the actual costs incurred plus a pre-determined profit, which can be efficient if costs are well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple companies were likely invited to bid. This process generally promotes competitive pricing and allows the government to select the best value offer. The specific number of bidders is not provided, but the designation suggests a robust competition.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it is designed to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

U.S. Army personnel benefit from reliable and functional training simulators, enhancing combat readiness. Services delivered include maintenance and repair of complex training systems. The geographic impact is primarily in Florida, where the contractor is located and services are likely performed. Workforce implications include employment for skilled technicians and engineers specializing in simulation technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not rigorously monitored.
Dependence on a single large contractor for critical training system maintenance.
Scope creep could increase the final cost beyond initial estimates.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Focus on essential maintenance ensures operational readiness of critical training assets.
Experienced contractor with a significant presence in defense systems.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on simulation and training technologies. The market for defense simulation and training is substantial, driven by the need for realistic and cost-effective training solutions. Companies like Lockheed Martin are key players in this sector, providing advanced systems and associated support services. Spending in this area is critical for maintaining military readiness and technological superiority.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large prime contractor, and the direct impact on the small business ecosystem may be limited unless significant subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting of costs and performance. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.

Related Government Programs

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

Risk Flags

Cost-Plus contract type requires diligent oversight to manage expenditures.
Potential for scope creep in evolving simulation technology maintenance.
Dependence on contractor expertise for critical training systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to LOCKHEED MARTIN CORPORATION. ARMY TRAINING AIDS, DEVICES, SIMULATORS AND SIMULATIONS (TADSS) MAINTENANCE PROGRAM (ATMP) AWARD OF TASK ORDER 0310.

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 $19.5 million.

What is the period of performance?

Start: 2020-07-01. End: 2021-06-30.

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

Lockheed Martin Corporation has a long-standing and extensive track record with the Department of Defense, including numerous contracts related to training, simulation, and aviation systems. They are a primary contractor for many complex military platforms and associated support services. While specific details on past performance for the Army Training Aids, Devices, Simulators and Simulations (TADSS) Maintenance Program (ATMP) are not detailed here, their overall experience in providing sophisticated engineering and maintenance services for defense applications is well-established. This includes a history of managing large-scale, high-value contracts that require technical expertise and reliable delivery, often involving advanced simulation technologies.

How does the $19.5 million value compare to other TADSS maintenance contracts?

Direct comparison of the $19.5 million value for this specific task order to other TADSS maintenance contracts is challenging without access to a comprehensive database of all such awards, including their scope, duration, and specific systems supported. However, given that TADSS encompass a wide range of sophisticated simulators and training devices, a contract value in the tens of millions for a year of maintenance and support is not unusual for large-scale programs. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests that the final cost could fluctuate based on actual expenses, but the initial award value provides a benchmark. Larger, multi-year sustainment programs for TADSS can run into hundreds of millions or even billions of dollars.

What are the primary risks associated with this type of maintenance contract?

The primary risks associated with this type of maintenance contract, particularly a Cost Plus Fixed Fee (CPFF) award, include potential cost overruns if the contractor's actual expenses exceed projections, necessitating careful government oversight and auditing. There's also a risk of scope creep, where additional requirements are added without corresponding adjustments to the contract's cost and schedule, potentially leading to budget challenges. Furthermore, reliance on a single contractor for critical training system maintenance can pose a risk if performance issues arise or if the contractor faces financial instability. Ensuring the availability of specialized technical expertise and spare parts also presents logistical risks.

How effective is the CPFF contract type for ensuring program effectiveness in simulation maintenance?

The Cost Plus Fixed Fee (CPFF) contract type can be effective for program success when dealing with complex, evolving requirements common in simulation maintenance, where the exact scope of work might not be fully defined at the outset. It allows for flexibility in addressing unforeseen technical issues or system upgrades. The fixed fee provides the contractor with an incentive to control costs to maximize profit, while the government pays for actual, allowable costs. Effectiveness hinges on robust government oversight to ensure costs are reasonable and allocable, and that the maintenance performed directly contributes to the operational readiness and effectiveness of the training systems.

What are historical spending patterns for Army TADSS maintenance?

Historical spending patterns for Army TADSS maintenance have generally shown a consistent need for significant investment to ensure the operational readiness of training simulators and devices. This spending is driven by the continuous evolution of military technology and tactics, requiring training systems to be updated and maintained. Over the years, the Army has awarded numerous contracts, often in the hundreds of millions or billions of dollars cumulatively, for the sustainment, modernization, and support of its vast array of TADSS. Spending levels can fluctuate based on modernization programs, operational tempo, and budget allocations, but maintenance remains a core, ongoing requirement.

What is the significance of the 'Engineering Services' NAICS code (541330) for this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' signifies that the primary nature of the work under this contract involves the application of engineering principles and expertise. For the Army Training Aids, Devices, Simulators and Simulations (TADSS) Maintenance Program, this likely includes tasks such as diagnosing complex technical issues, developing repair strategies, performing intricate maintenance and upgrades on sophisticated simulation hardware and software, and potentially providing technical support and consultation. It indicates a focus on specialized technical knowledge and problem-solving rather than simple repair or janitorial services, aligning with the advanced nature of military training technology.

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 NO FEE (S)

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: $20,220,618

Exercised Options: $20,220,618

Current Obligation: $19,493,447

Subaward Activity

Number of Subawards: 63

Total Subaward Amount: $61,938,419

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