DoD Awards $23.3M for NTC Instrumentation Maintenance to Lockheed Martin
Contract Overview
Contract Amount: $23,263,605 ($23.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2022-09-30
Contract Duration: 456 days
Daily Burn Rate: $51.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: THE PURPOSE FOR THIS AWARD IS TO EXERCISE ORDERING PERIOD 4 FOR THE NATIONAL TRAINING CENTER FOR LABOR, MATERIALS AND OTHER DIRECT COSTS FOR INSTRUMENTATION MAINTENANCE AND SUPPORT
Place of Performance
Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310
Plain-Language Summary
Department of Defense obligated $23.3 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE FOR THIS AWARD IS TO EXERCISE ORDERING PERIOD 4 FOR THE NATIONAL TRAINING CENTER FOR LABOR, MATERIALS AND OTHER DIRECT COSTS FOR INSTRUMENTATION MAINTENANCE AND SUPPORT Key points: 1. Significant award for essential defense training infrastructure. 2. Lockheed Martin is a major defense contractor, indicating established capabilities. 3. Risk of cost overruns or performance issues inherent in long-term maintenance contracts. 4. Spending falls within Engineering Services sector, common for complex support.
Value Assessment
Rating: good
The award amount of $23.3M over 15 months for instrumentation maintenance appears reasonable given the complexity and critical nature of National Training Center operations. Benchmarking against similar long-term, specialized support contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The specific pricing structure (Cost No Fee) needs careful monitoring to ensure cost control.
Taxpayer Impact: Competition in this award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure on critical training support.
Public Impact
Ensures continued operational readiness of the National Training Center. Supports advanced military training simulations and exercises. Maintains critical instrumentation for realistic combat scenarios. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in maintenance requirements.
- Reliance on a single contractor for critical systems.
- Inflationary pressures impacting long-term cost projections.
Positive Signals
- Awarded through full and open competition.
- Supports a vital national defense training facility.
- Established contractor with relevant experience.
Sector Analysis
This award falls under Engineering Services, a broad category often associated with complex technical support and maintenance for specialized government assets. Spending benchmarks for similar long-term instrumentation support contracts are difficult to ascertain without more specific data.
Small Business Impact
The data indicates this award was not set aside for small businesses, and the prime contractor is a large corporation. There is no information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The Department of the Army's oversight will be crucial in managing this contract, particularly regarding cost controls and performance metrics. Regular performance reviews and audits are essential to ensure accountability and value for money.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overrun risk due to 'Cost No Fee' structure.
- Potential for contractor performance issues impacting training.
- Long-term reliance on a single vendor.
- Lack of transparency on small business subcontracting.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE FOR THIS AWARD IS TO EXERCISE ORDERING PERIOD 4 FOR THE NATIONAL TRAINING CENTER FOR LABOR, MATERIALS AND OTHER DIRECT COSTS FOR INSTRUMENTATION MAINTENANCE AND SUPPORT
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 $23.3 million.
What is the period of performance?
Start: 2021-07-01. End: 2022-09-30.
What is the historical cost performance of Lockheed Martin on similar long-term maintenance contracts for complex government systems?
Assessing Lockheed Martin's historical performance on comparable contracts is vital. Past performance data, including cost overruns, schedule adherence, and quality of service, can provide insights into potential future outcomes. A review of their track record with the DoD and other agencies for large-scale maintenance and support would be beneficial.
How will the 'Cost No Fee' pricing structure be managed to prevent cost overruns and ensure value?
The 'Cost No Fee' (CNF) structure places the cost risk on the government. Robust oversight mechanisms, including detailed cost tracking, regular audits, and clear performance metrics, are essential. The contracting officer must actively manage the contract to ensure costs remain within budgeted limits and that the contractor is incentivized for efficiency.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effectiveness?
Key performance indicators should focus on instrumentation uptime, response times for maintenance, accuracy of repairs, and overall support effectiveness for training exercises. Clear, measurable KPIs, coupled with a rigorous inspection and acceptance process, will be critical for evaluating the contractor's performance and ensuring the NTC's operational readiness is maintained.
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: $23,717,491
Exercised Options: $23,717,491
Current Obligation: $23,263,605
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $16,375,428
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
Start Date: 2021-07-01
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2025-02-20
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