DoD Awards $39.9M Engineering Services Contract to Lockheed Martin for Army Operations
Contract Overview
Contract Amount: $39,917,826 ($39.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2022-06-30
Contract Duration: 364 days
Daily Burn Rate: $109.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: LABOR DRTS - OP4 TO 0408 AWARD
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32801
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $39.9 million to LOCKHEED MARTIN CORPORATION for work described as: LABOR DRTS - OP4 TO 0408 AWARD Key points: 1. Significant contract value of $39.9 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract is for engineering services, a critical component for military operations. 4. The contract duration is one year, indicating a focused scope of work.
Value Assessment
Rating: fair
The contract type is Cost No Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can drive competitive pricing. However, the specific pricing outcomes are not detailed here.
Taxpayer Impact: Taxpayer funds are being used for essential engineering services supporting the Department of the Army, with the expectation of value derived from the competitive award process.
Public Impact
Supports critical Department of the Army operations through specialized engineering services. Award to a large, established defense contractor like Lockheed Martin. Contract duration of one year suggests a specific project or operational need. Geographic location of performance is Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type requires close monitoring to prevent cost overruns.
- Lack of detailed cost breakdown makes independent value assessment challenging.
Positive Signals
- Awarded under full and open competition, promoting market participation.
- Contract supports essential defense operations.
Sector Analysis
Engineering services are crucial for the defense sector, encompassing design, analysis, and technical support for military systems and infrastructure. Spending in this area is benchmarked against the overall defense budget and specific program requirements.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were directly involved as prime contractors or subcontractors in this specific award.
Oversight & Accountability
The Department of Defense has established oversight mechanisms for contract awards. However, the effectiveness of oversight for this specific 'Cost No Fee' contract depends on the rigor of performance monitoring and financial reviews.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost No Fee contract type
- Potential for cost overruns
- Limited transparency on specific services provided
- Award to a single large contractor
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.9 million to LOCKHEED MARTIN CORPORATION. LABOR DRTS - OP4 TO 0408 AWARD
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 $39.9 million.
What is the period of performance?
Start: 2021-07-01. End: 2022-06-30.
What specific engineering services are being provided under this contract, and how do they align with current Army operational needs?
The contract specifies 'Engineering Services' under NAICS code 541330. While the exact nature of these services isn't detailed, they likely support the Army's operational readiness, maintenance, or development of systems and infrastructure. Further details would be needed to understand the precise alignment with current needs.
Given the Cost No Fee structure, what are the primary risks to the government regarding cost control and potential overruns?
The primary risk with a Cost No Fee contract is that the contractor is reimbursed for all allowable costs, regardless of whether the project is completed successfully or within a target budget. This shifts the financial risk to the government, necessitating robust oversight to ensure costs are reasonable, allocable, and necessary.
How does the $39.9 million award compare to typical spending on similar engineering services contracts within the Department of the Army?
Without specific details on the scope and duration of comparable contracts, a direct comparison is difficult. However, $39.9 million represents a substantial investment for a one-year engineering services contract, suggesting a significant or complex requirement within the Department of the Army.
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
Parent Company: Lockheed Martin Corp
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: $39,917,826
Exercised Options: $39,917,826
Current Obligation: $39,917,826
Subaward Activity
Number of Subawards: 55
Total Subaward Amount: $5,199,372
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: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2024-01-17
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