DoD Awards Lockheed Martin $18.4M for Cyber Range Facility Event Support

Contract Overview

Contract Amount: $18,415,424 ($18.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-06-05

End Date: 2026-06-04

Contract Duration: 1,095 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER PROVIDING SERVICES FOR EVENT PLANNING, OPERATIONS AND SUPPORT OF THE NATIONAL CYBER RANGE COMPLEX FACILITY IN CHARLESTON, SC.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to LOCKHEED MARTIN CORPORATION for work described as: TASK ORDER PROVIDING SERVICES FOR EVENT PLANNING, OPERATIONS AND SUPPORT OF THE NATIONAL CYBER RANGE COMPLEX FACILITY IN CHARLESTON, SC. Key points: 1. Significant contract value for specialized cyber range support services. 2. Lockheed Martin is a major defense contractor, indicating established capabilities. 3. Potential risk associated with long-term facility operations and event complexity. 4. Spending falls under IT services, a critical but often high-cost sector.

Value Assessment

Rating: good

The $18.4M award over three years for event planning and support at the National Cyber Range Complex appears reasonable given the specialized nature of the services and the prime contractor's experience. Benchmarking against similar complex facility management contracts would provide further validation.

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 price discovery. The use of a Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires robust oversight to manage costs effectively.

Taxpayer Impact: Taxpayer funds are being used for essential cyber defense infrastructure support, with competition aiming to ensure value for money.

Public Impact

Enhances national cybersecurity training and testing capabilities. Supports critical infrastructure resilience through advanced cyber exercises. Contributes to the readiness of military personnel in cyber warfare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost overruns due to CPFF structure.
  • Scope creep in event planning and support.
  • Dependence on a single large contractor.

Positive Signals

  • Supports a vital national security asset.
  • Awarded through competitive bidding.
  • Long-term contract provides stability.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on specialized services for a cyber range facility. Spending benchmarks for similar complex facility operations and event management contracts are typically high due to the technical expertise and infrastructure required.

Small Business Impact

The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of specific subcontracting goals for small businesses in the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

The Cost Plus Fixed Fee (CPFF) contract type necessitates strong oversight from the Department of the Army to monitor costs, ensure performance, and prevent potential overruns. Regular audits and performance reviews will be crucial for accountability.

Related Government Programs

  • Other Computer Related Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for cost overruns with CPFF.
  • Long-term reliance on a single large contractor.
  • Complexity of managing specialized cyber range events.
  • Risk of technological obsolescence in cyber capabilities.

Tags

other-computer-related-services, department-of-defense, sc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to LOCKHEED MARTIN CORPORATION. TASK ORDER PROVIDING SERVICES FOR EVENT PLANNING, OPERATIONS AND SUPPORT OF THE NATIONAL CYBER RANGE COMPLEX FACILITY IN CHARLESTON, SC.

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 $18.4 million.

What is the period of performance?

Start: 2023-06-05. End: 2026-06-04.

What is the projected cost efficiency of this contract given the CPFF structure and the specialized nature of cyber range support?

The Cost Plus Fixed Fee (CPFF) structure allows for flexibility in complex projects but can lead to higher costs if not managed tightly. The specialized nature of cyber range support, involving event planning, operations, and facility maintenance, inherently carries significant costs due to required expertise and infrastructure. While competition aims for efficiency, ongoing oversight is critical to ensure the fixed fee remains appropriate and costs are controlled, making cost efficiency a key area for monitoring throughout the contract's life.

What are the primary risks associated with the long-term operation and event support for a national cyber range facility?

Key risks include the potential for scope creep in event planning and support, leading to cost overruns despite the fixed fee. Technological obsolescence of the cyber range itself could necessitate costly upgrades. Furthermore, ensuring consistent high-level performance and security for critical training events requires specialized personnel, and turnover or skill gaps could pose a risk. Dependence on a single large contractor also presents a risk if performance issues arise or if their strategic priorities shift.

How effectively does this contract contribute to the overall mission readiness and advancement of national cybersecurity capabilities?

This contract is crucial for maintaining and operating a key national asset – the Cyber Range Complex. By ensuring the facility is ready for events and operations, it directly supports the training and testing of personnel in advanced cyber warfare scenarios. This enhances mission readiness across various defense branches. The facility's capabilities, supported by this contract, are vital for developing and validating new cyber defense strategies and technologies, thus contributing significantly to the nation's overall cybersecurity posture.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W900KK20R0011

Offers Received: 3

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: $103,986,479

Exercised Options: $51,253,966

Current Obligation: $18,415,424

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $2,793,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK21D0006

IDV Type: IDC

Timeline

Start Date: 2023-06-05

Current End Date: 2026-06-04

Potential End Date: 2028-06-04 00:00:00

Last Modified: 2025-12-18

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