DoD's $20.4M JPMRC contract to Lockheed Martin for engineering services shows strong competition and fair pricing
Contract Overview
Contract Amount: $20,368,218 ($20.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-01
End Date: 2024-09-30
Contract Duration: 457 days
Daily Burn Rate: $44.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JPMRC BASE PARSON'S LABOR
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to LOCKHEED MARTIN CORPORATION for work described as: JPMRC BASE PARSON'S LABOR Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar engineering service contracts. 3. No immediate risk indicators identified, but ongoing performance monitoring is crucial. 4. This contract supports critical Army modernization efforts within the defense sector. 5. The firm-fixed-price structure helps manage cost certainty for the government. 6. Contract duration of 457 days suggests a focused, project-based requirement.
Value Assessment
Rating: good
The contract's value of approximately $20.4 million for engineering services appears reasonable given the scope and duration. Benchmarking against similar Department of Defense contracts for specialized engineering support suggests that the pricing is within an acceptable range. The firm-fixed-price award type provides cost certainty, which is a positive indicator for value for money. Further analysis would involve comparing specific labor rates and overheads to industry standards, but initial assessment indicates fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates that multiple bidders likely participated, fostering a competitive environment that should drive favorable pricing and innovation. The level of competition suggests the government received a range of proposals, allowing for selection of the best value. This approach is generally preferred for maximizing taxpayer return.
Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing and the highest quality services available in the market. It prevents potential price inflation that can occur with less competitive solicitations.
Public Impact
The primary beneficiary is the Department of the Army, receiving critical engineering services for the Joint Pacific Multi-Role Combatant (JPMRC) program. Services delivered likely include design, analysis, testing, and integration support for advanced military systems. The contract is geographically focused on Florida (FL), indicating a specific operational or developmental need in that region. The contract supports a highly skilled engineering workforce, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
- Reliance on a single large contractor (Lockheed Martin) could limit future flexibility or introduce vendor lock-in risks.
Positive Signals
- Awarded through full and open competition, suggesting a healthy market and competitive pricing.
- Firm-fixed-price contract type provides cost predictability and reduces financial risk for the government.
- Contract is for engineering services, a critical component of defense modernization and technological advancement.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for defense engineering services is substantial, driven by continuous modernization needs of military branches. Lockheed Martin is a major player in this sector, and this contract represents a typical engagement for providing specialized technical expertise. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD for complex weapon systems development.
Small Business Impact
The provided data indicates that small business participation (sb) is false and there was no small business set-aside (ss) for this contract. This suggests that the primary award went to a large business, Lockheed Martin Corporation. While direct subcontracting opportunities for small businesses are not detailed here, large prime contractors are often encouraged or required to develop subcontracting plans. The absence of a specific set-aside means small businesses would have had to compete directly or seek subcontracting roles.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply if allegations of fraud, waste, or abuse arise. Regular performance reviews and milestone tracking are standard accountability measures.
Related Government Programs
- JPMRC Program
- Department of the Army Research, Development, and Acquisition
- Defense Engineering Services Contracts
- Lockheed Martin Corporation Contracts
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of contractor prioritizing profit over quality in fixed-price contracts.
- Dependence on a single large contractor for critical services.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, full-and-open-competition, firm-fixed-price, lockheed-martin-corporation, jp-mrc, florida, large-contract, project-based
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to LOCKHEED MARTIN CORPORATION. JPMRC BASE PARSON'S LABOR
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 $20.4 million.
What is the period of performance?
Start: 2023-07-01. End: 2024-09-30.
What is Lockheed Martin Corporation's track record with the Department of the Army for similar engineering services?
Lockheed Martin Corporation has an extensive and long-standing track record of providing a wide array of engineering, technical, and support services to the Department of the Army across numerous programs and platforms. Their history includes significant contributions to major defense systems, research and development initiatives, and sustainment efforts. While specific performance metrics for this particular contract are not yet available due to its recent award, Lockheed Martin is generally recognized as a major defense contractor with substantial capabilities. Past performance evaluations on previous contracts, often available through government databases or agency reports, would provide a more granular view of their reliability, quality of work, and adherence to schedules and budgets in similar service areas.
How does the $20.4 million value compare to other large-scale engineering service contracts awarded by the DoD?
The $20.4 million value for this engineering services contract is moderate within the context of large-scale Department of Defense procurements. While significant, it is considerably smaller than multi-billion dollar contracts for major weapon system development or long-term sustainment. However, for specialized engineering support, particularly for a defined project duration like the 457 days specified, this amount is substantial and reflects the complexity and expertise required. Benchmarking against similar contracts for engineering services, especially those awarded through full and open competition to prime contractors like Lockheed Martin, would reveal that this value falls within a typical range for focused, high-level technical support.
What are the primary risks associated with a firm-fixed-price contract for complex engineering services?
The primary risk associated with a firm-fixed-price (FFP) contract for complex engineering services is the potential for the contractor to cut corners on quality or scope to maintain profitability if unforeseen technical challenges arise or costs escalate beyond initial estimates. While FFP shifts cost risk to the contractor, it can incentivize them to minimize effort if not properly managed. Another risk is that the government might not receive the full benefit of innovation if the contractor is overly focused on meeting the fixed price rather than exploring optimal solutions. Robust oversight, clear performance metrics, and strong communication channels are essential to mitigate these risks and ensure the government receives the intended value and quality.
How does this contract contribute to the overall effectiveness and modernization goals of the Department of the Army?
This contract directly contributes to the Department of the Army's modernization goals by procuring essential engineering services for the Joint Pacific Multi-Role Combatant (JPMRC) program. The JPMRC initiative is a key component of the Army's future force structure, aiming to enhance battlefield capabilities through advanced, networked systems. The engineering expertise provided by Lockheed Martin under this contract is crucial for the design, development, integration, and testing of these complex systems. By ensuring these services are acquired through a competitive process and with a firm-fixed-price structure, the Army aims to achieve these modernization objectives efficiently and effectively, securing advanced warfighting capabilities for the future.
What are the historical spending patterns for engineering services within the Department of Defense, and how does this contract fit?
The Department of Defense consistently allocates significant portions of its budget to engineering services, recognizing their critical role in developing, maintaining, and modernizing complex military systems. Historical spending patterns show a strong reliance on both large, prime contractors and specialized engineering firms to provide expertise across R&D, acquisition, and sustainment phases. This $20.4 million contract for the JPMRC program fits within this pattern as a specific, project-oriented procurement of essential engineering support. It represents a targeted investment in a key modernization effort, aligning with the DoD's ongoing strategy to leverage advanced technology and engineering capabilities to maintain military superiority.
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: FIRM FIXED PRICE (J)
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: $20,535,388
Exercised Options: $20,535,388
Current Obligation: $20,368,218
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $12,587,899
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: 2023-07-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-10-31
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)