Lockheed Martin awarded $26M contract for national training center support, highlighting engineering services for Army operations

Contract Overview

Contract Amount: $26,025,160 ($26.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-07-01

End Date: 2024-07-31

Contract Duration: 396 days

Daily Burn Rate: $65.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SUPPORT NATIONAL TRAINING CENTERS MISSION AND OPERATIONS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to LOCKHEED MARTIN CORPORATION for work described as: SUPPORT NATIONAL TRAINING CENTERS MISSION AND OPERATIONS Key points: 1. Contract value of $26 million for one year of support indicates significant investment in national training infrastructure. 2. The award to Lockheed Martin, a major defense contractor, suggests a focus on established capabilities for complex operational needs. 3. Engineering services are critical for maintaining and enhancing the sophisticated systems used in national training centers. 4. The firm-fixed-price contract type aims to provide cost certainty for the Department of the Army. 5. This contract falls within the broader category of defense engineering services, a substantial segment of federal spending. 6. The duration of the contract (396 days) suggests a need for sustained operational support rather than short-term projects.

Value Assessment

Rating: good

The contract value of approximately $26 million for a one-year period for engineering services supporting national training centers appears reasonable given the scope of work. Benchmarking against similar large-scale engineering support contracts for military installations or training facilities would provide further context. The firm-fixed-price structure suggests the government has negotiated a set price, which can be advantageous if the contractor's costs are well-managed. However, without specific details on the deliverables and the complexity of the engineering services, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and encourage contractors to offer their best value. The fact that it was competed openly suggests that the Army sought a broad range of potential solutions and pricing structures. The number of bidders is not specified, but the open competition itself is a positive indicator for achieving a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a more competitive bidding environment, which can lead to lower prices and better quality services. It ensures that government funds are utilized efficiently by selecting the most cost-effective and capable provider.

Public Impact

The primary beneficiaries are the U.S. Army and its personnel who rely on well-maintained and advanced training facilities. Services delivered include essential engineering support crucial for the operational readiness and effectiveness of national training centers. The geographic impact is concentrated in Florida, where the training centers are located, supporting regional infrastructure and potentially local economies through contractor activities. Workforce implications include the employment of engineers, technicians, and support staff by Lockheed Martin and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of engineering services expands beyond initial estimates, despite the fixed-price nature.
Dependence on a single large contractor for critical training infrastructure support could pose risks if performance issues arise.
The complexity of integrating new technologies or maintaining legacy systems within training centers presents ongoing technical challenges.

Positive Signals

Award to a prime contractor with extensive experience in defense engineering and support services suggests a high likelihood of successful execution.
The firm-fixed-price contract structure provides cost predictability for the government.
Full and open competition indicates a robust selection process, likely resulting in a capable and competitively priced solution.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant market for federal spending, particularly within the Department of Defense. This sector encompasses a wide range of professional services related to the design, development, and implementation of systems and infrastructure. The market size for defense engineering services is substantial, driven by the need for advanced technological capabilities and ongoing modernization of military assets and facilities. This specific contract supports national training centers, which are vital for military readiness and require specialized engineering expertise.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, Lockheed Martin, as a large prime contractor, may engage small businesses as subcontractors to fulfill certain aspects of the engineering services, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, likely through contracting officers and program managers responsible for national training centers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Military Base Operations Support
Defense Training and Simulation Systems
Engineering and Technical Services
Department of Defense Facilities Management
Army Readiness Programs

Risk Flags

Potential for scope creep impacting fixed-price contract
Reliance on single large contractor for critical infrastructure
Technical complexity of modern training systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to LOCKHEED MARTIN CORPORATION. SUPPORT NATIONAL TRAINING CENTERS MISSION AND OPERATIONS

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 $26.0 million.

What is the period of performance?

Start: 2023-07-01. End: 2024-07-31.

What is Lockheed Martin's track record with similar Department of the Army engineering support contracts?

Lockheed Martin Corporation has a long and extensive history of providing a wide array of engineering, technical, and operational support services to the Department of the Army and other branches of the U.S. military. Their portfolio includes complex system integration, logistics, maintenance, and modernization efforts for various platforms and facilities. Analyzing past performance on contracts with similar scope, duration, and value awarded to Lockheed Martin by the Army can provide insights into their capability to execute this specific contract. Historical data often reveals patterns in on-time delivery, budget adherence, and quality of service. While specific details for this contract are limited, Lockheed Martin's general profile suggests a strong capacity for fulfilling such requirements, though individual contract performance can vary.

How does the $26 million contract value compare to similar engineering services for national training centers?

Benchmarking the $26 million contract value requires comparing it against historical awards for similar engineering services supporting national training centers or comparable large-scale military facilities. Factors such as the specific services rendered (e.g., infrastructure maintenance, simulation system engineering, IT support), the duration of the contract (one year in this case), and the geographic location can influence pricing. Without access to a detailed breakdown of the services and a comprehensive database of comparable contracts, a precise comparison is difficult. However, $26 million for a year of comprehensive engineering support for a major training installation is within the expected range for large defense contractors performing complex, mission-critical functions. The firm-fixed-price nature suggests a negotiated price based on anticipated costs and profit margins.

What are the primary risks associated with this contract for the Department of the Army?

The primary risks associated with this contract for the Department of the Army include potential performance shortfalls, cost overruns (though mitigated by fixed-price), and contractor dependency. Performance risks involve Lockheed Martin failing to meet the required engineering standards or operational support levels, potentially impacting training readiness. While the firm-fixed-price contract aims to control costs, scope creep or unforeseen technical challenges could still lead to budget pressures or requests for contract modifications. Long-term dependency on a single large contractor for critical infrastructure support can also pose a risk, potentially limiting flexibility and future competition. Ensuring robust oversight and clear performance metrics are crucial to mitigating these risks.

How effective are engineering services in ensuring the operational effectiveness of national training centers?

Engineering services are fundamental to ensuring the operational effectiveness of national training centers. These services encompass the design, implementation, maintenance, and upgrade of complex training infrastructure, including simulation systems, communication networks, physical facilities, and logistical support systems. Effective engineering ensures that training environments are realistic, technologically current, and reliable, directly impacting the quality and efficacy of military training. For instance, maintaining sophisticated simulation systems requires specialized engineering expertise to ensure they function correctly and accurately replicate real-world scenarios. Without consistent and high-quality engineering support, training centers risk obsolescence, system failures, and an inability to prepare service members for modern combat environments.

What are the historical spending patterns for engineering services at national training centers?

Historical spending patterns for engineering services at national training centers typically reflect a consistent need for specialized support due to the complex and evolving nature of military training requirements. Budgets allocated to these services often fluctuate based on modernization initiatives, infrastructure upgrades, and the introduction of new training technologies. Large defense contractors like Lockheed Martin are frequent recipients of such contracts, indicating a sustained demand for their expertise. Spending in this category is generally substantial, reflecting the high cost of maintaining state-of-the-art training facilities and systems. Analyzing multi-year spending trends can reveal patterns of investment in specific areas, such as simulation technology or facility upgrades, and highlight the ongoing reliance on external engineering support.

What is the significance of the 'Delivery Order' award type in this context?

The 'Delivery Order' (aw: DELIVERY ORDER) award type signifies that this contract is likely a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework agreement. This approach allows the government to procure services incrementally as needed, rather than awarding a single, large contract upfront. For the Department of the Army, this offers flexibility in managing budgets and responding to evolving training requirements. It implies that the terms, conditions, and pricing for these services have already been established through a prior competitive process for the base IDIQ contract. The specific value of $26 million represents the funding allocated for this particular delivery order, covering a defined period and scope of work.

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: $26,284,986

Exercised Options: $26,284,986

Current Obligation: $26,025,160

Subaward Activity

Number of Subawards: 59

Total Subaward Amount: $13,622,261

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