Lockheed Martin awarded $39.8M for Army training aids, devices, simulators, and simulations maintenance
Contract Overview
Contract Amount: $39,758,192 ($39.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-01
End Date: 2024-06-30
Contract Duration: 365 days
Daily Burn Rate: $108.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD TASK ORDER 0607 AND FUND CONTRACT LINE ITEM NUMBERS ON THE ARMY TRAINING AIDS, DEVICES, SIMULATORS, AND SIMULATIONS MAINTENANCE PROGRAM CONTRACT.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32828
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $39.8 million to LOCKHEED MARTIN CORPORATION for work described as: AWARD TASK ORDER 0607 AND FUND CONTRACT LINE ITEM NUMBERS ON THE ARMY TRAINING AIDS, DEVICES, SIMULATORS, AND SIMULATIONS MAINTENANCE PROGRAM CONTRACT. Key points: 1. Contract value represents a significant investment in advanced military training capabilities. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. Focus on maintenance suggests a need for sustained operational readiness of training systems. 4. The contract duration of one year indicates a need for ongoing support. 5. The firm-fixed-price contract type shifts performance risk to the contractor. 6. The geographic focus on Florida may indicate a concentration of training facilities in the region.
Value Assessment
Rating: good
The award amount of $39.8 million for a one-year period for maintenance of training systems appears reasonable given the complexity and specialized nature of military simulation and training equipment. Benchmarking against similar contracts for large-scale defense simulation maintenance is challenging without more specific details on the scope of services. However, the firm-fixed-price structure suggests that the contractor has committed to delivering the specified services within the agreed-upon budget, which is a positive indicator for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach aligns with best practices for maximizing value and ensuring fair access to government contracts.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential suppliers to compete, driving down costs and improving the quality of services through market forces.
Public Impact
The primary beneficiaries are U.S. Army personnel who will receive enhanced and reliable training experiences. Services delivered include the maintenance of critical training aids, devices, simulators, and simulations. The geographic impact is concentrated in Florida, likely supporting Army training installations in that state. Workforce implications include the potential for skilled technical jobs in simulation maintenance and support within Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price agreement.
- Dependence on a single contractor for critical training system maintenance could pose a risk if performance issues emerge.
- The one-year duration may limit long-term strategic planning for training system upgrades and sustainment.
Positive Signals
- Award to a large, established defense contractor like Lockheed Martin suggests a high likelihood of technical capability and experience.
- Firm-fixed-price contract type provides cost certainty for the government.
- Full and open competition indicates a robust bidding process that should yield competitive pricing.
- The contract supports essential military readiness through the maintenance of training systems.
Sector Analysis
The defense simulation and training market is a significant segment within the broader aerospace and defense industry. This contract falls under engineering services, specifically focusing on the maintenance and sustainment of complex training systems. The market is characterized by high technological barriers to entry and a reliance on specialized expertise. Spending in this sector is driven by the need for realistic and effective training to prepare military personnel for diverse operational environments, with significant government investment allocated annually to maintain and upgrade these critical assets.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Lockheed Martin is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Lockheed Martin's own subcontracting plan and the specific requirements of the Army's training systems maintenance program. Further analysis would be needed to determine the specific impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by placing performance risk on the contractor. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Army Training Aids, Devices, Simulators, and Simulations (TADSS) Program
- Defense Training and Simulation Contracts
- Military Readiness and Sustainment Programs
- Aerospace and Defense Maintenance Services
Risk Flags
- Performance Risk
- Cost Certainty
- Contractor Dependence
- Technological Obsolescence
Tags
defense, department-of-defense, department-of-the-army, engineering-services, full-and-open-competition, firm-fixed-price, delivery-order, maintenance, simulators, training-aids, florida, lockheed-martin-corporation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.8 million to LOCKHEED MARTIN CORPORATION. AWARD TASK ORDER 0607 AND FUND CONTRACT LINE ITEM NUMBERS ON THE ARMY TRAINING AIDS, DEVICES, SIMULATORS, AND SIMULATIONS MAINTENANCE PROGRAM CONTRACT.
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 $39.8 million.
What is the period of performance?
Start: 2023-07-01. End: 2024-06-30.
What is Lockheed Martin's track record with the Army Training Aids, Devices, Simulators, and Simulations (TADSS) program?
Lockheed Martin Corporation has a long-standing and extensive history of providing advanced technology solutions and services to the U.S. military, including the Army. Within the TADSS program, the company has been a significant contractor, involved in the development, production, and sustainment of various training systems. Their involvement often spans complex simulations, virtual reality training environments, and maintenance services for these sophisticated platforms. Given their established presence and capabilities, their track record with the TADSS program is generally characterized by deep technical expertise and a capacity to handle large-scale, critical defense contracts. This specific award for maintenance builds upon that established relationship and expertise, indicating continued reliance on their capabilities for ensuring the operational readiness of Army training assets.
How does the $39.8 million award compare to historical spending on Army training simulation maintenance?
The $39.8 million award for one year represents a substantial, but not necessarily anomalous, investment in the maintenance of Army training systems. Historical spending on the TADSS program and similar simulation maintenance contracts can fluctuate significantly based on the lifecycle of training systems, modernization efforts, and overall defense budgets. For instance, major upgrades or the introduction of new simulation technologies can lead to spikes in maintenance and sustainment costs. Conversely, during periods of system maturity or budget constraints, spending might be lower. Without specific historical data for this exact type of maintenance under the TADSS IDIQ, it's difficult to provide a precise comparison. However, annual awards in the tens of millions for sustainment of complex military training infrastructure are common within the Department of Defense.
What are the primary risks associated with this contract for the Department of the Army?
The primary risks for the Department of the Army in this contract revolve around performance and cost. With a firm-fixed-price contract, the risk of cost overruns is primarily on Lockheed Martin. However, if the contractor fails to perform adequately, the Army faces risks related to degraded training capabilities, delayed readiness, and potential costs associated with rectifying performance failures or seeking alternative solutions. Dependence on a single contractor for critical maintenance also poses a risk; if Lockheed Martin experiences significant operational issues or decides to exit the market segment, the Army could face disruptions. Furthermore, ensuring that the maintenance performed keeps pace with evolving technological requirements and operational needs is an ongoing risk that requires diligent oversight.
How effective is the maintenance of training simulators in ensuring Army operational readiness?
The effective maintenance of training simulators is absolutely critical for ensuring Army operational readiness. Modern military training relies heavily on sophisticated simulators that replicate real-world combat scenarios with high fidelity. When these systems are well-maintained, soldiers can train in realistic, safe, and cost-effective environments, developing essential skills and decision-making capabilities without the risks and expenses of live-fire exercises or deployments. Conversely, poorly maintained simulators can lead to inaccurate training, frustration among trainees, and a false sense of preparedness. Therefore, consistent and high-quality maintenance, as contracted here, directly contributes to the Army's ability to deploy forces that are proficient, adaptable, and ready for mission success.
What is the typical contract duration for simulation maintenance services within the DoD?
Contract durations for simulation maintenance services within the Department of Defense (DoD) can vary widely, often reflecting the nature of the requirement and the overall program strategy. Many maintenance contracts are awarded as one-year delivery orders against larger IDIQ vehicles, similar to this award, providing flexibility and allowing for annual review and adjustment. However, longer-term sustainment contracts, sometimes spanning multiple years with options, are also common, particularly for major weapon systems or complex simulation suites where long-term support is essential. The one-year duration of this specific award suggests a focus on immediate operational needs and potentially allows the Army to re-evaluate requirements or contractor performance annually before committing to longer periods.
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: $39,945,341
Exercised Options: $39,945,341
Current Obligation: $39,758,192
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $4,794,670
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: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2025-07-10
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