Lockheed Martin awarded $26.5M Army training simulation task order, extending contract through September 2024
Contract Overview
Contract Amount: $26,527,553 ($26.5M)
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: $58.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS MODIFICATION IS TO AWARD AND FUND TASK ORDER 0617 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 $26.5 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS MODIFICATION IS TO AWARD AND FUND TASK ORDER 0617 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 part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract for training systems. 3. Performance is concentrated in Florida, indicating a specific regional focus for training support. 4. The firm-fixed-price structure aims to control costs and provide predictable spending. 5. This task order contributes to the Army's ongoing modernization of simulation and training technologies.
Value Assessment
Rating: good
The $26.5 million task order for training simulation maintenance appears reasonable within the context of large-scale defense contracts. Benchmarking against similar task orders under the parent IDIQ contract would provide a more precise value-for-money assessment. However, the firm-fixed-price nature suggests a degree of cost certainty for the government. The duration of the task order (approximately 15 months) also aligns with typical support cycles for complex simulation systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under a full and open competition, indicating that multiple bidders had the opportunity to compete. The specific number of bidders for this particular task order is not detailed, but the initial award of the parent IDIQ contract likely involved significant competition. A competitive process generally leads to better pricing and a wider range of technical solutions for the government.
Taxpayer Impact: A full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.
Public Impact
The U.S. Army benefits from enhanced training capabilities, improving soldier readiness and operational effectiveness. Services delivered include maintenance and support for training aids, devices, simulators, and simulations. The geographic impact is primarily in Florida, where the contractor's operations are located. Workforce implications include skilled technicians and engineers required for simulation maintenance and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise beyond the scope of standard maintenance.
- Dependence on a single large contractor for critical training simulation support.
- Risk of technological obsolescence if simulations are not updated to reflect evolving warfare tactics.
Positive Signals
- Awarded under a competitive process, suggesting fair pricing and value.
- Firm-fixed-price contract type helps manage budget predictability.
- Long-standing relationship with Lockheed Martin on this program may indicate established expertise and efficiency.
Sector Analysis
The defense simulation and training market is a substantial segment within the broader aerospace and defense industry. This contract falls under engineering services, specifically supporting complex simulation systems. Spending in this sector is driven by the need for realistic, cost-effective training solutions that reduce reliance on live exercises. Comparable spending benchmarks would involve analyzing other large simulation maintenance contracts awarded by the Department of Defense.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this task order. Lockheed Martin is a large prime contractor, and while they may utilize small businesses in their supply chain, there is no direct evidence of subcontracting goals or impacts on the small business ecosystem from this specific award. Further analysis of the parent IDIQ contract would be needed to assess overall small business utilization.
Oversight & Accountability
Oversight for this task order is likely managed by the contracting officer and program management office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within budget. Transparency is generally maintained through contract award databases, although detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Training Aids, Devices, Simulators, and Simulations (ATDS&S) Program
- Department of Defense Simulation and Training Contracts
- Aerospace and Defense Engineering Services
- Military Simulation Maintenance Contracts
Risk Flags
- Potential for cost growth if scope expands beyond initial estimates.
- Risk of contractor performance issues impacting training availability.
- Dependency on specific technology that may become obsolete.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, simulation-and-training, firm-fixed-price, full-and-open-competition, task-order, lockheed-martin, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS MODIFICATION IS TO AWARD AND FUND TASK ORDER 0617 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 $26.5 million.
What is the period of performance?
Start: 2023-07-01. End: 2024-09-30.
What is Lockheed Martin's track record with the Army Training Aids, Devices, Simulators, and Simulations (ATDS&S) program?
Lockheed Martin Corporation has a significant and established history of supporting the Army's ATDS&S program. As a prime contractor on this large, indefinite-delivery/indefinite-quantity (IDIQ) contract, the company has been responsible for providing a wide range of training solutions, including maintenance, upgrades, and support for various simulation systems. Their long-term involvement suggests a deep understanding of the Army's training requirements and a proven ability to deliver complex technical services. Historical performance data, often found in contract performance reports (CPARs), would offer more granular insights into their past successes and any challenges encountered on previous task orders under this program.
How does the $26.5 million value of this task order compare to other similar Army simulation maintenance contracts?
The $26.5 million value for this specific task order is substantial and aligns with the typical scale of major support contracts for advanced military simulation systems. To provide a precise comparison, one would need to analyze the average value and duration of other task orders issued under the parent ATDS&S IDIQ contract, as well as benchmark against similar simulation maintenance contracts awarded to other large defense contractors by different branches of the military. Factors such as the complexity of the systems being maintained, the scope of services (e.g., hardware, software, logistics), and the contract duration significantly influence cost. Given the firm-fixed-price nature, this amount represents the total anticipated cost for the defined period and scope.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks for this contract include potential technical challenges requiring unforeseen maintenance, the risk of technological obsolescence of the simulation systems over time, and contractor performance issues. Mitigation strategies are likely embedded within the contract structure. The firm-fixed-price (FFP) nature shifts some financial risk to Lockheed Martin, incentivizing them to manage costs efficiently. The competitive award process aims to select a contractor with a proven ability to perform. Furthermore, the Army's program management office will provide ongoing oversight, monitoring performance against contract requirements and addressing any emerging issues promptly. Contract clauses may also address obsolescence through requirements for updates or technology refresh plans.
How effective is the Army's use of simulation and training aids in enhancing soldier readiness?
The Army's investment in simulation and training aids, like those supported by this contract, is generally considered highly effective in enhancing soldier readiness. These systems provide realistic, repeatable, and safe training environments that can replicate complex scenarios without the cost and logistical challenges of live exercises. They allow soldiers to practice decision-making, tactical maneuvers, and equipment operation in a controlled setting, leading to improved proficiency and reduced risk in real-world operations. The continuous modernization and maintenance of these systems, as facilitated by contracts like this one, are crucial for ensuring that training remains relevant to current and future operational demands.
What are the historical spending patterns for the Army Training Aids, Devices, Simulators, and Simulations (ATDS&S) program?
Historical spending on the Army's ATDS&S program, under which this task order was issued, has been substantial and consistent, reflecting the enduring importance of simulation-based training. The program typically involves significant annual outlays for the procurement, development, maintenance, and sustainment of a wide array of training systems. Spending fluctuates based on modernization cycles, new technology insertions, and the operational tempo of the Army. Over the years, the program has evolved from basic simulators to highly sophisticated virtual and constructive training environments. Analyzing past annual spending figures for the parent IDIQ contract would reveal trends and the overall investment trajectory in this critical capability area.
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: $26,602,446
Exercised Options: $26,602,446
Current Obligation: $26,527,553
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $1,728,377
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
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