DoD Exercises $20M PMO Labor Order for ATMP Contract with Lockheed Martin
Contract Overview
Contract Amount: $19,967,539 ($20.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-07-01
End Date: 2025-12-30
Contract Duration: 547 days
Daily Burn Rate: $36.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS AWARD IS TO EXERCISE ORDERING PERIOD 7 FOR THE PROGRAM MANAGEMENT OFFICE (PMO) LABOR FOR THE ATMP CONTRACT W900KK-18-D-0018, DELIVERY ORDER W900KK-24-F-701
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $20.0 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS AWARD IS TO EXERCISE ORDERING PERIOD 7 FOR THE PROGRAM MANAGEMENT OFFICE (PMO) LABOR FOR THE ATMP CONTRACT W900KK-18-D-0018, DELIVERY ORDER W900KK-24-F-701 Key points: 1. Significant contract value of $19.97 million for program management services. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. Potential risk associated with long-term reliance on a single large vendor. 4. Spending falls within the Engineering Services sector.
Value Assessment
Rating: good
The $19.97 million for 547 days of labor suggests a substantial daily rate. Benchmarking against similar program management contracts for large defense programs is needed to confirm value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential program management services.
Public Impact
Ensures continued program management for the ATMP contract. Supports critical Department of the Army initiatives. Maintains operational capacity for defense program execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (547 days) may limit flexibility.
- Sole awardee for this specific order could indicate limited market options.
Positive Signals
- Awarded under full and open competition.
- Supports a key Department of Defense program.
Sector Analysis
This award falls under Engineering Services (NAICS 541330), a sector crucial for defense program development and execution. Spending benchmarks for similar large-scale program management support are typically in the multi-million dollar range.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business participation was incorporated through subcontracting.
Oversight & Accountability
The award is a delivery order under an existing contract (W900KK-18-D-0018), suggesting prior oversight. Continued monitoring of performance and costs throughout this ordering period is essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Significant contract value.
- Long duration of the ordering period.
- Potential for scope creep in PMO services.
- Reliance on a single large contractor.
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS AWARD IS TO EXERCISE ORDERING PERIOD 7 FOR THE PROGRAM MANAGEMENT OFFICE (PMO) LABOR FOR THE ATMP CONTRACT W900KK-18-D-0018, DELIVERY ORDER W900KK-24-F-701
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 $20.0 million.
What is the period of performance?
Start: 2024-07-01. End: 2025-12-30.
What specific program management functions are covered by this $20M order, and how do they align with ATMP contract objectives?
This order covers Program Management Office (PMO) labor for Ordering Period 7 of the ATMP contract. The specific functions likely include project planning, execution oversight, risk management, stakeholder communication, and resource coordination essential for achieving the ATMP contract's overarching goals. Detailed statements of work within the delivery order would specify these functions and their direct alignment with program milestones and deliverables.
What are the key risks associated with extending PMO labor support for another 547 days under this contract?
Key risks include potential cost overruns if labor rates are not competitive or if scope creep occurs. There's also a risk of vendor lock-in, reducing future flexibility in sourcing PMO support. Furthermore, if the contractor's performance degrades, it could impact the overall ATMP program timeline and effectiveness, necessitating difficult corrective actions.
How does the firm-fixed-price contract type ensure effective cost control and value for this significant PMO labor expenditure?
The firm-fixed-price (FFP) type contract establishes a ceiling price, incentivizing the contractor to manage costs efficiently to maximize profit. This structure provides the government with cost certainty, as the price is set upfront. However, effective value is still dependent on robust performance metrics and oversight to ensure the labor provided is necessary, efficient, and meets quality standards.
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: $19,967,539
Exercised Options: $19,967,539
Current Obligation: $19,967,539
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $79,360
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: 2024-07-01
Current End Date: 2025-12-30
Potential End Date: 2025-12-30 00:00:00
Last Modified: 2025-08-20
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