DoD awards $20.8M for National Training Center Live Fire services to Lockheed Martin

Contract Overview

Contract Amount: $20,853,682 ($20.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SERVICES NATIONAL TRAINING CENTER LIVE FIRE

Place of Performance

Location: FORT IRWIN, SAN BERNARDINO County, CALIFORNIA, 92310

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to LOCKHEED MARTIN CORPORATION for work described as: SERVICES NATIONAL TRAINING CENTER LIVE FIRE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating potential for future task orders. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of 364 days suggests a focused, short-term requirement for these services. 5. The contract is not set aside for small businesses, implying larger prime contractors are expected to perform the work. 6. The engineering services NAICS code (541330) points to specialized technical expertise required for live fire training.

Value Assessment

Rating: good

The total award amount of $20.8 million for a 364-day period for live fire training services appears reasonable given the specialized nature of the work and the contractor's expertise. Benchmarking against similar large-scale training support contracts is difficult without more specific service details, but the fixed-price structure provides cost certainty. The contract value is a single delivery order, so it represents a portion of potential overall spending under an IDIQ.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The use of full and open competition suggests that the requirement was not restricted to specific categories of contractors.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will receive enhanced live fire training at the National Training Center. The services delivered are critical for maintaining combat readiness and proficiency for military units. The geographic impact is concentrated at the National Training Center in California, a key training facility. The contract supports specialized technical and engineering roles, potentially impacting the workforce within the defense services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs, despite fixed-price contract.
Dependence on a single large contractor (Lockheed Martin) for critical training support.
Risk of performance issues if specialized personnel are not adequately retained or deployed.
Limited visibility into subcontracting opportunities for smaller businesses.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Fixed-price contract type helps control costs for the government.
Contractor (Lockheed Martin) is a major defense contractor with extensive experience.
Delivery order under an IDIQ provides flexibility for future needs.
Clear performance period (364 days) for the awarded services.

Sector Analysis

The defense training and simulation sector is a significant market within the broader aerospace and defense industry. This contract for live fire training services at the National Training Center falls within the engineering and technical support segment. Spending in this area is driven by the need for realistic and effective military training to maintain operational readiness. Comparable spending benchmarks would typically involve other large-scale training facility operations and simulation support contracts within the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting goals for small businesses in the provided data. As a large prime contract awarded to a major defense corporation, the primary performance is likely to be executed by the prime contractor or its large subcontractors. This may limit direct opportunities for small businesses to participate in this specific award, though they may be involved in the broader IDIQ contract's ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

National Training Center Operations and Support
Military Training and Simulation Services
Live Fire Range Operations
Defense Engineering Services
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for cost growth if scope is not well-defined.
Performance risk associated with specialized technical services.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to LOCKHEED MARTIN CORPORATION. SERVICES NATIONAL TRAINING CENTER LIVE FIRE

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 $20.9 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is Lockheed Martin's track record with similar live fire training support contracts for the Department of Defense?

Lockheed Martin Corporation, a major defense contractor, has a long history of providing a wide range of services to the DoD, including training, simulation, and range support. While specific details on their live fire training contracts are not provided here, their extensive experience in complex defense programs suggests a capability to manage such requirements. Past performance evaluations on similar contracts would be a key factor in their selection. Reviewing historical contract awards and performance reviews for Lockheed Martin in training and simulation would offer further insight into their reliability and expertise in this domain.

How does the $20.8 million award compare to historical spending on live fire training services at the National Training Center?

Without access to historical spending data specifically for live fire training services at the National Training Center, a direct comparison is not possible. The provided data represents a single delivery order valued at $20.8 million with a duration of 364 days. The total annual spending on NTC live fire training could be significantly higher or lower depending on the number and value of delivery orders issued under the parent IDIQ contract, as well as the scope of services required each year. A comprehensive analysis would require examining multiple years of contract awards related to NTC training support.

What are the key performance indicators (KPIs) for this contract, and how are they monitored?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for live fire training services, typical KPIs would likely include safety compliance, adherence to training schedules, equipment readiness and functionality, environmental impact mitigation, and the overall effectiveness of the training environment in meeting military objectives. Performance monitoring would be conducted by the contracting officer's representative (COR) from the Department of the Army, who would assess Lockheed Martin's adherence to the contract's statement of work, technical requirements, and delivery schedules.

What is the potential risk associated with the fixed-price contract type for these specialized services?

The firm-fixed-price (FFP) contract type aims to provide cost certainty for the government. However, for highly specialized services like live fire training, there's a potential risk if unforeseen technical challenges or scope changes arise that were not adequately anticipated during the bidding process. If Lockheed Martin encounters significant unexpected costs or difficulties in delivering the specified services, they may absorb those losses, potentially impacting their motivation or ability to perform optimally. Conversely, if the contractor significantly underbid the work, they might seek to reduce costs through less robust service delivery, though contract oversight should mitigate this.

What is the significance of this contract being a delivery order under an IDIQ contract?

This contract being a delivery order under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies that it is one of potentially many task orders to be issued against a broader, pre-negotiated contract vehicle. The IDIQ contract establishes terms, conditions, and potentially ceiling prices for a range of services over a period. This specific delivery order represents a defined task with a set scope, price, and period of performance ($20.8M for 364 days). The IDIQ structure allows the Department of the Army flexibility to order services as needed, while the delivery order formalizes a specific requirement.

Are there any small business subcontracting requirements associated with this $20.8 million award?

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Typically, for large prime contracts awarded through full and open competition, there may or may not be specific small business subcontracting goals mandated. Without explicit information on subcontracting plans or goals within the contract documents, it's difficult to ascertain the extent of small business participation. However, large prime contractors like Lockheed Martin often have established relationships with small businesses for various support functions, even if not formally mandated for every award.

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: $20,892,785

Exercised Options: $20,892,785

Current Obligation: $20,853,682

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $9,214,493

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