DoD's $41M Lockheed Martin Task Order for Engineering Services in Florida Shows Stable Pricing

Contract Overview

Contract Amount: $41,167,935 ($41.2M)

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: $113.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ESTABLISH TASK ORDER 08 FOR OPERATING PERIOD 07

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32828

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to LOCKHEED MARTIN CORPORATION for work described as: ESTABLISH TASK ORDER 08 FOR OPERATING PERIOD 07 Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and duration. 2. Full and open competition suggests a healthy market for these engineering services. 3. No immediate risk indicators are apparent from the contract details provided. 4. Performance context is tied to operating period 7, implying ongoing program support. 5. This contract fits within the broader Defense sector's need for specialized engineering. 6. The contract is a delivery order, indicating a specific task within a larger framework.

Value Assessment

Rating: good

The $41.2 million task order for engineering services, awarded to Lockheed Martin Corporation, appears to represent good value. The firm-fixed-price contract type helps control costs over its 364-day duration. While direct comparisons to similar contracts are limited without more specific service details, the price per day is approximately $113,000. This figure should be benchmarked against industry rates for comparable engineering support within the defense sector.

Cost Per Unit: Approximately $113,099 per day (based on total award and duration).

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive price discovery and ensure that the government receives a fair market price. The specific number of bidders is not provided, but the designation suggests a robust competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace that encourages competitive pricing and potentially leads to cost savings compared to less competitive award methods.

Public Impact

The Department of the Army benefits from specialized engineering services to support its operations. This contract likely supports critical defense infrastructure or program development. The geographic impact is focused on Florida, where the services are presumably delivered. The contract supports the defense industrial workforce, particularly in engineering disciplines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task order requirements are not tightly managed.
Dependence on a single large contractor for critical engineering functions.

Positive Signals

Firm-fixed-price contract limits cost overruns.
Full and open competition suggests a competitive market.
Delivery order structure allows for phased execution of tasks.
Awarded to a known entity with significant defense contracting experience.

Sector Analysis

The defense engineering services sector is a critical component of national security, encompassing a wide range of specialized technical support. This contract, valued at approximately $41 million, falls within the broader market for professional, scientific, and technical services, which is substantial within the federal government's procurement landscape. Comparable spending often involves complex system design, integration, and sustainment for military platforms and infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting requirements (ss: false). This suggests that the primary award went to a large business, Lockheed Martin Corporation. While this specific task order may not directly benefit small businesses, the overall defense ecosystem often involves significant subcontracting opportunities for smaller firms on larger prime contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle, its execution is monitored against defined milestones and deliverables. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Army Combat Systems Support
Professional, Scientific, and Technical Services Contracts
Lockheed Martin Corporation Contracts

Risk Flags

Contract awarded to a large business prime.
No small business subcontracting plan identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to LOCKHEED MARTIN CORPORATION. ESTABLISH TASK ORDER 08 FOR OPERATING PERIOD 07

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 $41.2 million.

What is the period of performance?

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

What is Lockheed Martin Corporation's track record with the Department of the Army for similar engineering services?

Lockheed Martin Corporation is a major defense contractor with extensive experience providing engineering and technical services to the Department of the Army and other military branches. Historical data indicates a long-standing relationship involving numerous contracts across various platforms and systems. While specific performance metrics for this exact task order are not yet available as it is newly established, the company's overall track record suggests a high level of capability. However, like any large contractor, past performance reviews and any associated issues would need to be examined for a comprehensive assessment. The 'ESTABLISH TASK ORDER 08 FOR OPERATING PERIOD 07' designation implies this is part of an ongoing, potentially multi-year, support effort where performance has likely been evaluated in prior operating periods.

How does the daily cost of this contract compare to industry benchmarks for defense engineering services?

The daily cost for this task order is approximately $113,099. Benchmarking this against industry standards requires a detailed understanding of the specific engineering services provided, such as systems engineering, software development, or specialized technical consulting. Generally, high-level, specialized engineering support for complex defense systems can command significant daily rates. Without more granular data on the service scope, it's challenging to provide a precise comparison. However, given Lockheed Martin's position as a prime defense contractor and the firm-fixed-price nature of the award, this rate suggests a competitive bid for specialized expertise. Further analysis would involve comparing this rate to other similar task orders issued by the Army or DoD for comparable services, considering factors like security clearances, required expertise, and geographic location.

What are the primary risks associated with this specific task order?

The primary risks associated with this task order are related to execution and potential scope creep. As a delivery order for operating period 07, there's an inherent risk that the defined tasks may evolve or expand beyond the initial scope if not managed meticulously. Dependence on a single large contractor, Lockheed Martin, could also pose a risk if performance issues arise or if there are unforeseen disruptions. However, the firm-fixed-price contract type mitigates financial risk for the government by capping costs. The full and open competition suggests a competitive market, which generally reduces risks associated with contractor capability. Risks related to national security or data breaches would be standard for defense contracts and are typically addressed through stringent security protocols and oversight.

What is the expected program effectiveness or outcome of this engineering support?

The expected program effectiveness of this engineering support is to ensure the continued operational readiness and advancement of a specific Department of the Army program or system. As Task Order 08 for Operating Period 07, it signifies ongoing support critical to maintaining or enhancing existing capabilities. The engineering services likely encompass areas such as system sustainment, upgrades, technical analysis, or integration of new technologies. The success of this task order will be measured by its contribution to the Army's mission objectives, such as improved system performance, reduced downtime, enhanced security, or successful implementation of new functionalities. The firm-fixed-price structure incentivizes Lockheed Martin to deliver efficiently within the agreed budget to achieve these outcomes.

How has federal spending on engineering services by the Department of the Army trended over the past five years?

Federal spending on engineering services by the Department of the Army has historically been substantial, reflecting the complexity and scale of military operations and modernization efforts. While specific figures for 'engineering services' can vary based on classification (e.g., NAICS codes), the overall trend generally shows consistent, high levels of investment. The Army relies heavily on external expertise for areas like systems engineering, research and development support, technical consulting, and infrastructure design. Spending often fluctuates based on defense budgets, strategic priorities, and the lifecycle of major weapon systems. Periods of significant modernization or new program development typically see increased spending. The award of this $41 million task order is indicative of the ongoing need for such specialized services, suggesting continued robust investment in this category.

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: $41,486,935

Exercised Options: $41,486,935

Current Obligation: $41,167,935

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $3,268,955

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