DoD awards $16.5M engineering services task order to Lockheed Martin for operating period 7
Contract Overview
Contract Amount: $16,491,159 ($16.5M)
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: $45.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ESTABLISH TASK ORDER 10 FOR OPERATING PERIOD 07
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32828
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $16.5 million to LOCKHEED MARTIN CORPORATION for work described as: ESTABLISH TASK ORDER 10 FOR OPERATING PERIOD 07 Key points: 1. Task order represents a significant investment in ongoing engineering support. 2. Contract awarded to a major defense contractor suggests a need for specialized, high-level expertise. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. Performance period aligns with typical annual operational cycles. 5. Geographic focus on Florida may indicate specific program requirements or facility needs. 6. Absence of small business set-aside warrants review of subcontracting opportunities.
Value Assessment
Rating: good
The $16.5 million award for a 364-day period appears reasonable for specialized engineering services, especially given the contractor's established presence in defense. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide further context on value for money. The firm fixed-price structure is a positive indicator for cost control.
Cost Per Unit: N/A
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 generally expected to yield fair market pricing and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value and competitive pricing for essential engineering services.
Public Impact
Benefits the Department of Defense by ensuring continued access to critical engineering expertise. Supports national defense objectives through specialized technical services. Services are likely to be performed in Florida, impacting the local economy and workforce. May involve highly skilled engineers and technical personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the scope of work for this task order.
- Potential for cost overruns if unforeseen technical challenges arise, despite fixed-price structure.
- Limited insight into the number of competitors and their respective bids.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process.
- Firm fixed-price contract type provides cost certainty.
- Contractor is a well-established entity with a proven track record in defense contracting.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for defense engineering services is substantial, characterized by long-term relationships between government agencies and specialized contractors. This award to Lockheed Martin, a prime contractor, aligns with industry trends where large, complex projects are often managed by major players who can leverage extensive resources and expertise.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While awarded under full and open competition, it is crucial to assess if Lockheed Martin has a robust subcontracting plan that includes opportunities for small businesses to participate in delivering these engineering services. Without specific subcontracting goals, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this task order would typically fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency regarding the specific deliverables and performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Lockheed Martin Defense Contracts
- Army Corps of Engineers Support Contracts
- Florida Defense Spending
Risk Flags
- Potential for scope creep if not clearly defined.
- Reliance on a single large contractor may limit future competition.
- Need to verify small business subcontracting participation.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, lockheed-martin, firm-fixed-price, full-and-open-competition, task-order, florida, operational-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.5 million to LOCKHEED MARTIN CORPORATION. ESTABLISH TASK ORDER 10 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 $16.5 million.
What is the period of performance?
Start: 2024-07-01. End: 2025-06-30.
What is Lockheed Martin's historical performance on similar engineering services contracts with the Department of Defense?
Lockheed Martin Corporation is a major defense contractor with extensive experience in providing engineering services across various platforms and programs for the Department of Defense. Historical data suggests a generally strong performance record, often characterized by successful delivery on complex, high-value contracts. However, like any large contractor, there can be instances of performance issues or contract disputes on specific projects. A detailed review of past performance evaluations, contract awards, and any associated corrective actions or penalties would be necessary for a comprehensive assessment. The sheer volume and complexity of their work mean that occasional challenges are not unexpected, but their sustained position as a prime contractor indicates a generally satisfactory level of performance and capability.
How does the $16.5 million value of this task order compare to other engineering services contracts awarded by the Department of the Army in the last fiscal year?
The $16.5 million value for this task order represents a significant, but not exceptionally large, award within the Department of the Army's engineering services portfolio. The Army procures a wide range of engineering support, from small, specialized consulting tasks to multi-billion dollar program support. Awards in the tens of millions are common for substantial, multi-month operational support. To provide a precise comparison, one would need to analyze the distribution of all engineering services contract values awarded by the Army in the last fiscal year. If the majority of similar operational support task orders fall within the $10-$25 million range, then this award is well within the typical benchmark. If most are significantly smaller or larger, it might indicate a unique scope or scale for this particular task order.
What are the primary risks associated with this firm fixed-price contract for engineering services?
The primary risk for the government with a firm fixed-price (FFP) contract is that the contractor may not be incentivized to control costs beyond the agreed-upon price, potentially leading to reduced quality or scope if unforeseen issues arise. For Lockheed Martin, the risk lies in accurately estimating all costs associated with delivering the engineering services over the 364-day period. If unexpected technical challenges, material cost increases, or labor shortages occur, the contractor bears the financial burden. However, FFP contracts are generally preferred for well-defined scopes of work where risks can be reasonably assessed, as they provide cost certainty to the government. The success of this contract hinges on the accuracy of the initial scope definition and cost estimation by both parties.
What specific engineering services will be delivered under this task order, and how do they contribute to the Army's mission?
The provided data indicates this is an 'ESTABLISH TASK ORDER 10 FOR OPERATING PERIOD 07' for 'Engineering Services' (NAICS 541330) with a performance period from July 1, 2024, to June 30, 2025. While the specific nature of the engineering services is not detailed, 'Operating Period 07' suggests this is a continuation or a specific phase of a larger, ongoing program or project. These services could encompass a wide range of activities, such as systems engineering, design, analysis, testing, integration, or technical support for military platforms, equipment, or infrastructure. The contribution to the Army's mission would depend on the underlying program, but generally, such services are critical for maintaining readiness, developing new capabilities, ensuring operational effectiveness, and supporting the lifecycle management of defense assets.
What has been the historical spending trend for engineering services by the Department of the Army, and how does this award fit within that trend?
The Department of the Army consistently spends billions of dollars annually on engineering services, reflecting the complexity and scale of its operations and equipment sustainment. This spending encompasses a broad spectrum, from research and development to operational support and infrastructure management. Awards like this $16.5 million task order are typical components of the Army's overall engineering services budget. Analyzing historical spending trends would involve examining aggregate data for NAICS code 541330 awarded by the Department of the Army over several fiscal years. This specific award, being for a single operating period, fits within the pattern of recurring, task-order-based procurements that form the backbone of ongoing support for major defense programs and systems.
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: $17,868,265
Exercised Options: $17,868,265
Current Obligation: $16,491,159
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $7,817,612
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: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-10-31
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