DoD awards $83.6M for Systems Engineering Services to Lockheed Martin, impacting Iraq operations
Contract Overview
Contract Amount: $15,167,558 ($15.2M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2005-09-19
End Date: 2006-11-14
Contract Duration: 421 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 200512!500696!2100!W9128Z!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!Y603 ! !20050919!20060918!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!00000! !IZ!* !* !IRAQ !+000004500000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !20200930!B! ! !N!Z!A!N!Y!2!003!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y! ! ! !0001! !
Place of Performance
Location: WALL TOWNSHIP, MONMOUTH County, NEW JERSEY, 07719, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $15.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200512!500696!2100!W9128Z!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!Y603 ! !20050919!20060918!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!00000! !IZ!* !* … Key points: 1. Contract awarded for critical Systems Engineering Services, supporting Iraq operations. 2. Significant value of $83.6 million awarded to a major defense contractor. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Research and Development, indicating advanced technical services.
Value Assessment
Rating: good
The contract value of $83.6 million for Systems Engineering Services appears reasonable given the duration and the nature of the services provided. Benchmarking against similar large-scale R&D contracts would offer further insight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of Time and Materials pricing could lead to cost overruns if not closely monitored.
Taxpayer Impact: The competitive award process is intended to ensure taxpayer funds are used efficiently, though the Time and Materials pricing structure warrants careful oversight to control final costs.
Public Impact
Supports critical defense operations in Iraq, potentially impacting national security. Involves advanced systems engineering, contributing to technological development in defense. Award to a large, established contractor like Lockheed Martin suggests reliance on proven capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost uncertainty.
- Contract duration of over a year requires ongoing monitoring.
- Services supporting active conflict zones carry inherent risks.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense objectives.
- Utilizes a well-established contractor with relevant expertise.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on systems engineering for electronics and communication equipment. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The contract was awarded to Lockheed Martin Integrated Systems, LLC, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract was managed by the Department of Defense, specifically the Defense Contract Management Agency. Oversight would focus on ensuring performance and adherence to contract terms, especially given the operational context.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Contract duration and operational context in Iraq present execution risks.
- Lack of explicit small business participation.
- Dependence on a single large contractor for critical services.
Tags
research-and-development-in-the-physical, department-of-defense, nj, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200512!500696!2100!W9128Z!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB009 !A!N! !Y!Y603 ! !20050919!20060918!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!00000! !IZ!* !* !IRAQ !+000004500000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !202
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.2 million.
What is the period of performance?
Start: 2005-09-19. End: 2006-11-14.
What specific systems engineering services were provided under this contract, and how did they directly contribute to the operational effectiveness in Iraq?
The contract specified 'SYSTEMS ENGINEERING SERVICES' and 'ELECTRONICS AND COMMUNICATION EQUIP'. These services likely involved the design, integration, testing, and maintenance of communication and electronic systems crucial for military operations in Iraq. Their contribution would be in ensuring reliable command and control, intelligence gathering, and operational coordination for deployed forces.
Given the Time and Materials pricing, what mechanisms were in place to control costs and prevent overruns during the contract period?
While the data indicates Time and Materials pricing, specific cost control mechanisms are not detailed. Typically, such contracts include labor hour limitations, fixed-price components for certain deliverables, and robust oversight by the contracting officer's representative to monitor hours and expenses, ensuring alignment with the contract's ceiling and necessity.
How did the 'full and open competition' process ensure the best value for the government, considering the specialized nature of the services and the contractor's expertise?
Full and open competition allows any qualified vendor to bid, fostering a competitive environment that theoretically drives down prices and encourages innovation. For specialized services like systems engineering for defense, the government likely established clear technical requirements and evaluation criteria to ensure that the winning bid represented not only a competitive price but also the best technical solution and capability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1800 RT. 34, BLDG. 4, STE 405, BELMAR, NJ, 07719
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB009
IDV Type: IDC
Timeline
Start Date: 2005-09-19
Current End Date: 2006-11-14
Potential End Date: 2006-11-14 00:00:00
Last Modified: 2015-05-04
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