INPUT Government Technology Market Blog

Lockheed Hits the Ceiling While Competition Goes Through the Roof

While the presidential candidates contend for the national spotlight, another competition is heating up away from the limelight. The U.S. Army's Communications and Electronic Command (CECOM) released the pre-solicitation notice for the Rapid Response 3rd Generation (R23G) on March 18, 2008.

R23G provides a streamlined task order process that allows agencies to rapidly obtain contractor services in support of urgent requirements. With an estimated ceiling value of $34.1 billion, the program is sure to attract a wide range of vendor hopefuls.

This could prove bad timing for Lockheed Martin Integrated Systems, one of the prime contractors for R23G's predecessor, CR2. According to the CR2 website, Lockheed Martin Integrated Systems has hit their contract maximum award value and will not be able to bid on any new CR2 RTEPs. The moratorium will be lifted if Lockheed is able to identify enough task orders with excess ceilings that can be reduced.

According to available data from CECOM, Arinc Inc may also be closing in on their ceiling. Perhaps more surprising is how underutilized Northrop Grumman and SRA have been. It is unclear how this will affect their position in the recompete.

The 8 CR2 Prime Contractors: Current Value/Ceiling

  • Arinc Inc: 2.83/2.7B
  • Computer Sciences Corporation: 1.76/3B
  • Northrop Grumman Corporation: .96/2.7B
  • Lockheed Martin Integrated Services: 3.26/2.9B
  • Lear Siegler Services Inc: 1.15/3B
  • SRA International: .52/2.7B
  • VSE Corporation: 1.75/2.9B
  • Tamsco: 2.16/2.9B
Since FY03, CECOM has awarded over 1,442 task orders through CR2 totaling over $14 billion. CR2 is available to all federal agencies and advertises a competitive 19-day award cycle. CR2 has an aggregate award ceiling of $23.2 billion and runs, with options, through FY11.

Basically CR2 on growth hormones, R23G will have up to 10 prime contractors, including 4 awards set aside for small business, and an estimated ceiling value of $34.1 billion. Awards will have a 5-year base with one 2-year option period.

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