The Defense Department June 21 awarded Lockheed Martin‘s [LMT] Information Systems & Global Services, Gaithersburg, Md., a potential $5 billion contract to support U.S. Special Operations Command, the same contract the company lost to rival L-3 Communications [LLL] a year ago.
The indefinite-delivery/indefinite-quantity contract has mixed payment provisions including firm-fixed-price, incentive, and cost-reimbursable arrangements for contractor logistics support services for worldwide SOCOM support.
The work, expected to run until March 1, 2018, will be done at Special Operations Forces Support Activity in Lexington, Ky., and other global locations across the globe.
L-3 was the incumbent when the contract was awarded to Lockheed Martin in March 2009, but the contract was terminated because of protest activity in June 2009, pending a recompetition.
The contract is being reinstated to meet urgent operational requirements, the DoD contract announcement said.
Earlier this month, the L-3 unit performing work on the contract was suspended from receiving new government contracts or orders, including on the SOCom contract, because of an ongoing investigation into improper monitoring of a government e-mail system.
“We have seen no indication that the investigation has turned up wrongdoing in other areas of the company and do not expect this situation to have an impact on L-3’s business outside of the [Joint Operations group] contract,” according to a Morgan Keegan Equity Research Industry note.