Federal Contract Types

1488 Words6 Pages
STRAYER UNIVERSITY Federal Contracting Activities and Contract Types Carlita Sims Dr. Nelson Bus 315 Cost and Price Analysis June 16, 2013 After reviewing the 2012 Top 100 contractors from the Washington Technology I chose Lockheed Martin Corporation. They are the number one on the Washington Technology List with current standing revenue of $17,438,128,000. As of 2012, they employed 123,000at their headquarters in Bethesda, Md. They’re lines of business is information systems, aeronautics, spaces systems. (Lokey, 2012). There major customers are the Armed Forces, as well as NASA, and National Science Foundation. Some of the major contracts or projects have been the CIO-SP3, GSA Alliant, GSA schedules, Aegis, U.S. Antarctica…show more content…
Another reason, that they chose firm-fixed-price contract was because they still had to discuss all factors and realize that they are estimates. Good for Lockheed Martin and why firm-fixed-price was better than the other contracts was basically due to once they negotiated a price and a contract was awarded the government was “locked-in” to paying that price. (Murphy, 2009). MFC has a headquarters in Dallas, Texas as well as a second major facility in Orlando, Fla. Additional facilities are located in nine U.S. states as well as Japan and the United Kingdom. (NIST.gov, 2012). These are some direct and indirect costs reasoning due to them having to move and ship many products back and forth. Also, they have to deal with the direct labor of the company that manufactures these items such as the rocket, missiles, etc. Plus, with them being in several different areas in the U.S. they have to pay taxes and insurance in these states as well as whatever is needed overseas for them to…show more content…
(Lockheed Martin Corporation History, 1996). This second graph as you can see is showing how Lockheed Martin Corporation has grown and has dominated in the defense area over the last four years and are at just mid line with the civilian departments. What is really interesting is that all of these divisions have different kinds of awards and they are both taking direct and indirect cost in different ways. However, I had to choose the shortest and straight to the point examples because they have so many contracts and deal in so many ways from firm-fixed price, cost reimbursement, cost-plus-fixed-fee, etc. One situation was the Lockheed Martin Corporation v. United States of America in 9/29/09 which is based on an indirect cost. One example was environmental cleanup costs that could be treated as indirect costs if they meet the three criteria. (LOCKHEED MARTIN CORP.v. U.S., 2009). Lockheed Martin was a difficult corporation due to them dealing is so many defense and civilian areas. Also, with them having a variety of divisions they have made themselves a very powerful company.

More about Federal Contract Types

Open Document