DoD Awards $45.8M to Lockheed Martin for Persistent Threat Detection System Maintenance
Contract Overview
Contract Amount: $45,805,566 ($45.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-01-13
End Date: 2015-01-12
Contract Duration: 364 days
Daily Burn Rate: $125.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 1. THE PURPOSE OF THIS TASK ORDER, 0003, IS TO PROVIDE CONUS ABOVE USER LEVEL MAINTENANCE AND SUPPLY SUFFICIENT CONUS AND OCONUS MATERIALS TO ENSURE A 90% AO FOR PERSISTENT THREAT DETECTION SYSTEM (PTDS) IN AFGHANISTAN AS WELL AS PROVIDING CONUS RESET SERVICES AND ASSOCIATED MATERIALS TO RESTORE PTDS TO FULLY MISSION CAPABLE (FMC).
Place of Performance
Location: AKRON, SUMMIT County, OHIO, 44315
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $45.8 million to LOCKHEED MARTIN CORPORATION for work described as: 1. THE PURPOSE OF THIS TASK ORDER, 0003, IS TO PROVIDE CONUS ABOVE USER LEVEL MAINTENANCE AND SUPPLY SUFFICIENT CONUS AND OCONUS MATERIALS TO ENSURE A 90% AO FOR PERSISTENT THREAT DETECTION SYSTEM (PTDS) IN AFGHANISTAN AS WELL AS PROVIDING CONUS RESET SERVICES AND ASSOCIATED MATE… Key points: 1. High value contract for critical defense system maintenance. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Focus on ensuring 90% availability for PTDS in Afghanistan. 4. Contract includes CONUS reset services for system restoration.
Value Assessment
Rating: fair
The contract value of $45.8M for a one-year period suggests a significant investment. Without comparable contracts for similar system maintenance, a precise pricing assessment is difficult, but the cost-plus-fixed-fee structure warrants scrutiny for potential overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive environment.
Taxpayer Impact: The lack of competition for this substantial contract may result in taxpayers paying more than necessary for the maintenance and restoration of the PTDS.
Public Impact
Ensures continued operational capability of a critical threat detection system. Supports military operations in Afghanistan by maintaining system readiness. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competition
Positive Signals
- Ensures critical system availability
- Supports ongoing military operations
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the maintenance and sustainment of specialized detection and navigation systems. Spending in this area is crucial for national security but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation and does not mention any subcontracting to small businesses. Further investigation would be needed to determine if small business participation was considered or achieved.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense and the Defense Contract Management Agency to ensure fair pricing and effective performance, mitigating risks associated with non-competitive contracts.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus-fixed-fee contract type can lead to cost overruns.
- Lack of transparency regarding the justification for sole-sourcing.
- Potential for contractor to prioritize profit over cost efficiency.
Tags
search-detection-navigation-guidance-aer, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.8 million to LOCKHEED MARTIN CORPORATION. 1. THE PURPOSE OF THIS TASK ORDER, 0003, IS TO PROVIDE CONUS ABOVE USER LEVEL MAINTENANCE AND SUPPLY SUFFICIENT CONUS AND OCONUS MATERIALS TO ENSURE A 90% AO FOR PERSISTENT THREAT DETECTION SYSTEM (PTDS) IN AFGHANISTAN AS WELL AS PROVIDING CONUS RESET SERVICES AND ASSOCIATED MATERIALS TO RESTORE PTDS TO FULLY MISSION CAPABLE (FMC).
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $45.8 million.
What is the period of performance?
Start: 2014-01-13. End: 2015-01-12.
What is the justification for the sole-source award of this contract?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without specific documentation, it's difficult to ascertain the precise reason. However, for critical systems like the PTDS, the government may argue that only the original manufacturer or a highly specialized entity can provide the necessary maintenance and parts to ensure operational readiness.
What are the potential risks associated with a cost-plus-fixed-fee contract for system maintenance?
Cost-plus-fixed-fee (CPFF) contracts carry inherent risks, primarily the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of increased costs. For maintenance, this could lead to higher-than-expected expenditures if unforeseen issues arise or if the contractor's cost estimation is inaccurate.
How does the 90% AO requirement impact the overall cost and effectiveness of the contract?
The 90% Availability Objective (AO) for the Persistent Threat Detection System (PTDS) is a demanding performance standard. Achieving and maintaining this level of readiness likely requires significant resources, including personnel, parts, and logistical support. This high AO directly influences the contract's cost, as ensuring such availability necessitates proactive maintenance and rapid response to failures, potentially increasing the overall expenditure.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1210 MASSILLIN RD, AKRON, OH, 44315
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: $45,805,566
Exercised Options: $45,805,566
Current Obligation: $45,805,566
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $3,139,897
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T13DC111
IDV Type: IDC
Timeline
Start Date: 2014-01-13
Current End Date: 2015-01-12
Potential End Date: 2015-01-12 00:00:00
Last Modified: 2019-04-15
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