DoD's $19.2M SSI-K Production Contract with Lockheed Martin: A 5-Year Analysis

Contract Overview

Contract Amount: $19,233,034 ($19.2M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2007-02-07

End Date: 2012-12-31

Contract Duration: 2,154 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SSI-K PRODUCTION INSTALLS

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29605

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.2 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SSI-K PRODUCTION INSTALLS Key points: 1. The contract, valued at $19.2 million, was awarded to Lockheed Martin Services, LLC. 2. It falls under the Aircraft Manufacturing sector (NAICS 336411). 3. The contract utilized full and open competition, suggesting a competitive bidding process. 4. Awarded in 2007 and ending in 2012, it represents a past spending initiative. 5. The contract was firm fixed price, providing cost certainty for the government.

Value Assessment

Rating: fair

The contract value of $19.2 million over five years averages $3.85 million annually. Without specific benchmarks for SSI-K production, it's difficult to definitively assess pricing, but it appears moderate for a defense manufacturing contract of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple bidders were likely considered, which typically drives better price discovery and potentially lower costs for the government. This method is generally preferred for maximizing competition.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the goods or services procured, as market forces were allowed to operate.

Public Impact

This contract supported the production of SSI-K systems, contributing to national defense capabilities. The duration of over five years indicates a sustained need for these systems. Lockheed Martin, a major defense contractor, was the recipient, highlighting industry concentration. The firm fixed price contract type provided budget predictability for the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes.
Limited insight into the actual value delivered beyond production.
No indication of small business participation.

Positive Signals

Utilized full and open competition.
Firm fixed price contract type for cost certainty.
Awarded to a major defense contractor with established capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this sector is often characterized by high R&D costs, complex supply chains, and long production cycles. Benchmarks are highly specific to the type of aircraft or system being produced.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting goals were explicitly met or tracked for this contract (ss: false, sb: false). This suggests that opportunities for small businesses may have been limited in this specific procurement.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Further oversight details regarding quality assurance or delivery schedules are not provided in this data.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Contract duration of over 5 years.
Managed by a single large prime contractor.
No explicit mention of small business participation.
Limited detail on performance outcomes or specific system value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.2 million to LOCKHEED MARTIN SERVICES, LLC. SSI-K PRODUCTION INSTALLS

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, 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 $19.2 million.

What is the period of performance?

Start: 2007-02-07. End: 2012-12-31.

What was the specific nature and function of the SSI-K production, and how did it contribute to the Department of Defense's mission?

The provided data does not specify the exact nature or function of the SSI-K production. However, given the contractor (Lockheed Martin) and the sector (Aircraft Manufacturing), it likely pertains to components, systems, or platforms integral to military aviation. Its contribution would be tied to the operational readiness and capabilities of the U.S. armed forces.

Were there any identified risks associated with the SSI-K production contract, such as cost overruns or schedule delays, despite the firm fixed price structure?

While a firm fixed price contract aims to mitigate cost overrun risks, other risks like schedule delays, quality issues, or performance deficiencies can still arise. The limited data does not detail any specific risks encountered during the contract's execution, but the duration suggests potential for such issues over a five-year period.

How effective was the full and open competition in ensuring the best value for the government in this specific SSI-K production contract?

The use of full and open competition is generally considered effective in promoting value by fostering a competitive environment. However, the ultimate effectiveness depends on the number and quality of bids received, the specific requirements of the SSI-K production, and the government's evaluation process. Without comparative data or post-award reviews, a definitive assessment of 'best value' is challenging.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 400 BROOKFIELD PARKWAY, GREENVILLE, SC, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,233,034

Exercised Options: $19,233,034

Current Obligation: $19,233,034

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001905D0013

IDV Type: IDC

Timeline