Department of the Navy awards $651M contract for Israeli unique spares to Lockheed Martin
Contract Overview
Contract Amount: $651,104,357 ($651.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-03-31
End Date: 2023-01-30
Sector: Defense
Official Description: ISRAEL UNIQUE SPARES
Plain-Language Summary
Department of Defense obligated $651.1 million to LOCKHEED MARTIN CORPORATION for work described as: ISRAEL UNIQUE SPARES Key points: 1. Significant investment in specialized defense components. 2. Sole provider identified, raising competition concerns. 3. Long-term contract duration indicates ongoing need. 4. Potential for cost overruns due to limited sourcing.
Value Assessment
Rating: good
The contract value of over $651 million represents a substantial commitment by the Department of the Navy for critical spare parts. The award was made via a delivery order, suggesting it's part of a larger, pre-existing agreement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded to Lockheed Martin Corporation as a sole-source acquisition. This indicates that only one vendor was deemed capable of providing the specific unique spares required by Israel.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, potentially limiting cost-saving opportunities through competition.
Public Impact
Ensures operational readiness of critical defense equipment. Supports international security partnerships. Funds advanced manufacturing and supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competitive pricing.
- Long performance period could mask inefficiencies.
- Dependence on a single supplier poses supply chain risk.
Positive Signals
- Addresses a specific, critical need for unique spares.
- Supports a key international ally's defense capabilities.
- Contract awarded to a well-established defense contractor.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the provision of specialized spare parts essential for military equipment maintenance and operational readiness.
Small Business Impact
The contract was not set-aside for small businesses. Lockheed Martin Corporation, a large defense contractor, is the sole awardee, indicating no direct benefit to small businesses through this specific award.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. Given the sole-source nature and significant value, robust monitoring of performance, cost, and delivery is crucial to ensure accountability.
Related Government Programs
- Defense Spare Parts
- International Military Support
- Aerospace Components
Risk Flags
- Sole-source justification
- Long-term contract
- High dollar value
Tags
defense-spending, department-of-the-navy, lockheed-martin, sole-source, spare-parts, israel, foreign-military-sales, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $651.1 million to LOCKHEED MARTIN CORPORATION. ISRAEL UNIQUE SPARES
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $651.1 million.
What is the period of performance?
Start: 2017-03-31. End: 2023-01-30.
Analysis insight 1
The term 'unique spares' suggests highly specialized or proprietary components.
Analysis insight 2
The contract's duration from 2017 to 2023 indicates a long-term need for these parts.
Analysis insight 3
Further investigation into the justification for sole-source procurement is warranted.