DoD Awards $24.3M Contract for Vehicle Modification to Lockheed Martin, Raising Oversight Concerns
Contract Overview
Contract Amount: $24,328,412 ($24.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2004-06-16
End Date: 2006-06-14
Contract Duration: 728 days
Daily Burn Rate: $33.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200409!000524!5700!GD15 !OC-ALC/LIDAC !F3460197D0424 !A!N! !N!0147 ! !20040616!20041213!020066176!037900057!834951691!N!LOCKHEED MARTIN LOGISTICS MANA!555 LINCOLN DRIVE WEST !MARLTON !TX!08053!01108!095!13!ALBANY NAVAL AIR STA!DOUGHERTY !GEORGIA !+000000600000!N!N!000000000000!K023!MODIFICATION OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !000 !* !336413!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!Y!2!007!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! !Y!2100! !0001! !
Place of Performance
Location: ALBANY, DOUGHERTY County, GEORGIA, 31701
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $24.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200409!000524!5700!GD15 !OC-ALC/LIDAC !F3460197D0424 !A!N! !N!0147 ! !20040616!20041213!020066176!037900057!834951691!N!LOCKHEED MARTIN LOGISTICS MANA!555 LINCOLN DRIVE WEST !MARLTON !TX!08053!01108!095!13!ALBANY NAVAL AIR STA!DOUG… Key points: 1. The contract, valued at $24.3 million, was awarded to Lockheed Martin Corporation. 2. Competition was full and open, but the contract type (Time and Materials) may limit price control. 3. The duration of 728 days (2 years) for vehicle modification raises questions about efficiency. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating specialized defense needs.
Value Assessment
Rating: questionable
The contract value of $24.3 million for vehicle modification appears high given the 2-year duration. Benchmarking against similar modification contracts is needed to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the Time and Materials pricing structure could lead to cost overruns if not closely monitored.
Taxpayer Impact: While competition was present, the potential for cost escalation under a Time and Materials contract could lead to inefficient use of taxpayer funds.
Public Impact
Taxpayers may face higher costs due to the Time and Materials contract type, which lacks a fixed price ceiling. The modification of vehicles, trailers, and cycles suggests a need for updated or specialized equipment for military operations. The award to a major defense contractor like Lockheed Martin is common, but oversight is crucial to ensure value for money. The contract's duration of nearly two years warrants scrutiny to ensure timely and efficient completion of the modifications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Long contract duration for modifications
- Potential for cost overruns
Positive Signals
- Full and open competition
- Award to established contractor
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is a niche area within defense spending. Benchmarks for similar vehicle modification contracts are difficult to establish without more specific details on the scope of work.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication in the data provided whether small businesses were involved as subcontractors.
Oversight & Accountability
The contract's Time and Materials nature necessitates robust oversight from the Department of Defense to manage costs and ensure the work is performed efficiently and effectively. Regular reviews and audits would be essential.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Time and Materials contract type may lead to cost overruns.
- Long contract duration for modifications.
- Lack of detailed scope of work in provided data.
- Potential for inefficient resource utilization.
- Need for robust oversight to ensure value for money.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.3 million to LOCKHEED MARTIN CORPORATION. 200409!000524!5700!GD15 !OC-ALC/LIDAC !F3460197D0424 !A!N! !N!0147 ! !20040616!20041213!020066176!037900057!834951691!N!LOCKHEED MARTIN LOGISTICS MANA!555 LINCOLN DRIVE WEST !MARLTON !TX!08053!01108!095!13!ALBANY NAVAL AIR STA!DOUGHERTY !GEORGIA !+000000600000!N!N!000000000000!K023!MODIFICATION OF EQ/VEHICLES-TRAILERS-CYCLES !A4A!COMBAT VEHICLES !000 !* !336413!E! !5!B!M! !A! !999
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 Air Force).
What is the total obligated amount?
The obligated amount is $24.3 million.
What is the period of performance?
Start: 2004-06-16. End: 2006-06-14.
What is the specific scope of work for the vehicle, trailer, and cycle modifications, and how does it justify the $24.3 million cost over two years?
The provided data lacks specific details on the scope of work beyond 'MODIFICATION OF EQ/VEHICLES-TRAILERS-CYCLES'. A comprehensive breakdown of the modifications, including parts, labor hours, and complexity, is required to justify the $24.3 million expenditure over the 728-day period. Without this, it's difficult to assess the value for money.
What are the potential risks associated with using a Time and Materials contract for this type of modification, and how are they being mitigated?
The primary risk of a Time and Materials contract is the potential for cost escalation, as the government pays for actual labor and material costs, plus a fixed fee or percentage. Mitigation strategies should include strict labor hour tracking, pre-approved material costs, and regular performance reviews to ensure efficiency and prevent scope creep.
How will the effectiveness of these vehicle modifications be measured to ensure they meet the operational requirements of the Department of the Air Force?
Effectiveness will likely be measured through acceptance testing, performance trials, and operational feedback from end-users. Key performance indicators (KPIs) related to reliability, durability, and functional improvements should be established upfront. Post-delivery reviews and a warranty period will also contribute to assessing the long-term effectiveness of the modifications.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 7
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1600 E PIONEER PKWY, ARLINGTON, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3460197D0424
IDV Type: IDC
Timeline
Start Date: 2004-06-16
Current End Date: 2006-06-14
Potential End Date: 2006-06-14 00:00:00
Last Modified: 2009-10-01
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