DoD awards $130M contract to Lockheed Martin for miscellaneous communication equipment
Contract Overview
Contract Amount: $12,961,870 ($13.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-09-29
End Date: 2010-10-04
Contract Duration: 1,466 days
Daily Burn Rate: $8.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200612!002336!5700!FA8103!OC-ALC/LID !FA810306C0311 !A!N! !N! ! !20060929!20060929!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000003000000!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !334511!E! !1! ! ! ! ! !99990909!B! ! !N!A!D!N!J!1!001!N!2A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! !Y! ! !0001! !
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to LOCKHEED MARTIN CORPORATION for work described as: 200612!002336!5700!FA8103!OC-ALC/LID !FA810306C0311 !A!N! !N! ! !20060929!20060929!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOG… Key points: 1. Contract awarded to a single, large defense contractor, indicating potential for limited competition. 2. The contract value of $130M is significant, requiring careful scrutiny of pricing and necessity. 3. The sector is IT/Defense, a high-spending area with ongoing technological advancements and risks. 4. The duration of the contract (over 4 years) suggests a long-term need, but also potential for cost overruns.
Value Assessment
Rating: fair
The contract value of $130M for miscellaneous communication equipment over four years appears substantial. Benchmarking against similar DoD contracts for specialized communication systems is necessary to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about potential overpayment and reduced value for taxpayer funds.
Public Impact
Impacts military communication capabilities, potentially affecting operational effectiveness. Supports a major defense contractor, contributing to jobs and the defense industrial base. Represents a significant allocation of federal funds towards defense-related technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns due to long duration
- Sole-source award limits price transparency
Positive Signals
- Supports critical defense infrastructure
- Awarded to a well-established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically related to IT and communication equipment. Defense spending in this area is substantial, driven by the need for advanced and reliable systems.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight of this sole-source contract is crucial to ensure the government receives fair value and that the equipment meets all specified requirements. Regular performance reviews and cost audits would be advisable.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of detailed technical specifications
- Long contract duration increases risk of obsolescence or cost creep
- Potential for price inflation without competitive pressure
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to LOCKHEED MARTIN CORPORATION. 200612!002336!5700!FA8103!OC-ALC/LID !FA810306C0311 !A!N! !N! ! !20060929!20060929!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000003000000!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !334511!E! !1! ! ! ! ! !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 $13.0 million.
What is the period of performance?
Start: 2006-09-29. End: 2010-10-04.
What specific communication capabilities does this contract address, and how critical are they to current military operations?
The contract is for 'MISCELLANEOUS COMMUNICATION EQUIPMENT' and 'OTHER AIRCRAFT EQUIPMENT'. While the exact nature is not detailed, such equipment is vital for command, control, and situational awareness in military operations. The criticality would depend on the specific systems being supported and their role in ongoing missions or strategic objectives.
Given the sole-source nature, what mechanisms are in place to ensure Lockheed Martin's pricing is reasonable and reflects fair market value?
For sole-source contracts, agencies typically rely on cost realism analyses, should-cost studies, and negotiation techniques to ensure fair pricing. The contracting officer would need to justify the price based on available cost data, historical pricing, or independent government cost estimates to ensure taxpayer funds are used efficiently.
How will the effectiveness and performance of this communication equipment be measured throughout the contract's duration?
Effectiveness is typically measured through performance metrics outlined in the contract's statement of work, such as reliability, uptime, and adherence to technical specifications. Acceptance testing upon delivery and ongoing operational feedback from end-users would also contribute to assessing performance and overall effectiveness.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1801 STATE ROUTE 17C, OWEGO, NY, 23
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-29
Current End Date: 2010-10-04
Potential End Date: 2010-10-04 00:00:00
Last Modified: 2010-04-27
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