DoD Awards $15.8M for B-2 DMS Follow-On to Lockheed Martin, Raising Oversight Concerns
Contract Overview
Contract Amount: $15,796,811 ($15.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-30
End Date: 2026-12-05
Contract Duration: 949 days
Daily Burn Rate: $16.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-2 DMS FOLLOW-ON
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $15.8 million to LOCKHEED MARTIN CORPORATION for work described as: B-2 DMS FOLLOW-ON Key points: 1. Significant contract value for specialized aircraft parts. 2. Sole-source award to Lockheed Martin limits competitive pricing. 3. Potential for cost overruns due to lack of competition. 4. Defense sector spending on sustainment and upgrades.
Value Assessment
Rating: questionable
The contract value of $15.8 million for a follow-on order appears high given the lack of competitive bidding. Without market comparison, it's difficult to assess if this price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant award means taxpayers may not be receiving the best possible price for these critical B-2 components.
Public Impact
Impacts readiness and sustainment of the B-2 bomber fleet. Potential for increased defense spending without demonstrated value. Highlights reliance on single-source providers for critical defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
Positive Signals
- Supports critical defense platform
- Long-term sustainment effort
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on parts for the B-2 bomber. Spending in this area often involves high-value, specialized components with limited suppliers.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation and there is no indication of small business participation. The nature of sole-source, specialized defense contracts often excludes smaller businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost creep. Independent cost analysis would be beneficial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency on cost justification.
- High reliance on a single contractor.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.8 million to LOCKHEED MARTIN CORPORATION. B-2 DMS FOLLOW-ON
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 $15.8 million.
What is the period of performance?
Start: 2024-04-30. End: 2026-12-05.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. To ensure fair pricing, the agency should conduct a thorough cost analysis, potentially involving independent government cost estimators, and negotiate aggressively on profit margins and indirect rates. Transparency regarding the basis for sole-sourcing is crucial for accountability.
What is the risk of cost overruns or inefficiencies given the lack of competitive pressure on Lockheed Martin?
The primary risk is indeed cost overruns and inefficiencies due to the absence of competitive pressure. Without competing bids, Lockheed Martin has less incentive to optimize costs. This necessitates robust government oversight, including detailed contract surveillance, performance metrics, and rigorous auditing of costs to mitigate these risks and ensure value for taxpayer money.
How does this contract contribute to the overall effectiveness and sustainment of the B-2 bomber program?
This contract is crucial for the continued operational effectiveness and sustainment of the B-2 bomber fleet, likely addressing essential maintenance, upgrades, or spare parts. Ensuring timely and high-quality delivery of these components directly impacts the B-2's readiness and ability to perform its strategic mission, thus contributing significantly to national defense capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE ROUTE 17C, OWEGO, NY, 13827
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: $15,796,811
Exercised Options: $15,796,811
Current Obligation: $15,796,811
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA811924D0008
IDV Type: IDC
Timeline
Start Date: 2024-04-30
Current End Date: 2026-12-05
Potential End Date: 2026-12-05 00:00:00
Last Modified: 2025-11-06
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