DoD Awards $62.6M Follow-On Contract for B-2 DMS to Lockheed Martin
Contract Overview
Contract Amount: $62,650,000 ($62.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2027-11-30
Contract Duration: 1,159 days
Daily Burn Rate: $54.1K/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 $62.6 million to LOCKHEED MARTIN CORPORATION for work described as: B-2 DMS FOLLOW-ON Key points: 1. Significant contract value of $62.6 million awarded. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for taxpayer overpayment due to lack of competition. 4. Contract supports critical B-2 bomber sustainment.
Value Assessment
Rating: questionable
The contract value of $62.6 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair and reasonable compared to potential market alternatives.
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 may lead to higher costs for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these B-2 DMS sustainment services.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports critical defense capabilities for national security. Potential for increased costs impacting the defense budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Supports critical defense asset
- Long-term sustainment
Sector Analysis
This contract falls under the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is crucial for maintaining military readiness.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Air Force is responsible for managing this award.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price negotiation.
- Risk of vendor lock-in.
- No small business participation noted.
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 $62.6 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $62.6 million.
What is the period of performance?
Start: 2024-09-27. End: 2027-11-30.
What is the justification for the sole-source award, 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 incumbent contractor. The Department of Defense should conduct a thorough price analysis, potentially including cost realism assessments and benchmarking against similar services, to ensure fair and reasonable pricing despite the lack of competition.
What is the risk of technological obsolescence or vendor lock-in with this sole-source contract?
Sole-source contracts can increase the risk of vendor lock-in, making it difficult and costly to switch providers in the future. There's also a risk of technological stagnation if the contractor faces no competitive pressure to innovate or upgrade systems. Regular performance reviews and market research are essential to mitigate these risks.
How does this contract contribute to the overall effectiveness and readiness of the B-2 bomber program?
This follow-on contract is vital for the continued operational effectiveness and readiness of the B-2 bomber fleet. It ensures the availability of necessary parts and support for the aircraft's complex systems, directly impacting the Air Force's ability to execute its strategic missions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $62,650,000
Exercised Options: $62,650,000
Current Obligation: $62,650,000
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: 2024-09-27
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-11-06
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