DoD Awards $27.7M for Aircraft Manufacturing to Lockheed Martin, Sole-Source

Contract Overview

Contract Amount: $27,761,087 ($27.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2029-11-30

Contract Duration: 2,254 days

Daily Burn Rate: $12.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AF211 AVSLE

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to LOCKHEED MARTIN CORPORATION for work described as: AF211 AVSLE Key points: 1. Significant contract value of $27.7 million awarded. 2. Sole-source award to Lockheed Martin indicates limited competition. 3. Potential risk associated with single-bidder scenarios. 4. Spending falls within the Aircraft Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $27.7 million for aircraft manufacturing needs comparison against similar sole-source awards to Lockheed Martin. Without benchmark data, assessing pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This approach can lead to higher prices as there is no market pressure to reduce costs.

Taxpayer Impact: Taxpayer funds may be at risk of being overspent due to the lack of competitive bidding.

Public Impact

Taxpayers may be paying a premium for aircraft manufacturing components due to the absence of competition. The Department of Defense relies on Lockheed Martin for critical aircraft manufacturing needs. Long-term contract duration (2029) suggests ongoing reliance and potential for future sole-source awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for price inflation

Positive Signals

Award to established prime contractor
Long-term contract provides stability

Sector Analysis

This contract falls under the Aircraft Manufacturing sector, which is a critical component of the defense industrial base. Spending benchmarks for this sector are often high due to specialized requirements and R&D costs.

Small Business Impact

The contract data indicates no specific set-aside for small businesses. This sole-source award to a large prime contractor suggests limited direct opportunities for small businesses within this specific contract.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of Defense should conduct thorough price analyses and justifications for such awards.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price overruns
Limited transparency on justification
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to LOCKHEED MARTIN CORPORATION. AF211 AVSLE

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 $27.8 million.

What is the period of performance?

Start: 2023-09-29. End: 2029-11-30.

What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. To ensure fair pricing, the Department of Defense should perform a detailed cost analysis, review historical pricing, and potentially engage independent cost estimators. Transparency in the justification process is key to accountability.

What are the potential risks associated with relying solely on Lockheed Martin for this specific aircraft manufacturing requirement, and how are these risks being mitigated?

Risks include potential price escalation, reduced innovation, and supply chain vulnerabilities if Lockheed Martin faces production issues. Mitigation strategies could involve robust contract management, performance incentives, and contingency planning for alternative sourcing or support if feasible, though challenging in sole-source scenarios.

How does this contract contribute to the overall effectiveness and readiness of the Air Force's aircraft fleet, and what is the long-term strategic value?

This contract likely supports the sustainment, upgrade, or production of critical aircraft, directly impacting fleet readiness and operational effectiveness. The long-term value lies in ensuring the availability of necessary platforms and capabilities, but its true strategic contribution depends on the specific aircraft and its role in national defense.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: 1 LOCKHEED BLVD BLDG 10, FORT WORTH, TX, 76108

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: $27,761,087

Exercised Options: $27,761,087

Current Obligation: $27,761,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA820518D0001

IDV Type: IDC

Timeline