DoD Awards $15.3M to Lockheed Martin for Electronic Warfare Components Amidst DMSMS Concerns
Contract Overview
Contract Amount: $15,270,088 ($15.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-07-25
End Date: 2028-07-24
Contract Duration: 1,460 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DIMINISHING MANUFACTURING SOURCES MATERIAL SHORTAGES (DMSMS) FOR THE ELECTRONIC WARFARE (EW) CUSTOM COMPONENTS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $15.3 million to LOCKHEED MARTIN CORPORATION for work described as: DIMINISHING MANUFACTURING SOURCES MATERIAL SHORTAGES (DMSMS) FOR THE ELECTRONIC WARFARE (EW) CUSTOM COMPONENTS Key points: 1. Significant award addresses critical Diminishing Manufacturing Sources (DMSMS) for Electronic Warfare (EW) components. 2. Sole-source award to Lockheed Martin raises questions about competition and potential price discovery. 3. Long contract duration (4 years) and firm fixed price suggest potential for cost overruns if not managed. 4. Focus on EW components highlights strategic importance and potential national security implications.
Value Assessment
Rating: questionable
The award value of $15.3M for custom EW components is difficult to benchmark without specific technical details. However, the lack of competition suggests potential for higher-than-market pricing.
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 result in less favorable terms for the government.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these critical EW components.
Public Impact
Ensures continued availability of essential components for Air Force electronic warfare systems. Addresses potential supply chain vulnerabilities related to aging or obsolete electronic parts. Supports ongoing defense readiness and technological superiority in the EW domain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- DMSMS issues can lead to increased costs and delays.
- Long contract duration may not reflect current market conditions.
Positive Signals
- Addresses critical national security need for EW components.
- Secures supply chain for vital defense systems.
Sector Analysis
The defense sector, particularly in areas like electronic warfare, often involves specialized, high-value components. Awards can be substantial, but competition is frequently limited due to proprietary technology or unique requirements.
Small Business Impact
This award does not appear to involve small businesses directly, as it is a sole-source contract with a large prime contractor. Opportunities for small businesses would likely be through subcontracting, which is not detailed here.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery. The Department of the Air Force should monitor performance and costs diligently.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns due to DMSMS
- Long contract duration
- Reliance on sole-source provider
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to LOCKHEED MARTIN CORPORATION. DIMINISHING MANUFACTURING SOURCES MATERIAL SHORTAGES (DMSMS) FOR THE ELECTRONIC WARFARE (EW) CUSTOM COMPONENTS
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 $15.3 million.
What is the period of performance?
Start: 2024-07-25. End: 2028-07-24.
What is the government's strategy to mitigate potential cost increases associated with this sole-source award for DMSMS components?
The government's strategy likely involves rigorous negotiation of the firm fixed price, detailed cost analysis of Lockheed Martin's proposal, and potentially establishing clear performance metrics and incentives. Regular reviews and audits will be crucial to ensure value for money and prevent cost creep, especially given the DMSMS challenges which inherently add complexity and risk.
How is the risk of obsolescence and diminishing manufacturing sources being managed throughout the 4-year contract period?
Managing DMSMS risk involves proactive engagement with the contractor to identify potential obsolescence early. This includes requiring Lockheed Martin to provide detailed roadmaps for component sourcing, explore alternative materials or designs, and potentially invest in re-tooling or new manufacturing processes. The government may also conduct independent market research to identify alternative suppliers or technologies.
What is the projected impact of these EW components on the operational effectiveness of the Air Force's electronic warfare capabilities?
These components are critical for maintaining and enhancing the Air Force's electronic warfare capabilities, which are essential for mission success in contested environments. Ensuring their availability through this contract directly supports the operational readiness and technological superiority of platforms reliant on advanced EW systems, thereby bolstering national security.
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: $15,270,088
Exercised Options: $15,270,088
Current Obligation: $15,270,088
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
Start Date: 2024-07-25
Current End Date: 2028-07-24
Potential End Date: 2028-07-25 00:00:00
Last Modified: 2025-10-21
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