DoD Awards $569M Contract to Lockheed Martin for Govt. Furnished Equipment Services
Contract Overview
Contract Amount: $5,692,691 ($5.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-19
End Date: 2026-02-28
Contract Duration: 436 days
Daily Burn Rate: $13.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GOVERNMENT FURNISHED EQUIPMENT, PROPERTY, AND MATERIAL ASSESSMENT, DISPOSITION, AND STORAGE.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $5.7 million to LOCKHEED MARTIN CORPORATION for work described as: GOVERNMENT FURNISHED EQUIPMENT, PROPERTY, AND MATERIAL ASSESSMENT, DISPOSITION, AND STORAGE. Key points: 1. Significant contract value for essential equipment management services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on disposition and storage highlights potential for asset recovery or waste. 4. Aircraft manufacturing sector context suggests specialized needs for this service.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not carefully managed. Benchmarking is difficult without specific service details, but the value suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible price for these critical equipment management services.
Public Impact
Ensures proper management of government-owned equipment, preventing loss or misuse. Supports Air Force readiness by maintaining critical aircraft components. Potential for cost savings through efficient disposition and storage strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type can incentivize higher spending.
- Lack of detailed service scope makes value assessment difficult.
Positive Signals
- Essential service for maintaining military readiness.
- Experienced contractor with a long-standing relationship.
- Potential for efficient asset management and disposition.
Sector Analysis
This contract falls within the aircraft manufacturing sector, specifically supporting the Department of the Air Force. Spending in this area is critical for maintaining operational readiness and involves complex logistics for government-furnished equipment.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight will be crucial to ensure Lockheed Martin adheres to the terms of the Cost Plus Fixed Fee contract and manages government property effectively, preventing waste and ensuring accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type can incentivize overspending.
- Potential for inefficient asset management if oversight is weak.
- Limited transparency on specific service deliverables.
- Risk of underutilization or improper disposal of valuable assets.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.7 million to LOCKHEED MARTIN CORPORATION. GOVERNMENT FURNISHED EQUIPMENT, PROPERTY, AND MATERIAL ASSESSMENT, DISPOSITION, AND STORAGE.
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 $5.7 million.
What is the period of performance?
Start: 2024-12-19. End: 2026-02-28.
What is the specific breakdown of services included in this contract for assessment, disposition, and storage?
The provided data lacks specific details on the granular services encompassed by this contract. A comprehensive assessment would require a breakdown of activities such as inventory management, condition assessment protocols, disposal methods (e.g., sale, recycling, destruction), and storage facility requirements. Understanding these specifics is key to evaluating the true value and necessity of the $569 million award.
What justification was provided for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award is critical, especially for a contract of this magnitude. Without competition, it's imperative to understand the rationale, such as unique capabilities or urgent needs. Furthermore, the Department of Defense should have employed rigorous price negotiation techniques and potentially independent cost estimates to ensure the Cost Plus Fixed Fee structure results in fair and reasonable pricing for the taxpayer.
How will the effectiveness of the disposition and storage services be measured to ensure optimal asset utilization and cost-efficiency?
Measuring effectiveness requires clearly defined Key Performance Indicators (KPIs). For disposition, metrics could include the percentage of assets successfully sold or recycled, and the revenue generated. For storage, KPIs might focus on inventory accuracy, facility utilization rates, and the cost per unit stored. Regular performance reviews against these metrics will be essential to ensure the contractor is maximizing value and minimizing costs for the government.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: COST PLUS FIXED FEE (U)
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: $5,692,691
Exercised Options: $5,692,691
Current Obligation: $5,692,691
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: 2024-12-19
Current End Date: 2026-02-28
Potential End Date: 2030-12-31 00:00:00
Last Modified: 2025-12-03
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