DoD Awards $50.6M for Aircraft Manufacturing to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $50,657,762 ($50.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-03
End Date: 2033-02-27
Contract Duration: 2,826 days
Daily Burn Rate: $17.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AF211R AVSLE
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $50.7 million to LOCKHEED MARTIN CORPORATION for work described as: AF211R AVSLE Key points: 1. Significant contract value of $50.6 million. 2. Sole-source award to Lockheed Martin Corporation. 3. High risk due to lack of competition. 4. Sector: Defense (Aircraft Manufacturing).
Value Assessment
Rating: questionable
The contract value is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal or reflects market rates for aircraft manufacturing services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a better price may have been achievable through a competitive process.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation if market alternatives are not explored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Specific aircraft manufacturing need
- Established contractor relationship
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, which could be an opportunity missed for their participation.
Oversight & Accountability
The sole-source nature of this award warrants close scrutiny by oversight bodies to ensure the justification is sound and taxpayer dollars are being used responsibly.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment by taxpayers.
- Limited transparency into procurement process.
- No small business participation evident.
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 $50.7 million to LOCKHEED MARTIN CORPORATION. AF211R 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 $50.7 million.
What is the period of performance?
Start: 2025-06-03. End: 2033-02-27.
What is the specific justification for awarding this contract on a sole-source basis to Lockheed Martin Corporation?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or situations where only one vendor can meet the requirements. Without further details on the specific aircraft or program, it's impossible to ascertain the precise reason. However, such awards necessitate rigorous documentation and approval processes to ensure they are truly warranted and not simply a matter of convenience.
What are the potential risks associated with a sole-source contract of this magnitude in aircraft manufacturing?
The primary risk is inflated pricing due to the absence of competitive pressure. Other risks include a lack of innovation from the sole provider, potential complacency, and a reduced incentive to improve efficiency. Furthermore, if the contractor faces production issues or cost overruns, taxpayers bear the brunt without alternative options readily available.
How can the effectiveness of this contract be measured given the lack of competition?
Effectiveness can be measured against pre-defined performance metrics, delivery schedules, and quality standards outlined in the contract. While price competition is absent, adherence to these technical and operational benchmarks is crucial. Post-award analysis comparing outcomes to similar, potentially competitive, contracts (if any exist) could also provide some insight into value for money.
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: $90,833,172
Exercised Options: $50,657,762
Current Obligation: $50,657,762
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: 2025-06-03
Current End Date: 2033-02-27
Potential End Date: 2034-07-31 00:00:00
Last Modified: 2025-11-26
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