DoD Awards $31.5M Contract to Lockheed Martin for Aircraft Parts, Limited Competition
Contract Overview
Contract Amount: $31,541,977 ($31.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-01-03
End Date: 2012-07-20
Contract Duration: 2,390 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200605!000007!5700!FA8206!OO-ALC/LGKAP !FA821206C0010 !A!N! !N! !PM0001!20060103!20070315!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000001619500!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !3! ! !C! ! !99990909!B! ! !N!Z!D!N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! !Y! ! !0001! !
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76101
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $31.5 million to LOCKHEED MARTIN CORPORATION for work described as: 200605!000007!5700!FA8206!OO-ALC/LGKAP !FA821206C0010 !A!N! !N! !PM0001!20060103!20070315!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARR… Key points: 1. Contract awarded to a single, large defense contractor, raising questions about competition. 2. Significant contract value for aircraft parts suggests critical operational needs. 3. Fixed price contract type aims to control costs, but initial price may be high. 4. Geographic concentration in Texas for a major defense supplier. 5. Long contract duration of nearly 20 years could indicate a long-term program.
Value Assessment
Rating: questionable
The contract value of $31.5M for 'Other Aircraft Parts and Auxiliary Equipment' needs benchmarking against similar procurements. Without comparable data, assessing if this price is reasonable is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source procurement. This significantly impacts price discovery, as there's no competitive pressure to drive down costs.
Taxpayer Impact: Limited competition can lead to higher prices, potentially increasing the taxpayer burden for essential aircraft parts.
Public Impact
Impacts readiness and operational capability of Air Force aircraft. Supports jobs in the aerospace manufacturing sector, particularly in Texas. Potential for cost overruns if pricing is not aggressively managed due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price transparency
- Long-term contract duration
- Potential for cost escalation
Positive Signals
- Firm fixed price contract type
- Supports critical defense needs
- Established contractor with proven capabilities
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts. Spending benchmarks in this area are highly variable, depending on the specific aircraft and parts required. Large, sole-source contracts are not uncommon for specialized defense components.
Small Business Impact
This contract was awarded to Lockheed Martin, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this data, suggesting a direct award with limited small business participation.
Oversight & Accountability
The limited competition aspect warrants close oversight to ensure fair pricing and prevent potential cost overruns. The Department of Defense should monitor contract performance and expenditures closely.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Long-term contract risk
- Lack of transparency in pricing justification
- No clear small business participation
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.5 million to LOCKHEED MARTIN CORPORATION. 200605!000007!5700!FA8206!OO-ALC/LGKAP !FA821206C0010 !A!N! !N! !PM0001!20060103!20070315!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000001619500!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !3! ! !C! ! !999
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 $31.5 million.
What is the period of performance?
Start: 2006-01-03. End: 2012-07-20.
What is the justification for limiting competition on this contract, and what steps are being taken to ensure fair pricing?
The justification for limited competition is not provided in the data. To ensure fair pricing, the DoD should conduct thorough market research and potentially negotiate pricing based on historical data or independent cost estimates. Robust oversight is crucial to identify any potential inefficiencies or overcharges.
How does the long contract duration of nearly 20 years impact the risk of obsolescence or the need for future upgrades?
A long contract duration increases the risk of parts becoming obsolete due to technological advancements or changes in aircraft configurations. It also necessitates careful planning for potential upgrades or replacements. The contract should include provisions for managing obsolescence and incorporating necessary modifications to maintain operational effectiveness.
What is the potential impact on overall defense spending if similar limited-competition contracts become the norm for aircraft parts?
If limited-competition contracts become the norm, it could lead to significantly higher defense spending due to reduced price competition. This could strain the defense budget and necessitate difficult trade-offs in other areas. Proactive measures to foster competition and ensure cost-effectiveness are vital to mitigate this risk.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: LOCKHEED BLVD, FORT WORTH, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,541,977
Exercised Options: $31,541,977
Current Obligation: $31,541,977
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-01-03
Current End Date: 2012-07-20
Potential End Date: 2012-07-20 00:00:00
Last Modified: 2012-06-18
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