DoD's $34.5M contract for Ammunition Manufacturing awarded to Lockheed Martin under full and open competition
Contract Overview
Contract Amount: $34,462,741 ($34.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2010-09-24
End Date: 2013-10-31
Contract Duration: 1,133 days
Daily Burn Rate: $30.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AMMUNITION (EXCEPT SMALL ARMS) MANUFACTURING
Place of Performance
Location: ARCHBALD, LACKAWANNA County, PENNSYLVANIA, 18403
Plain-Language Summary
Department of Defense obligated $34.5 million to LOCKHEED MARTIN CORP for work described as: AMMUNITION (EXCEPT SMALL ARMS) MANUFACTURING Key points: 1. Contract value of $34.5M for ammunition manufacturing. 2. Awarded to a single large business, Lockheed Martin. 3. Procured under full and open competition. 4. Sector is Manufacturing, specifically Ammunition.
Value Assessment
Rating: fair
The contract value of $34.5M for ammunition manufacturing appears moderate. Without specific unit cost data or benchmarks for similar ammunition types, a precise pricing assessment is difficult. However, the award amount itself doesn't immediately suggest overpayment or underpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value. The existence of competition suggests a degree of price discovery.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down prices.
Public Impact
Ensures supply of critical ammunition for defense purposes. Supports a major defense contractor, potentially impacting jobs. Ammunition availability is crucial for military readiness and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data for detailed value analysis.
- Award to a single large business, potentially limiting broader economic impact.
- No explicit mention of small business participation.
Positive Signals
- Procured through full and open competition, suggesting competitive pricing.
- Contract supports essential defense materiel.
- Clear contract duration and award date.
Sector Analysis
This contract falls within the manufacturing sector, specifically focusing on ammunition production. Defense manufacturing contracts can vary significantly in value and complexity, with benchmarks often tied to specific munition types and production volumes.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no information provided on whether small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Defense, specifically the Air Force. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed cost breakdown.
- No explicit small business participation noted.
- Potential for single-source dependency in future.
- Limited insight into specific ammunition type and its market price.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.5 million to LOCKHEED MARTIN CORP. AMMUNITION (EXCEPT SMALL ARMS) MANUFACTURING
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $34.5 million.
What is the period of performance?
Start: 2010-09-24. End: 2013-10-31.
What is the average per-unit cost for this type of ammunition compared to industry standards?
Without specific unit cost data or a detailed breakdown of the ammunition type, it's challenging to establish a precise per-unit cost benchmark. Industry standards for ammunition vary widely based on caliber, explosive fill, and manufacturing complexity. A thorough analysis would require access to the contract's detailed specifications and pricing structure to compare against publicly available or proprietary cost data for similar munitions.
What are the potential risks associated with relying on a single large contractor for this ammunition?
Relying on a single large contractor like Lockheed Martin for ammunition manufacturing can pose risks such as supply chain vulnerability if the contractor faces production issues, potential price increases due to limited competition in future renewals, and reduced flexibility in sourcing alternative suppliers. Dependence on one entity might also limit innovation or the adoption of more cost-effective manufacturing techniques.
How does this contract contribute to the overall readiness and effectiveness of the Air Force's ammunition supply chain?
This contract directly contributes to the Air Force's ammunition supply chain by ensuring the availability of essential munitions. Consistent and reliable supply is critical for maintaining operational readiness and enabling effective mission execution. The contract's duration and value suggest a significant contribution to meeting the Air Force's ammunition requirements for the specified period.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 459 KENNEDY DR, ARCHBALD, PA, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,462,741
Exercised Options: $34,462,741
Current Obligation: $34,462,741
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-24
Current End Date: 2013-10-31
Potential End Date: 2013-10-31 00:00:00
Last Modified: 2011-12-14
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