DoD awards $39.1M for Paveway II control groups to Lockheed Martin under full and open competition
Contract Overview
Contract Amount: $39,141,742 ($39.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2018-11-15
End Date: 2020-11-14
Contract Duration: 730 days
Daily Burn Rate: $53.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF PAVEWAY II COMPUTER CONTROL GROUPS AND AIR FOIL GROUPS.
Place of Performance
Location: ARCHBALD, LACKAWANNA County, PENNSYLVANIA, 18403
Plain-Language Summary
Department of Defense obligated $39.1 million to LOCKHEED MARTIN CORP for work described as: PROCUREMENT OF PAVEWAY II COMPUTER CONTROL GROUPS AND AIR FOIL GROUPS. Key points: 1. Contract awarded to a single, large business prime. 2. No small business participation noted. 3. Spending is within the Ammunition Manufacturing sector. 4. Contract type is Firm Fixed Price, indicating price certainty.
Value Assessment
Rating: fair
The contract value of $39.1M for Paveway II computer control and air foil groups appears to be a standard procurement for specialized defense components. Benchmarking against similar complex avionic systems is difficult without more granular data, but the firm fixed price suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the award to a single entity, Lockheed Martin, suggests they were the most advantageous bidder. The impact on price discovery is positive due to the initial competition.
Taxpayer Impact: Taxpayer funds are being used for essential defense components. The competitive award process aims to ensure reasonable pricing, but the total cost is significant.
Public Impact
Ensures continued operational readiness for Air Force platforms utilizing Paveway II systems. Supports a major defense contractor, contributing to the defense industrial base. Procurement of specialized munitions components.
Waste & Efficiency Indicators
Waste Risk Score: 54 / 10
Warning Flags
- No small business participation.
- Single award to a large prime.
Positive Signals
- Full and open competition.
- Firm fixed price contract.
Sector Analysis
This procurement falls within the Ammunition (except Small Arms) Manufacturing sector, specifically for components of precision-guided munitions. Spending in this sector is driven by defense readiness requirements and technological advancements in weaponry.
Small Business Impact
This contract does not appear to include any specific provisions or set-asides for small businesses. The prime contractor is a large business, and there is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard procurement oversight processes should be in place to ensure delivery and quality, given the firm fixed price nature of the award.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of small business participation.
- Potential for supply chain vulnerabilities.
- Reliance on a single prime contractor.
- Complexity of specialized component manufacturing.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.1 million to LOCKHEED MARTIN CORP. PROCUREMENT OF PAVEWAY II COMPUTER CONTROL GROUPS AND AIR FOIL GROUPS.
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 $39.1 million.
What is the period of performance?
Start: 2018-11-15. End: 2020-11-14.
What is the historical cost trend for Paveway II components, and how does this award compare to previous pricing?
Analyzing historical cost trends for Paveway II components is crucial for assessing value. Without access to prior contract data or cost breakdowns, it's challenging to definitively state if this $39.1M award represents an increase or decrease in pricing. However, the firm fixed price suggests the government sought to lock in costs at the time of award.
What are the specific performance risks associated with Lockheed Martin's ability to deliver these components on time and to specification?
Lockheed Martin is a major defense contractor with a proven track record, suggesting low performance risk. However, potential risks include supply chain disruptions for specialized materials, manufacturing complexities, and the inherent challenges of producing advanced munitions components. The firm fixed price contract incentivizes timely delivery but could strain margins if unforeseen issues arise.
How effectively does this procurement contribute to the Air Force's overall mission readiness and technological advantage?
This procurement directly supports the operational readiness of Air Force platforms equipped with Paveway II systems, which are crucial for precision strike capabilities. By ensuring the availability of these critical components, the contract enhances the Air Force's ability to execute its missions effectively and maintain a technological edge in air-to-ground warfare.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA821311R3011
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 459 KENNEDY DR, ARCHBALD, PA, 18403
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,141,742
Exercised Options: $39,141,742
Current Obligation: $39,141,742
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821311D0007
IDV Type: IDC
Timeline
Start Date: 2018-11-15
Current End Date: 2020-11-14
Potential End Date: 2020-11-14 00:00:00
Last Modified: 2020-03-26
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