DoD Awards $67M to Lockheed Martin for Falcon Enterprise Core Engineering Services Through 2026
Contract Overview
Contract Amount: $67,073,346 ($67.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2026-02-28
Contract Duration: 729 days
Daily Burn Rate: $92.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY24-28 FALCON ENTERPRISE CORE ENGINEERING SERVICES.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $67.1 million to LOCKHEED MARTIN CORPORATION for work described as: FY24-28 FALCON ENTERPRISE CORE ENGINEERING SERVICES. Key points: 1. Significant contract value of $67.07 million over two years. 2. Sole-source award to Lockheed Martin Corporation raises questions about competition. 3. Focus on core engineering services for the Air Force's Falcon Enterprise. 4. Potential for cost efficiencies or risks associated with a non-competed contract.
Value Assessment
Rating: questionable
The contract value of $67.07 million for two years of core engineering services appears substantial. Without competitive bids, it's difficult to assess if this pricing is optimal compared to market rates for similar specialized engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may prevent the government from obtaining the best possible value through a competitive process.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers if alternative providers could offer similar services at a lower price.
Public Impact
Supports critical Air Force engineering and maintenance operations. Ensures continued functionality of the Falcon Enterprise system. Potential impact on future technology development and sustainment. Highlights reliance on a single contractor for specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing justification.
- Potential for contractor lock-in.
Positive Signals
- Supports critical defense systems.
- Long-term engagement with a known provider.
Sector Analysis
This contract falls within the defense sector, specifically related to electronic and precision equipment repair and maintenance. Spending benchmarks in this area can vary widely based on system complexity and service scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is Lockheed Martin Corporation. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight will be crucial to ensure Lockheed Martin delivers the required engineering services effectively and that the government is receiving fair value, especially given the sole-source nature of the award.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on pricing
- Dependency on a single vendor
Tags
other-electronic-and-precision-equipment, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $67.1 million to LOCKHEED MARTIN CORPORATION. FY24-28 FALCON ENTERPRISE CORE ENGINEERING SERVICES.
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 $67.1 million.
What is the period of performance?
Start: 2024-03-01. End: 2026-02-28.
What is the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's presumed the Air Force determined Lockheed Martin was the only viable option for the Falcon Enterprise Core Engineering Services, potentially due to specialized knowledge or integration requirements.
What are the potential risks associated with a sole-source contract of this magnitude?
Sole-source contracts carry risks such as inflated pricing due to lack of competition, potential for complacency from the contractor, and limited opportunities for innovation from other market players. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future if performance or pricing becomes unsatisfactory.
How will the effectiveness of these engineering services be measured and ensured?
Effectiveness is typically measured through performance metrics outlined in the contract's statement of work, such as system uptime, response times for engineering support, and successful implementation of upgrades or repairs. Regular performance reviews, milestone tracking, and quality assurance checks by the Department of the Air Force are essential to ensure the contractor meets all requirements.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA823223R3011
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: $188,078,206
Exercised Options: $67,073,346
Current Obligation: $67,073,346
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA823222D0004
IDV Type: IDC
Timeline
Start Date: 2024-03-01
Current End Date: 2026-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2026-01-13
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