DoD awards $46M to Lockheed Martin for Navigation Systems, a sole-source contract
Contract Overview
Contract Amount: $46,156,592 ($46.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2007-04-27
End Date: 2012-10-31
Contract Duration: 2,014 days
Daily Burn Rate: $22.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UCA
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $46.2 million to LOCKHEED MARTIN CORPORATION for work described as: UCA Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature raises questions about competition. 3. Contract duration spans over 5 years. 4. Focus on critical navigation and guidance systems.
Value Assessment
Rating: questionable
The contract value of $46.1M for navigation systems appears substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar systems from other manufacturers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these navigation systems.
Public Impact
Impacts military readiness through advanced navigation technology. Supports a major defense contractor and its supply chain. Highlights potential for non-competitive awards in specialized defense sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing.
- Long contract duration without re-competition.
Positive Signals
- Provides critical navigation systems for defense.
- Awarded to a reputable and experienced contractor.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of navigation and guidance systems. Spending in this area is critical for military operations, but often involves specialized technologies that can lead to sole-source procurements.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Further oversight would involve reviewing the justification for the sole-source award and ensuring performance met contractual requirements.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source procurement
- Potential for inflated pricing
- Lack of competitive pressure
- Long contract duration
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.2 million to LOCKHEED MARTIN CORPORATION. UCA
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.2 million.
What is the period of performance?
Start: 2007-04-27. End: 2012-10-31.
What was the specific justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of adequate competition within the required timeframe. For this specific contract, the justification would need to be documented by the Department of Defense, likely citing the specialized nature of the navigation systems and the contractor's sole ability to provide them.
How does the cost of these navigation systems compare to industry benchmarks for similar technology?
Without access to detailed cost breakdowns and comparative market data for specialized defense navigation systems, it is challenging to establish a precise benchmark. However, the absence of competition inherently raises concerns that the price may not be as favorable as it could be in a competitive environment.
What is the expected impact of these navigation systems on the operational effectiveness of the Department of Defense?
These navigation systems are crucial for Search, Detection, Guidance, and Aeronautical/Nautical operations. Their effectiveness directly contributes to the precision, safety, and success of military missions, enhancing situational awareness and enabling accurate targeting or maneuvering in complex environments.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT COMPETED
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: 5600 W SAND LAKE RD MP125, ORLANDO, FL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,211,154
Exercised Options: $46,156,592
Current Obligation: $46,156,592
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-04-27
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2014-09-18
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)