DoD Awards $66M Antenna Contract to Lockheed Martin, Lacking Competition

Contract Overview

Contract Amount: $66,088,363 ($66.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-03-14

End Date: 2027-01-17

Contract Duration: 2,866 days

Daily Burn Rate: $23.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ANTENNA

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $66.1 million to LOCKHEED MARTIN CORPORATION for work described as: ANTENNA Key points: 1. Significant award value of $66 million for antenna systems. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Aircraft manufacturing sector context for specialized components.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the fairness of the fixed fee is difficult.

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 may result in higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these antenna systems.

Public Impact

Taxpayers may be overpaying for critical antenna components. Limited visibility into the justification for a sole-source award. Potential impact on the defense supply chain if competition is stifled.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Award to established defense contractor
Long-term contract duration

Sector Analysis

This contract falls within the aircraft manufacturing sector, specifically for specialized antenna components. Spending in this area is often driven by unique technological requirements and national security needs, but competition is generally expected for mature technologies.

Small Business Impact

The data indicates this contract was not awarded to small businesses. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the government received fair value and that competition was appropriately considered or justified.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost-plus contract type
Potential for inflated pricing
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.1 million to LOCKHEED MARTIN CORPORATION. ANTENNA

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 $66.1 million.

What is the period of performance?

Start: 2019-03-14. End: 2027-01-17.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Without specific documentation, it's difficult to ascertain the precise reason, but it suggests that Lockheed Martin was deemed the only viable source for these particular antenna systems at the time of award.

How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this antenna contract?

Cost Plus Fixed Fee (CPFF) contracts share cost risk between the government and the contractor. While the contractor's profit is fixed, they are incentivized to control costs to maximize their return. However, if the initial cost estimates are inaccurate or unforeseen issues arise, the government may bear the brunt of increased expenses, making robust oversight crucial.

What is the potential long-term effectiveness of relying on a sole-source provider for critical antenna systems?

Relying on a sole-source provider can ensure continuity and specialized expertise but may stifle innovation and lead to higher prices over time. Long-term effectiveness depends on the contractor's performance, the evolving technological landscape, and whether the government actively seeks alternative solutions or encourages competition in future procurements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1 LOCKHEED BLVD, 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: $67,520,701

Exercised Options: $67,520,701

Current Obligation: $66,088,363

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $104,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA861113D2850

IDV Type: IDC

Timeline