DoD Awards $19.7M for Sensor Enhancement Kits to Lockheed Martin, Raising Competition Concerns
Contract Overview
Contract Amount: $19,724,470 ($19.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-10-22
End Date: 2023-10-31
Contract Duration: 739 days
Daily Burn Rate: $26.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SENSOR ENHANCEMENT GROUP A KITS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $19.7 million to LOCKHEED MARTIN CORPORATION for work described as: SENSOR ENHANCEMENT GROUP A KITS Key points: 1. Significant award value of $19.7 million for specialized sensor kits. 2. Sole-source award to Lockheed Martin suggests limited competition. 3. Potential for overpayment due to lack of competitive bidding. 4. Defense sector spending on advanced equipment.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts. Without competitive benchmarking, it's difficult to assess if the $19.7 million price is reasonable for the sensor enhancement kits.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This significantly limits price discovery and may result in a higher price for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these sensor enhancement kits.
Public Impact
Military readiness may be impacted by the availability and cost of these sensor kits. Taxpayer funds are being allocated to a sole-source defense contract. The specific use and impact of these sensor enhancements on military operations are not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on pricing
Positive Signals
- Addresses a specific defense need
- Awarded to a known defense contractor
Sector Analysis
This contract falls within the defense sector, specifically related to aircraft support and sensor technology. Spending in this area is common for maintaining and upgrading military assets, but competitive pricing is crucial.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, awarded this contract. Oversight would focus on ensuring the contractor meets the terms and conditions of the cost-plus fixed fee agreement.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can lead to higher costs without strong oversight.
- Lack of detailed justification for sole-source award.
- Potential for taxpayer overpayment due to non-competitive nature.
Tags
other-support-activities-for-air-transpo, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.7 million to LOCKHEED MARTIN CORPORATION. SENSOR ENHANCEMENT GROUP A KITS
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 $19.7 million.
What is the period of performance?
Start: 2021-10-22. End: 2023-10-31.
What is the specific technical capability provided by these sensor enhancement kits, and how critical is it to current defense operations?
The provided data does not specify the exact technical capabilities of the 'SENSOR ENHANCEMENT GROUP A KITS'. However, their procurement by the Department of Defense suggests they are critical for enhancing sensor performance on military platforms, likely contributing to intelligence, surveillance, reconnaissance, or targeting functions essential for operational effectiveness.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent and compelling needs. Without this justification, the lack of competition raises concerns about potential price inflation.
How does the 'Cost Plus Fixed Fee' contract structure impact the government's ability to control costs for these sensor enhancement kits?
The 'Cost Plus Fixed Fee' (CPFF) structure means the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost can fluctuate based on actual expenses. This structure can incentivize cost overruns if not rigorously monitored, making effective oversight critical to controlling the overall expenditure.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
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 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: $19,724,470
Exercised Options: $19,724,470
Current Obligation: $19,724,470
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861119D2123
IDV Type: IDC
Timeline
Start Date: 2021-10-22
Current End Date: 2023-10-31
Potential End Date: 2023-10-31 00:00:00
Last Modified: 2025-10-14
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