DoD's $41M Lockheed Martin Contract for Flight Test Support Lacks Competition
Contract Overview
Contract Amount: $41,042,949 ($41.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-11-01
End Date: 2025-03-31
Contract Duration: 1,246 days
Daily Burn Rate: $32.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FY22-25 BASELINE FLIGHT TEST SUPPORT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $41.0 million to LOCKHEED MARTIN CORPORATION for work described as: FY22-25 BASELINE FLIGHT TEST SUPPORT Key points: 1. Contract awarded to a single, large business prime. 2. No small business participation noted. 3. Significant duration of over 3 years. 4. Cost-plus contract type may incentivize spending.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
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 competitive pressures are absent.
Taxpayer Impact: The lack of competition for this significant contract value raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Limited opportunities for small businesses to participate in this significant defense contract. The long duration could indicate a critical, ongoing need, but also a missed opportunity for market-based cost reductions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- No small business participation
- Long contract duration
Positive Signals
- Supports critical flight test operations
Sector Analysis
This contract falls under Engineering Services, a broad category often supporting complex defense programs. Benchmarks for similar sole-source, long-duration flight test support contracts are highly variable and depend on specific technical requirements.
Small Business Impact
There is no indication of small business participation in this contract. The prime contractor is a large business, and the sole-source nature likely precluded subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Department of the Air Force should justify the lack of competition.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- No small business participation
- Long contract duration
Tags
engineering-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.0 million to LOCKHEED MARTIN CORPORATION. FY22-25 BASELINE FLIGHT TEST SUPPORT
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 $41.0 million.
What is the period of performance?
Start: 2021-11-01. End: 2025-03-31.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without specific documentation, it's difficult to assess the fairness and reasonableness of pricing. Agencies should provide detailed cost analyses and market research to support sole-source decisions, especially for contracts of this magnitude and duration.
What are the specific risks associated with a Cost Plus Fixed Fee contract for flight test support, and how are they being mitigated?
CPFF contracts carry risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include robust government oversight, detailed cost monitoring, clear performance metrics, and defined ceilings. For flight test support, risks include unforeseen technical challenges and scope creep, requiring agile management and clear communication.
How does the lack of competition impact the long-term cost-effectiveness of this flight test support service for the Air Force?
The lack of competition inherently removes the downward pressure on price that a competitive bidding process provides. This can lead to higher costs over the contract's lifespan. While the contractor may possess unique expertise, without competitive validation, it's challenging to ascertain if taxpayers are receiving the best value compared to what could be achieved in a more open market.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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
Financial Breakdown
Contract Ceiling: $53,231,578
Exercised Options: $51,905,582
Current Obligation: $41,042,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F4262001D0058
IDV Type: IDC
Timeline
Start Date: 2021-11-01
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2025-09-29
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