DoD Awards $19.4M Contract to Lockheed Martin for Communication Equipment Modification

Contract Overview

Contract Amount: $19,434,268 ($19.4M)

Contractor: Lockheed Martin Services, LLC

Awarding Agency: Department of Defense

Start Date: 2004-09-24

End Date: 2011-06-13

Contract Duration: 2,453 days

Daily Burn Rate: $7.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200412!000655!5700!GU72 !ASC/RWKR !FA862004C4016 !A!N! !N! ! !20040924!20060830!094736241!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !107 FREDERICK ST !GREENVILLE !SC!29607!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000008679885!N!N!000011376325!K058!MODIFICATION OF EQ/COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !336413!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!N!J!1!001!N!6A!Z!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29607

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to LOCKHEED MARTIN SERVICES, LLC for work described as: 200412!000655!5700!GU72 !ASC/RWKR !FA862004C4016 !A!N! !N! ! !20040924!20060830!094736241!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !107 FREDERICK ST !GREENVILLE !SC!29607!30850!045!45!GREENVILLE !GREE… Key points: 1. The contract, valued at $19.4 million, was awarded to Lockheed Martin Services, Inc. 2. This award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 3. The contract was not competed, raising potential concerns about price discovery. 4. The spending is categorized under the Department of Defense, specifically the Air Force.

Value Assessment

Rating: fair

The contract value of $19.4 million for modification of communication equipment appears significant. Without specific benchmarks for similar modifications, it's difficult to definitively assess its pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to a less favorable price for the government, potentially increasing taxpayer burden.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The sole-source nature of the award warrants scrutiny to ensure fair pricing and value. This spending contributes to the Department of Defense's communication equipment capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Potential for overpayment due to sole-source award

Positive Signals

  • Supports critical defense communication infrastructure
  • Award to established defense contractor

Sector Analysis

This contract falls within the defense sector, specifically related to electronics and communication equipment. Spending in this area is crucial for national security, but competitive procurement is vital to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award, as it was awarded directly to Lockheed Martin Services, Inc.

Oversight & Accountability

The sole-source nature of this award suggests a need for robust oversight to ensure the government is receiving fair value for the funds expended.

Related Government Programs

  • Other Aircraft Parts and Auxiliary Equipment Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award
  • Lack of transparency in price justification
  • Potential for inflated costs
  • Limited opportunity for innovation from other vendors

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, sc, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to LOCKHEED MARTIN SERVICES, LLC. 200412!000655!5700!GU72 !ASC/RWKR !FA862004C4016 !A!N! !N! ! !20040924!20060830!094736241!805258373!834951691!N!LOCKHEED MARTIN SERVICES INC !107 FREDERICK ST !GREENVILLE !SC!29607!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000008679885!N!N!000011376325!K058!MODIFICATION OF EQ/COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !336413!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.

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 $19.4 million.

What is the period of performance?

Start: 2004-09-24. End: 2011-06-13.

What specific technical requirements necessitated a sole-source award for this communication equipment modification?

The data does not provide specific technical details. A sole-source award typically implies unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Further investigation into the justification for not competing the contract would be necessary to understand the technical rationale.

How does the $19.4 million cost compare to similar communication equipment modification contracts awarded competitively?

Without access to a database of comparable competitively awarded contracts for similar modifications, a direct cost comparison is not possible. The lack of competition in this award makes it difficult to benchmark pricing effectively and assess if the government received a fair and reasonable price.

What is the long-term strategic value of this communication equipment modification for the Air Force?

The modification likely enhances the operational effectiveness, reliability, or security of critical communication systems for the Air Force. The long-term value depends on the specific upgrades and their contribution to mission readiness and technological superiority in a constantly evolving threat landscape.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENTMODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 107 FREDERICK ST, GREENVILLE, SC, 04

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline

Start Date: 2004-09-24

Current End Date: 2011-06-13

Potential End Date: 2011-06-13 00:00:00

Last Modified: 2010-06-15

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