DoD's $10.2M PEACE KRYPTON Aircraft FOS II Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $10,208,624 ($10.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2007-04-01
End Date: 2014-03-31
Contract Duration: 2,556 days
Daily Burn Rate: $4.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PEACE KRYPTON AIRCRAFT FOS II
Place of Performance
Location: LITTLETON, JEFFERSON County, COLORADO, 80127
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $10.2 million to LOCKHEED MARTIN CORPORATION for work described as: PEACE KRYPTON AIRCRAFT FOS II Key points: 1. Significant contract value of $10.2 million for aircraft parts. 2. Sole-source award to Lockheed Martin suggests limited competition. 3. Long contract duration (2007-2014) may indicate ongoing needs. 4. Sector: Defense, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $10.2 million is substantial for aircraft parts. Without specific unit cost data or benchmarks for similar 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' contracts, it's difficult to definitively assess pricing. The lack of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method can lead to higher prices as there is no market pressure to drive costs down. The specific justification for the sole-source award is not provided.
Taxpayer Impact: The sole-source nature of this award raises concerns about taxpayer value, as competitive processes are generally expected to yield better pricing.
Public Impact
Impacts the Department of Defense's aviation readiness and maintenance capabilities. Supports Lockheed Martin's operations and potentially its supply chain. Limited public visibility due to sole-source award and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration without clear competitive re-evaluation.
- Lack of transparency on specific parts and services procured.
Positive Signals
- Supports critical defense needs for aircraft maintenance.
- Award to a major defense contractor ensures established capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically related to the manufacturing of aircraft parts and auxiliary equipment. Spending in this area is crucial for maintaining military aviation fleets, but often involves complex supply chains and specialized components.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award, suggesting limited direct impact on the small business sector for this particular contract.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The effectiveness of oversight depends on the rigor of contract monitoring, performance reviews, and adherence to terms, especially given the sole-source nature.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award potentially inflates costs.
- Lack of competitive bidding limits price discovery.
- Long contract duration may not reflect current market prices.
- Limited transparency on specific parts and services procured.
- No clear indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.2 million to LOCKHEED MARTIN CORPORATION. PEACE KRYPTON AIRCRAFT FOS II
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 $10.2 million.
What is the period of performance?
Start: 2007-04-01. End: 2014-03-31.
What was the specific justification for awarding this contract on a sole-source basis to Lockheed Martin?
The justification for a sole-source award is critical for understanding why competition was bypassed. Common reasons include unique capabilities, urgent needs, or proprietary technology. Without this information, it's difficult to assess if the government received the best possible value or if alternative solutions were overlooked.
How does the unit cost of the 'Other Aircraft Parts' compare to industry benchmarks for similar components?
Benchmarking unit costs is essential for evaluating contract value. If the per-unit cost for these aircraft parts significantly exceeds established industry averages for comparable items, it would indicate potential overpricing and inefficient use of taxpayer funds. This comparison is crucial for assessing the financial effectiveness of the award.
What performance metrics were established for this contract, and how were they measured to ensure effectiveness?
Effectiveness is determined by whether the procured parts met the required specifications and contributed to the intended operational readiness of the aircraft. Performance metrics, delivery schedules, and quality control measures are key indicators. Lack of transparency on these aspects makes it challenging to gauge the true effectiveness of the spending.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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
Address: 1300 S LITCHFIELD RD STE 9, GOODYEAR, AZ, 85338
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,208,624
Exercised Options: $10,208,624
Current Obligation: $10,208,624
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-01
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 00:00:00
Last Modified: 2023-08-24
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