DoD's $28.4M Lockheed Martin Contract for Navigation Systems: Full and Open Competition
Contract Overview
Contract Amount: $28,368,733 ($28.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2004-06-29
End Date: 2007-06-30
Contract Duration: 1,096 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $28.4 million to LOCKHEED MARTIN CORPORATION for work described as: Key points: 1. Contract awarded to Lockheed Martin Corporation for navigation systems. 2. Significant value of $28.4 million over a 3-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is IT/Defense, focusing on navigation and guidance systems.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. The total award amount is $28,368,733.09.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.
Public Impact
Impacts military navigation and guidance capabilities. Supports advanced technology development in aeronautical and nautical systems. Ensures operational readiness for Air Force missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type can incentivize contractor to increase costs.
- Lack of specific performance metrics makes it difficult to assess value.
- No clear indication of small business participation.
Positive Signals
- Full and open competition utilized.
- Contract supports critical defense systems.
- Long-term contract provides stability for development.
Sector Analysis
This contract falls within the IT/Defense sector, specifically manufacturing navigation, guidance, and control systems for aircraft and vessels. Spending in this area is crucial for national security and technological advancement.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). Further analysis would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring compliance with contract terms and performance.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Incentive Fee contract type.
- Lack of detailed performance metrics.
- No explicit small business participation noted.
- Potential for cost overruns without strong oversight.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.4 million to LOCKHEED MARTIN CORPORATION. See the official description on USAspending.
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 $28.4 million.
What is the period of performance?
Start: 2004-06-29. End: 2007-06-30.
What specific performance metrics were used to evaluate bids and ensure the best value was achieved under this full and open competition?
The provided data does not detail the specific performance metrics used during the evaluation of bids for this contract. While full and open competition suggests a competitive process, understanding the evaluation criteria is crucial for assessing whether the best value, considering both technical merit and cost, was truly achieved for the taxpayer.
Given the Cost Plus Incentive Fee structure, what mechanisms were in place to mitigate potential cost overruns and ensure efficient use of funds?
The Cost Plus Incentive Fee (CPIF) contract type, while offering flexibility, carries inherent risks of cost escalation. Without details on the incentive targets, cost ceilings, or specific oversight procedures implemented by the Air Force, it's difficult to assess the effectiveness of risk mitigation strategies employed to control expenditures and ensure taxpayer value.
How does the technology developed under this contract contribute to the overall effectiveness and modernization of the Air Force's navigation and guidance systems?
This contract supports the manufacturing of Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems and Instruments. The technology's contribution to effectiveness hinges on its ability to enhance precision, reliability, and operational capabilities of Air Force platforms, directly impacting mission success and potentially enabling new operational paradigms.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 WEST SAND LAKE ROAD, ORLANDO, FL, 32819
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-06-29
Current End Date: 2007-06-30
Potential End Date: 2007-06-30 00:00:00
Last Modified: 2016-11-02
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