DoD's $91.6M C-5 COMM NAV Upgrade Program Lacks Competition, Raises Cost Concerns
Contract Overview
Contract Amount: $91,561,093 ($91.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2016-09-30
End Date: 2020-12-31
Contract Duration: 1,553 days
Daily Burn Rate: $59.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-5 COMM NAV SURVEILLANCE / AIR TRAFFIC MANAGEMENT UPGRADE DEVELOPMENT PROGRAM
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $91.6 million to LOCKHEED MARTIN CORP for work described as: C-5 COMM NAV SURVEILLANCE / AIR TRAFFIC MANAGEMENT UPGRADE DEVELOPMENT PROGRAM Key points: 1. Significant investment in critical aircraft upgrade. 2. Sole-source award to Lockheed Martin suggests limited market options. 3. Cost-plus contract type may incentivize higher spending. 4. Program duration of over 3 years indicates complex development.
Value Assessment
Rating: questionable
The $91.6 million contract value for an aircraft upgrade program is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar upgrades or assess if the government received the best possible value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, potentially resulting in a less efficient use of resources.
Public Impact
Ensures continued operational capability for the C-5 fleet. Modernizes critical communication and navigation systems. Supports national defense readiness and air traffic management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
Positive Signals
- Essential upgrade for a key military asset
- Supports critical defense infrastructure
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is often driven by modernization needs and national security requirements.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this sole-source contract. Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The 'GA' status suggests the program may be under scrutiny or review by the Government Accountability Office, indicating potential oversight mechanisms are in place.
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 limits competitive pricing.
- Cost-plus contract type increases risk of overspending.
- Lack of transparency on justification for sole-source.
- Potential for schedule delays given program duration.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.6 million to LOCKHEED MARTIN CORP. C-5 COMM NAV SURVEILLANCE / AIR TRAFFIC MANAGEMENT UPGRADE DEVELOPMENT PROGRAM
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $91.6 million.
What is the period of performance?
Start: 2016-09-30. End: 2020-12-31.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the inability of other firms to meet specific requirements. Without detailed documentation, it's unclear if alternatives were thoroughly explored or if the sole-source decision was based on a genuine lack of viable competition for this specific C-5 upgrade.
How will the cost-plus fixed fee structure be managed to prevent cost overruns?
Cost-plus fixed fee contracts carry inherent risks of cost escalation. Effective management requires stringent oversight, detailed cost tracking, and clear performance metrics. The Air Force must actively monitor expenditures and contractor performance to ensure the final cost remains within reasonable bounds and aligns with the program's objectives.
What are the long-term implications of upgrading the C-5's communication and navigation systems for operational effectiveness?
Upgrading these systems is crucial for maintaining the C-5's relevance and effectiveness in modern airspace and operational environments. Enhanced communication and navigation capabilities improve safety, efficiency, and interoperability with allied forces, ensuring the aircraft can continue to fulfill its strategic airlift mission reliably.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
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: $97,786,339
Exercised Options: $97,786,339
Current Obligation: $91,561,093
Actual Outlays: $655,510
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $23,172,782
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-09-30
Current End Date: 2020-12-31
Potential End Date: 2025-04-16 00:00:00
Last Modified: 2025-04-28
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