DoD Awards $22.2M Aircraft Manufacturing Contract to Lockheed Martin, Limited Competition
Contract Overview
Contract Amount: $22,195,018 ($22.2M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2018-01-18
End Date: 2026-06-30
Contract Duration: 3,085 days
Daily Burn Rate: $7.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CNISP EFFORT
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to LOCKHEED MARTIN CORP for work described as: CNISP EFFORT Key points: 1. Significant contract value of $22.2 million. 2. Sole-source award to Lockheed Martin suggests limited competition. 3. Aircraft manufacturing sector is critical for national defense. 4. Potential for cost overruns with Cost Plus Fixed Fee contract type.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs compared to fixed-price contracts if not managed carefully. Benchmarking against similar aircraft manufacturing 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 there is no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the goods or services provided.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. The Department of Defense relies on this contract for critical aircraft manufacturing. Long contract duration (until 2026) means sustained financial commitment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration increases exposure to potential cost increases.
Positive Signals
- Contract awarded to a major defense contractor with proven capabilities.
- Supports critical aircraft manufacturing for the Air Force.
Sector Analysis
This contract falls within the aircraft manufacturing sector, a key component of the defense industry. Spending in this sector is often characterized by high R&D costs and complex production processes, with significant government oversight required.
Small Business Impact
This contract was awarded to Lockheed Martin, a large corporation, and there is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight will be crucial to ensure cost control and performance, especially given the Cost Plus Fixed Fee structure and sole-source nature.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Potential for cost overruns due to contract type and long duration.
- Limited transparency on specific deliverables and cost breakdowns.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to LOCKHEED MARTIN CORP. CNISP EFFORT
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 $22.2 million.
What is the period of performance?
Start: 2018-01-18. End: 2026-06-30.
What specific aircraft or components are being manufactured under this contract, and how does their unique nature justify a sole-source award?
The specific aircraft or components are not detailed in the provided data. A sole-source award is typically justified when only one responsible source can provide the required supplies or services due to unique capabilities, proprietary technology, or urgent need. Further investigation into the justification for this sole-source award is warranted to ensure it aligns with federal procurement regulations and serves the best interest of the government.
What are the projected cost ceilings and profit margins for Lockheed Martin under this Cost Plus Fixed Fee contract?
The provided data does not specify the cost ceilings or profit margins associated with this Cost Plus Fixed Fee contract. This type of contract involves reimbursing the contractor for allowable costs plus a fixed fee representing profit. Effective oversight is necessary to monitor costs and ensure the fixed fee remains reasonable and reflects the level of risk undertaken by the contractor.
How will the Department of the Air Force ensure effective oversight and accountability to mitigate risks associated with a sole-source, cost-reimbursement contract?
The Department of the Air Force will likely employ robust contract management practices, including regular performance reviews, detailed cost audits, and milestone tracking. Establishing clear performance metrics and communication channels with Lockheed Martin will be essential. Proactive identification and mitigation of potential cost overruns and schedule delays are critical for ensuring value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $22,673,979
Exercised Options: $22,195,018
Current Obligation: $22,195,018
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $430,126
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862516D6458
IDV Type: IDC
Timeline
Start Date: 2018-01-18
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-04-21
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