Navy Awards $311.8M Contract to Lockheed Martin for TACAMO Aircraft Manufacturing
Contract Overview
Contract Amount: $311,784,977 ($311.8M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2022-06-14
End Date: 2027-07-31
Contract Duration: 1,873 days
Daily Burn Rate: $166.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROPOSAL PREP FOR NAVY TACAMO OFFICE
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $311.8 million to LOCKHEED MARTIN CORP for work described as: PROPOSAL PREP FOR NAVY TACAMO OFFICE Key points: 1. Significant contract value of $311.8 million awarded to a single large business. 2. Sole-source award to Lockheed Martin suggests limited competition and potential for higher pricing. 3. Long contract duration (2022-2027) indicates a substantial, long-term commitment. 4. Aircraft manufacturing sector is critical for defense, but often involves high costs.
Value Assessment
Rating: questionable
The contract value of $311.8 million for aircraft manufacturing services appears high, especially given it was not competed. Benchmarking against similar sole-source contracts in the defense aircraft sector is difficult without more detailed cost breakdowns, but the lack of competition raises concerns about optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was solicited. This significantly limits price discovery and competition, potentially leading to less favorable terms for the government compared to a competed procurement.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these aircraft manufacturing services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially inflated costs for years. Dependence on a single contractor for critical defense capabilities poses a strategic risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Award to established defense contractor
- Supports critical defense mission (TACAMO)
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending in this area is typically high due to complex engineering, specialized materials, and stringent quality requirements. Benchmarks are difficult without specific aircraft type, but large sole-source defense contracts often exceed competitive pricing.
Small Business Impact
This contract was awarded to Lockheed Martin Corp, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that Lockheed Martin is meeting all contractual obligations. Robust performance monitoring and auditing are crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may lock in unfavorable costs.
- No indication of small business participation.
- High contract value requires close scrutiny.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $311.8 million to LOCKHEED MARTIN CORP. PROPOSAL PREP FOR NAVY TACAMO OFFICE
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 $311.8 million.
What is the period of performance?
Start: 2022-06-14. End: 2027-07-31.
What specific justification was provided for the sole-source award to Lockheed Martin, and how does it align with federal procurement regulations for non-competitive procurements?
Federal regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. For this Navy TACAMO contract, the justification likely centers on unique capabilities, proprietary technology, or essential integration with existing platforms that only Lockheed Martin possesses. A thorough review would confirm if these conditions were met and if alternative solutions were adequately explored.
How does the per-unit cost of this contract compare to similar aircraft manufacturing contracts, particularly those awarded competitively, to assess value for money?
Direct comparison is challenging without knowing the specific aircraft model and configuration. However, sole-source contracts inherently lack the price pressure of competition. If comparable competitive contracts exist for similar platforms, a significant cost premium for this Lockheed Martin award would be a strong indicator of poor value. The government should have conducted a price analysis based on historical data or independent cost estimates.
What are the potential risks associated with a sole-source, long-term contract for critical defense aircraft manufacturing, and what mitigation strategies are in place?
Risks include potential cost overruns, reduced innovation, contractor complacency, and supply chain vulnerabilities if Lockheed Martin faces issues. Mitigation strategies should involve stringent contract management, performance metrics, regular cost reviews, and contingency planning for potential disruptions. Maintaining open communication channels and exploring options for future competition are also vital.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $311,784,977
Exercised Options: $311,784,977
Current Obligation: $311,784,977
Subaward Activity
Number of Subawards: 274
Total Subaward Amount: $90,519,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862520D3000
IDV Type: IDC
Timeline
Start Date: 2022-06-14
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2025-04-26
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