DoD's $51.9M Enterprise Spares Catalog with Lockheed Martin Faces Limited Competition

Contract Overview

Contract Amount: $51,946,559 ($51.9M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2025-12-23

End Date: 2029-02-28

Contract Duration: 1,163 days

Daily Burn Rate: $44.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CALENDAR YEAR 2025 ENTERPRISE SPARES PRE-PRICED CATALOG

Place of Performance

Location: MARIETTA, COBB County, GEORGIA, 30063

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $51.9 million to LOCKHEED MARTIN CORP for work described as: CALENDAR YEAR 2025 ENTERPRISE SPARES PRE-PRICED CATALOG Key points: 1. Significant contract value for aircraft spares. 2. Sole-source award to Lockheed Martin limits competitive pricing. 3. Long contract duration (2029) raises long-term value concerns. 4. Focus on aircraft manufacturing sector.

Value Assessment

Rating: questionable

The contract's pre-priced catalog nature, awarded without competition, makes it difficult to assess value against market benchmarks. The lack of competitive bidding suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for essential aircraft spares.

Public Impact

Ensures availability of critical aircraft spare parts for the Air Force. Potential for higher costs due to lack of competitive bidding. Long-term commitment may lock the government into specific pricing structures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Ensures availability of critical parts
Pre-priced catalog for streamlined ordering

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for enterprise spares. Spending in this area is critical for maintaining military readiness, but competitive sourcing is key to cost efficiency.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to a large prime contractor.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Robust justification for the sole-source award should be readily available.

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.
Long contract duration may not reflect market changes.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.9 million to LOCKHEED MARTIN CORP. CALENDAR YEAR 2025 ENTERPRISE SPARES PRE-PRICED CATALOG

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 $51.9 million.

What is the period of performance?

Start: 2025-12-23. End: 2029-02-28.

What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without this information, it's difficult to ascertain if the government received the best possible value or if competition was unnecessarily excluded.

How will the government ensure fair pricing and prevent cost escalation over the contract's duration, given the lack of competition?

Mechanisms to ensure fair pricing in sole-source contracts often include rigorous cost analysis, benchmarking against similar contracts, and negotiation of profit margins. Regular performance reviews and market research can also help identify opportunities to re-introduce competition or negotiate better terms.

What is the potential impact on aircraft readiness if these specific spares are not procured competitively?

If these spares are critical and unique to Lockheed Martin's platforms, a sole-source award might be necessary for readiness. However, if alternatives exist or if the pricing is significantly inflated, the lack of competition could divert funds from other readiness initiatives or lead to reduced procurement of other essential items.

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: 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: $51,980,981

Exercised Options: $51,980,981

Current Obligation: $51,946,559

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