DoD awards $196M contract to Lockheed Martin for missile and space systems
Contract Overview
Contract Amount: $62,423,632 ($62.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2005-05-05
End Date: 2008-11-24
Contract Duration: 1,299 days
Daily Burn Rate: $48.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200508!000033!5700!FA8677!AAC/YHK !FA867705C0025 !A!N! !N! ! !20050505!20061231!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000000478302!Y!N!000052908950!1095!MISCELLANEOUS WEAPONS !A2 !MISSILE AND SPACE SYSTEMS !000 !* !336414!E! !3! ! ! ! ! !20200930!B!A! !N!Z!C!N!J!1!001!N!1B!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! ! ! !Y! ! !0001! !
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $62.4 million to LOCKHEED MARTIN CORPORATION for work described as: 200508!000033!5700!FA8677!AAC/YHK !FA867705C0025 !A!N! !N! ! !20050505!20061231!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORAN… Key points: 1. The contract is for miscellaneous weapons, specifically missile and space systems. 2. Lockheed Martin Corporation, a major defense contractor, received the award. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Defense, with a specific focus on IT and aerospace components.
Value Assessment
Rating: questionable
The contract value of $196,189,385 is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these missile and space systems.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The award to a single large defense contractor concentrates spending. The specific nature of missile and space systems suggests a critical national security component.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Award to established defense contractor
- Focus on critical defense systems
Sector Analysis
This contract falls within the Defense sector, specifically for missile and space systems. Spending in this area is often characterized by high R&D costs and specialized manufacturing.
Small Business Impact
The award went to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny to ensure fair pricing and effective use of taxpayer funds. Oversight should focus on justification for sole-source procurement.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of price competition
- Potential for cost overruns
- Limited transparency in pricing
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.4 million to LOCKHEED MARTIN CORPORATION. 200508!000033!5700!FA8677!AAC/YHK !FA867705C0025 !A!N! !N! ! !20050505!20061231!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000000478302!Y!N!000052908950!1095!MISCELLANEOUS WEAPONS !A2 !MISSILE AND SPACE SYSTEMS !000 !* !336414!E! !3! ! ! ! ! !202
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 $62.4 million.
What is the period of performance?
Start: 2005-05-05. End: 2008-11-24.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of alternative sources. A thorough review would be required to validate these claims and ensure no viable competitive options were overlooked.
How does the unit cost compare to similar missile and space systems procured competitively?
Without competitive benchmarks, it's challenging to assess the unit cost. A comparative analysis with similar systems, considering technological advancements and production volumes, would be necessary to determine if the price is reasonable.
What measures are in place to ensure the effectiveness and performance of these missile and space systems?
Effectiveness is typically ensured through stringent performance specifications, testing protocols, and acceptance criteria outlined in the contract. Post-delivery monitoring and operational feedback loops are also crucial for assessing and ensuring system performance.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 WEST SAND LAKE ROAD, ORLANDO, FL, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $691,782,746
Exercised Options: $691,782,746
Current Obligation: $62,423,632
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2005-05-05
Current End Date: 2008-11-24
Potential End Date: 2008-11-24 00:00:00
Last Modified: 2009-04-17
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