DoD awards $43.8M for Iraq Air Command and Control System to Lockheed Martin
Contract Overview
Contract Amount: $43,813,886 ($43.8M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2009-09-11
End Date: 2016-09-30
Contract Duration: 2,576 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IRAQ - AIR COMMAND AND CONTROL SYSTEM
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $43.8 million to LOCKHEED MARTIN CORP for work described as: IRAQ - AIR COMMAND AND CONTROL SYSTEM Key points: 1. Contract awarded to a single, large business, raising questions about small business participation. 2. Significant contract duration of 2576 days suggests a long-term need for the system. 3. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code indicates a specialized technology sector. 4. Full and open competition was utilized, suggesting a robust price discovery process.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was conducted, which typically allows for the widest range of potential bidders and promotes competitive pricing. The award to Lockheed Martin suggests they were the best value offeror.
Taxpayer Impact: Taxpayer funds are being used for a critical defense system, with the expectation of value derived from competitive bidding.
Public Impact
Enhances air command and control capabilities for operations in Iraq. Supports military readiness and operational effectiveness. Represents investment in advanced defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Cost-plus contract type can be prone to overruns.
Positive Signals
- Full and open competition utilized.
- Awarded to a known defense contractor.
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced command and control systems. Spending in this area is critical for national security and often involves complex, high-value procurements.
Small Business Impact
The contract data indicates that small businesses were not involved in this award, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed for small business participation in subcontracting.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense, which has established oversight mechanisms for major defense procurements. The duration and value suggest significant oversight is warranted.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to 'COST NO FEE' contract type.
- Lack of small business participation.
- Long contract duration may indicate potential for scope creep or evolving requirements.
- Limited insight into specific performance metrics and value for money.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.8 million to LOCKHEED MARTIN CORP. IRAQ - AIR COMMAND AND CONTROL SYSTEM
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 $43.8 million.
What is the period of performance?
Start: 2009-09-11. End: 2016-09-30.
What specific performance metrics or deliverables were established to ensure the effectiveness of the Iraq Air Command and Control System?
The provided data does not detail specific performance metrics or deliverables. However, for a system of this nature, typical metrics would include system uptime, response times, accuracy of threat detection, and successful command execution. The 'COST NO FEE' contract type implies that the contractor is responsible for delivering the system within the agreed scope, but the government would likely have quality assurance personnel monitoring progress and adherence to specifications.
How does the cost of this system compare to similar air command and control systems procured by other agencies or allies?
Benchmarking the cost of this $43.8 million contract is challenging without access to detailed cost breakdowns and specific system capabilities. The 'COST NO FEE' structure also complicates direct cost comparisons. A thorough analysis would require comparing the system's features, technological sophistication, and operational scope against publicly available data for comparable systems, considering factors like inflation and market conditions at the time of procurement.
What are the long-term sustainment and upgrade costs associated with this system beyond the initial contract period?
The initial contract covers the period from 2009 to 2016. Information on long-term sustainment and upgrade costs is not provided. Defense systems often require ongoing maintenance, software updates, and hardware refreshes. Future contracts for sustainment, upgrades, or follow-on systems would be necessary and would represent additional taxpayer investment beyond this initial award.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 3333 PILOT KNOB RD, EAGAN, MN, 55121
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: $43,813,886
Exercised Options: $43,813,886
Current Obligation: $43,813,886
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-11
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2017-08-03
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