DoD Awards $1.27B to Lockheed Martin for Space-Based Infrared Systems Logistics Support Through 2030
Contract Overview
Contract Amount: $1,271,723,786 ($1.3B)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2021-07-02
End Date: 2030-08-30
Contract Duration: 3,346 days
Daily Burn Rate: $380.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SPACE BASED INFRARED SYSTEMS CONTRACTOR LOGISTICS SUPPORT. PRODUCT SUPPORT INTEGRATION, CONTRACT EVOLUTION
Place of Performance
Location: LITTLETON, DOUGLAS County, COLORADO, 80125
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $1.27 billion to LOCKHEED MARTIN CORP for work described as: SPACE BASED INFRARED SYSTEMS CONTRACTOR LOGISTICS SUPPORT. PRODUCT SUPPORT INTEGRATION, CONTRACT EVOLUTION Key points: 1. Significant long-term contract for critical space infrastructure. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. High value contract requires robust oversight for taxpayer value. 4. Focus on product support integration for complex systems.
Value Assessment
Rating: questionable
The contract value of $1.27B over 9 years suggests a substantial investment. Without competitive bidding, it's difficult to assess if this pricing represents fair market value compared to potential alternatives or previous contracts for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition for this large contract raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Ensures continued operation and maintenance of vital space-based infrared systems. Supports national security by providing critical early warning capabilities. Potential for cost overruns due to sole-source nature of the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical national security system
- Experienced contractor
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-cost, technologically advanced area. Spending benchmarks are difficult to establish due to the unique nature of space-based systems and sole-source awards.
Small Business Impact
The data indicates this is a large prime contract awarded to Lockheed Martin, a major defense contractor. There is no information provided regarding subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Given the significant value and sole-source nature, robust oversight is crucial. This includes detailed performance monitoring, cost audits, and ensuring adherence to contract terms to maximize taxpayer value and mitigate risks.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High contract value over an extended period increases financial risk.
- Lack of transparency regarding specific performance metrics and oversight mechanisms.
- Potential for cost overruns without competitive pressure.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, co, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.27 billion to LOCKHEED MARTIN CORP. SPACE BASED INFRARED SYSTEMS CONTRACTOR LOGISTICS SUPPORT. PRODUCT SUPPORT INTEGRATION, CONTRACT EVOLUTION
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 $1.27 billion.
What is the period of performance?
Start: 2021-07-02. End: 2030-08-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. However, for a contract of this magnitude and duration, the agency should provide detailed documentation supporting this decision. Robust oversight, including independent cost estimates and regular audits, is essential to ensure fair pricing and prevent potential cost overruns.
What are the specific risks associated with the long-term, sole-source nature of this contract?
The primary risks include potential cost escalation due to the absence of competitive pressure, contractor complacency, and a lack of incentive for innovation. Over time, the government may pay a premium for services that could be obtained more affordably through competition. There's also a risk of vendor lock-in, making it difficult to switch providers or adopt new technologies.
How will the effectiveness of contractor logistics support be measured to ensure mission readiness?
Effectiveness should be measured through Key Performance Indicators (KPIs) tied directly to mission readiness and system availability. This includes metrics such as response times for maintenance, system uptime, successful mission completion rates, and the cost-effectiveness of support operations. Regular performance reviews and independent assessments are vital to ensure the contractor is meeting or exceeding these critical benchmarks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA882321R0001
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 12257 S WADSWORTH BLVD, LITTLETON, CO, 80125
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,097,266,157
Exercised Options: $1,392,148,698
Current Obligation: $1,271,723,786
Actual Outlays: $2,173,518
Subaward Activity
Number of Subawards: 546
Total Subaward Amount: $584,241,571
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-07-02
Current End Date: 2030-08-30
Potential End Date: 2030-08-30 00:00:00
Last Modified: 2026-01-13
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