DHS Awards $74.7M for P3 RE Wing Delivery Order to Lockheed Martin

Contract Overview

Contract Amount: $74,674,480 ($74.7M)

Contractor: Lockheed Martin Aeronautical Systems Support Company

Awarding Agency: Department of Homeland Security

Start Date: 2008-04-30

End Date: 2008-12-31

Contract Duration: 245 days

Daily Burn Rate: $304.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: P3 RE WING DELIVERY ORDER

Place of Performance

Location: MARIETTA, COBB County, GEORGIA, 30062

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $74.7 million to LOCKHEED MARTIN AERONAUTICAL SYSTEMS SUPPORT COMPANY for work described as: P3 RE WING DELIVERY ORDER Key points: 1. Significant award to a major defense contractor, Lockheed Martin. 2. The contract is for aircraft manufacturing, specifically P3 RE Wing. 3. Awarded under full and open competition, suggesting market availability. 4. The contract duration is 245 days, indicating a short-term need.

Value Assessment

Rating: fair

The award amount of $74.7 million for a delivery order is substantial. Benchmarking against similar aircraft component contracts is difficult without more specific details on the 'P3 RE Wing' and its complexity. The firm fixed price contract type provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The existence of multiple potential bidders for aircraft manufacturing components suggests that this method should have led to a reasonable price discovery.

Taxpayer Impact: Taxpayer funds are being used for a critical component of border protection aircraft. The competitive nature of the award aims to ensure value for money.

Public Impact

Enhances U.S. Customs and Border Protection's aerial surveillance capabilities. Supports the maintenance and operational readiness of the P3 aircraft fleet. Contributes to national security by bolstering border enforcement assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific technical details on 'P3 RE Wing'.
Limited contract duration may indicate a specific, short-term requirement.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type offers cost predictability.
Supports critical national security functions.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a specialized area of the broader aerospace and defense industry. Spending in this sector is often characterized by high R&D costs, complex supply chains, and significant government procurement.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The award was made by the Department of Homeland Security to U.S. Customs and Border Protection. Oversight would typically involve program management reviews and contract performance monitoring to ensure delivery and quality standards are met.

Related Government Programs

Aircraft Manufacturing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Lack of detailed technical specifications for the awarded item.
Short contract duration raises questions about long-term strategy.
No explicit mention of small business subcontracting goals.
Potential for cost overruns if unforeseen technical issues arise despite fixed price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $74.7 million to LOCKHEED MARTIN AERONAUTICAL SYSTEMS SUPPORT COMPANY. P3 RE WING DELIVERY ORDER

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN AERONAUTICAL SYSTEMS SUPPORT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $74.7 million.

What is the period of performance?

Start: 2008-04-30. End: 2008-12-31.

What is the specific function and technical complexity of the 'P3 RE Wing' to justify the $74.7 million cost?

The 'P3 RE Wing' likely refers to a specific component or upgrade for the P3 Orion aircraft, a long-range maritime patrol and anti-submarine warfare aircraft. Its complexity could stem from advanced avionics, structural reinforcement, or specialized sensor integration. Without detailed specifications, it's difficult to definitively assess the cost justification, but P3 aircraft are aging and require significant maintenance and modernization.

What were the key factors considered during the full and open competition that led to Lockheed Martin being selected?

During a full and open competition, the selection of Lockheed Martin would be based on a combination of factors outlined in the solicitation. These typically include technical approach, past performance, management capability, and price. Lockheed Martin's established expertise with the P3 platform and its manufacturing capabilities likely made it a strong contender, potentially offering the best overall value proposition to the government.

Given the short 245-day duration, does this delivery order represent a one-time need or part of a larger, ongoing modernization effort for the P3 fleet?

The short duration of 245 days suggests this delivery order might be for a specific, time-bound task, such as a component replacement, repair, or a limited upgrade. It could be a standalone requirement or a discrete phase within a larger, multi-year program to maintain or modernize the P3 fleet. Further contract history would be needed to determine if this is a recurring need.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 86 S COBB DR, MARIETTA, GA, 30063

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $124,474,480

Exercised Options: $124,474,480

Current Obligation: $74,674,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1008D01906

IDV Type: IDC

Timeline