Coast Guard awards $20.1M for HC-144A MPA Mission System Pallets to Lockheed Martin

Contract Overview

Contract Amount: $20,103,262 ($20.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2012-09-28

End Date: 2015-09-27

Contract Duration: 1,094 days

Daily Burn Rate: $18.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT AWARD FOR THE PRODUCTION AND DELIVERY OF HC-144A MPA MISSION SYSTEM PALLETS (MSP).

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.1 million to LOCKHEED MARTIN CORPORATION for work described as: CONTRACT AWARD FOR THE PRODUCTION AND DELIVERY OF HC-144A MPA MISSION SYSTEM PALLETS (MSP). Key points: 1. Contract awarded for specialized aircraft mission system components. 2. Sole-source award to a major defense contractor. 3. Fixed-price contract type aims to control costs. 4. Duration of the contract is approximately three years. 5. The award falls under the Aircraft Manufacturing NAICS code. 6. No small business set-aside was indicated for this award.

Value Assessment

Rating: fair

The contract value of $20.1 million for mission system pallets appears to be a significant investment. Without specific details on the number of units or the complexity of the pallets, a direct value-for-money assessment is challenging. Benchmarking against similar procurements for specialized aircraft components would be necessary to determine if the pricing is competitive. The firm fixed-price structure suggests an expectation of cost certainty, but the absence of competitive bidding limits the ability to verify optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been solicited.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not leverage multiple offers to secure the best possible value.

Public Impact

The U.S. Coast Guard will benefit from the delivery of these mission system pallets. These components are critical for the operational effectiveness of the HC-144A Maritime Patrol Aircraft. The services delivered support national security and maritime surveillance missions. The contract's impact is primarily on the Coast Guard's aviation capabilities. Workforce implications are likely within Lockheed Martin's facilities involved in aircraft component manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if not closely managed due to lack of competitive pressure.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Award to a known defense contractor suggests established capabilities.
Supports critical mission capabilities for the U.S. Coast Guard.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and component integration. The market for specialized aircraft mission systems is often dominated by a few large, established defense contractors due to the high barriers to entry, including technological expertise, security clearances, and existing relationships with government agencies. Spending in this area is driven by the need for advanced surveillance, reconnaissance, and operational capabilities for military and homeland security assets.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. The award to a large prime contractor like Lockheed Martin typically means that the primary work is performed in-house or by other large subcontractors. This limits the direct economic benefit to the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. As a sole-source award, scrutiny may focus on the justification for this procurement approach and the adherence to the firm fixed-price terms. Transparency regarding the specific details of the mission system pallets and their development would be key for effective oversight. Inspector General involvement would depend on any reported issues or audits related to performance or cost.

Related Government Programs

HC-144A Aircraft Procurement
Maritime Patrol Aircraft Programs
Aerospace Component Manufacturing
Homeland Security Aviation Assets

Risk Flags

Sole-source award justification requires careful review.
Potential for cost overruns due to lack of competition.
Dependence on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.1 million to LOCKHEED MARTIN CORPORATION. CONTRACT AWARD FOR THE PRODUCTION AND DELIVERY OF HC-144A MPA MISSION SYSTEM PALLETS (MSP).

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2012-09-28. End: 2015-09-27.

What specific capabilities do the HC-144A MPA Mission System Pallets provide, and how do they enhance the aircraft's effectiveness?

The HC-144A Maritime Patrol Aircraft (MPA) Mission System Pallets (MSP) are specialized integrated systems designed to equip the aircraft with advanced mission capabilities. These pallets likely house sensors, communication equipment, data processing units, and other critical avionics necessary for surveillance, reconnaissance, and command and control operations. By providing a modular and potentially upgradeable platform, the MSPs allow the Coast Guard to adapt the HC-144A to evolving mission requirements, such as enhanced maritime domain awareness, search and rescue coordination, and law enforcement support. The specific enhancements would depend on the sensors and processing power integrated into the pallets, but generally, they aim to improve the aircraft's ability to detect, track, and identify targets over vast maritime areas.

What is the historical spending trend for HC-144A Mission System Pallets or similar components from Lockheed Martin?

Analyzing historical spending for HC-144A Mission System Pallets specifically from Lockheed Martin is challenging without access to detailed contract databases. However, Lockheed Martin is a major defense contractor with extensive experience in developing and producing complex systems for various aircraft platforms. Spending on such specialized components is typically project-driven and can fluctuate based on aircraft modernization programs, fleet expansion, or upgrades. The $20.1 million award in 2012 for a three-year period suggests a significant, but not necessarily continuous, investment. Broader spending on the HC-144A program itself, including airframes and other systems, would provide a larger context, but direct comparisons for these specific pallets would require granular data on prior awards.

What are the risks associated with a sole-source award for critical aircraft components like these mission system pallets?

Sole-source awards for critical aircraft components carry several inherent risks. Primarily, the lack of competition can lead to inflated pricing, as the government does not benefit from the cost-saving pressures that multiple bidders would typically exert. There's also a risk of reduced innovation, as the sole provider may have less incentive to develop more cost-effective or technologically superior solutions. Furthermore, dependence on a single supplier can create supply chain vulnerabilities; if the contractor experiences production issues, delays, or financial instability, it could significantly impact the operational readiness of the aircraft. Ensuring robust contract management and oversight becomes even more crucial in sole-source situations to mitigate these risks and verify fair pricing and timely delivery.

How does this contract compare in value and scope to other recent procurements for similar aircraft mission systems?

Comparing this $20.1 million contract for HC-144A MPA Mission System Pallets to other recent procurements requires access to a broad range of defense contracting data. However, given that the HC-144A is a specific platform, direct comparisons might be limited. Generally, mission system procurements for military and patrol aircraft can range from tens of millions to hundreds of millions of dollars, depending on the complexity, the number of units, and the specific technologies involved. Awards to major defense contractors like Lockheed Martin for integrated systems often represent substantial investments. Without knowing the exact specifications and quantity of pallets in this award, a precise benchmark is difficult, but the value appears consistent with specialized, high-technology components for a government aircraft program.

What is Lockheed Martin's track record in delivering complex mission systems for government aviation programs?

Lockheed Martin has a long and extensive track record of delivering complex mission systems for a wide array of government aviation programs, including those for the U.S. Air Force, Navy, and international partners. They are a prime contractor on numerous advanced platforms and are known for their capabilities in systems integration, sensor development, and avionics. Their experience spans fighter jets, transport aircraft, helicopters, and surveillance platforms. While specific performance details for every contract are not publicly available, their continued success in securing large, complex contracts indicates a generally strong performance history and established credibility in delivering sophisticated aviation systems that meet stringent military and government requirements.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSCG23-12-R-2DA019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,103,262

Exercised Options: $20,103,262

Current Obligation: $20,103,262

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,762,215

Contract Characteristics

Cost or Pricing Data: YES

Timeline