DoD Awards $136M for Radar Equipment to Lockheed Martin, Raising Competition Concerns
Contract Overview
Contract Amount: $45,692,500 ($45.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2004-05-27
End Date: 2013-07-31
Contract Duration: 3,352 days
Daily Burn Rate: $13.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200411!006794!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404C2019 !A!N! !N! ! !20040527!20090131!130956345!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !ELECTRONICS PARKWAY BLDG 7!SYRACUSE !NY!13221!73000!067!36!SYRACUSE !ONONDAGA !NEW YORK !+000032748998!Y!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !3! ! ! ! ! !99990909!B!D!N!A! !D!Y!J!1!001!N!1A!A!Y!A! ! !N!C!N! ! ! !Z!Z!A!A!00 !A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $45.7 million to LOCKHEED MARTIN CORPORATION for work described as: 200411!006794!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404C2019 !A!N! !N! ! !20040527!20090131!130956345!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !ELECTRONICS PARKWAY BLDG 7!SYRACUSE !NY!13221!73000!067!36!SYRACUSE !ONON… Key points: 1. Significant contract awarded to a single large business, raising questions about competition. 2. The contract value of $136.3 million is substantial, warranting close scrutiny. 3. The 'Not Competed' award type suggests potential missed opportunities for cost savings. 4. The sector is Defense, specifically electronics and communication equipment.
Value Assessment
Rating: questionable
The contract value of $136.3 million for radar equipment appears high, especially given the 'Not Competed' award. Benchmarking against similar contracts for comparable systems is crucial to assess if this price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and may lead to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of Defense relies on this equipment, making its cost and effectiveness critical. Lack of transparency in the procurement process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential Overpricing
- Limited Transparency
Positive Signals
- Awarded to a known defense contractor
- Contract duration aligns with potential technology lifecycle
Sector Analysis
This contract falls within the Defense sector, specifically for electronics and communication equipment. Spending in this area is often high due to the specialized nature and technological advancements required.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large, complex defense contracts.
Oversight & Accountability
The 'Not Competed' status warrants further investigation by oversight bodies to ensure the justification for limited competition was sound and that taxpayer funds were used efficiently.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may have led to inflated costs.
- Potential for overpayment due to limited price discovery.
- Limited transparency in the procurement process.
- No clear indication of small business involvement.
- Contract awarded for a significant duration (original award to end date).
Tags
other-communications-equipment-manufactu, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.7 million to LOCKHEED MARTIN CORPORATION. 200411!006794!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785404C2019 !A!N! !N! ! !20040527!20090131!130956345!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !ELECTRONICS PARKWAY BLDG 7!SYRACUSE !NY!13221!73000!067!36!SYRACUSE !ONONDAGA !NEW YORK !+000032748998!Y!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $45.7 million.
What is the period of performance?
Start: 2004-05-27. End: 2013-07-31.
What was the specific justification for not competing this contract, and was it adequately documented?
The justification for not competing this contract is critical for understanding the procurement decision. Agencies typically require detailed documentation outlining why a full and open competition was not feasible, such as the existence of a unique capability, urgent need, or specific government-owned intellectual property. Without this documentation, it's difficult to assess if the limited competition was truly warranted or if it represents a missed opportunity for better value.
How does the per-unit cost of this radar equipment compare to similar systems procured competitively by the DoD or other agencies?
Comparing the per-unit cost to similar systems procured competitively is essential for value assessment. If this contract's pricing is significantly higher, it suggests that the lack of competition led to inflated costs. Benchmarking against publicly available data or conducting a cost realism analysis would reveal if taxpayers received a fair price for the radar equipment.
What is the operational impact and effectiveness of this radar equipment, and how does it contribute to the Marine Corps' mission?
Understanding the operational impact and effectiveness of the radar equipment is crucial, regardless of the procurement method. This involves assessing its performance metrics, reliability, and contribution to the Marine Corps' overall mission capabilities. Even with a sole-source award, ensuring the equipment meets stringent operational requirements and provides necessary defense capabilities is paramount for mission success.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ELECTRONICS PARKWAY BLDG 7, SYRACUSE, NY, 13221
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-05-27
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2018-11-01
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