DoD awards $110.6M contract to Lockheed Martin for SH-60 Seahawk aircraft parts
Contract Overview
Contract Amount: $110,620,284 ($110.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2000-03-14
End Date: 2006-09-30
Contract Duration: 2,391 days
Daily Burn Rate: $46.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Official Description: 200011!1700!000834!AC524 !NAVAL AIR SYSTEMS COMMAND !N0001900C0249 !A!*!* !20000314!20020701!002232973!834951691!834951691!N!03640!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !0001!+000012990000!N!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !2AHV!SH-60 SEAHAWK !3728!1!*!*!*!B!A!*!D !U!V!1!001!N!1A!A!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $110.6 million to LOCKHEED MARTIN CORPORATION for work described as: 200011!1700!000834!AC524 !NAVAL AIR SYSTEMS COMMAND !N0001900C0249 !A!*!* !20000314!20020701!002232973!834951691!834951691!N!03640!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIO… Key points: 1. Contract awarded to Lockheed Martin for SH-60 Seahawk aircraft components. 2. The contract value is $110,620,283.79. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Defense, specifically aircraft parts.
Value Assessment
Rating: fair
The contract value of $110.6 million for aircraft parts appears substantial. Without specific unit details or comparison data, it's difficult to definitively assess pricing against similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This can lead to higher prices as there is less pressure from market forces to offer the best value.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts.
Public Impact
This contract supports the operation and maintenance of the SH-60 Seahawk helicopter fleet, crucial for naval operations. The award to Lockheed Martin, a major defense contractor, highlights the concentration of defense spending within large corporations. The duration of the contract (over 2 years) suggests ongoing sustainment needs for this aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
Positive Signals
- Supports critical naval aviation assets
- Award to established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts (AIRFRAMES AND SPARES). Defense spending on aircraft sustainment is a significant portion of the DoD budget, with major contractors like Lockheed Martin dominating this space.
Small Business Impact
The award went to Lockheed Martin Corporation, a large prime contractor. There is no immediate indication of small business participation in this specific award, which is common for large, complex defense contracts.
Oversight & Accountability
The contract was awarded by the NAVAL AIR SYSTEMS COMMAND. Oversight would typically involve contract management by the Defense Contract Management Agency (DCMA) to ensure compliance with terms and conditions.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Dependency on a single supplier
- Limited transparency on specific part costs
Tags
department-of-defense, ny, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.6 million to LOCKHEED MARTIN CORPORATION. 200011!1700!000834!AC524 !NAVAL AIR SYSTEMS COMMAND !N0001900C0249 !A!*!* !20000314!20020701!002232973!834951691!834951691!N!03640!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !0001!+000012990000!N!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !2AHV!SH-60 SEAHAWK !3728!1!*!*!*!B!A!*!D !U!V!
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 $110.6 million.
What is the period of performance?
Start: 2000-03-14. End: 2006-09-30.
What is the specific breakdown of parts and their associated costs within this $110.6 million award?
The provided data indicates the contract is for 'AIRCRAFT ROTARY WING' and specifically 'AIRFRAMES AND SPARES' for the 'SH-60 SEAHAWK'. However, a detailed breakdown of individual parts and their quantities or unit costs is not available in this dataset. Further analysis would require access to the contract's detailed statement of work and line item details to understand the cost allocation.
What are the risks associated with a sole-source award for critical aircraft components?
Sole-source awards for critical components like those for the SH-60 Seahawk carry risks of inflated pricing due to the absence of competitive bidding. This can lead to inefficient use of taxpayer funds. Additionally, it can create dependency on a single supplier, potentially impacting supply chain resilience and future negotiation leverage.
How effective is the NAVAL AIR SYSTEMS COMMAND in ensuring value for money on non-competed contracts?
Assessing the effectiveness of NAVAL AIR SYSTEMS COMMAND (NAVAIR) on non-competed contracts requires a deeper dive into their procurement processes, justification for sole-source awards, and post-award performance metrics. While NAVAIR is responsible for acquiring and supporting naval aviation capabilities, the 'NOT COMPETED' status here suggests a potential limitation in market research or a specific justification for a sole-source approach, the validity of which would need further scrutiny.
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE (V)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1801 STATE ROUTE 17C, OWEGO, NY, 23
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2000-03-14
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2011-10-24
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