DoD awards $105.9M contract to Lockheed Martin for SH-60 Seahawk aircraft parts
Contract Overview
Contract Amount: $105,886,056 ($105.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2003-05-21
End Date: 2007-11-15
Contract Duration: 1,639 days
Daily Burn Rate: $64.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200308!000015!1700!AC524 !NAVAL AIR SYSTEMS COMMAND !N0001903C0352 !A!N! !N! !20030521!20031231!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE RT 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000016964433!N!N!000016964433!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !2AHV!SH-60 SEAHAWK !336413!E! !3! ! ! ! ! !99990909!B!D!Y!A! !D!U!J!1!001!N!1A!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $105.9 million to LOCKHEED MARTIN CORPORATION for work described as: 200308!000015!1700!AC524 !NAVAL AIR SYSTEMS COMMAND !N0001903C0352 !A!N! !N! !20030521!20031231!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE RT 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA… Key points: 1. The contract is for airframes and spares for the SH-60 Seahawk helicopter. 2. Lockheed Martin Corporation is the sole awardee, indicating a non-competitive procurement. 3. The contract value is substantial at over $105 million. 4. The duration of the contract is over 4 years, suggesting a long-term need.
Value Assessment
Rating: fair
The contract value of $105.9 million for aircraft parts appears significant. Benchmarking against similar sole-source contracts for specialized aerospace components would be necessary to determine if this pricing is competitive or inflated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this substantial contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Ensures continued operational readiness of the SH-60 Seahawk fleet, a critical asset for naval operations. Supports a major defense contractor, potentially impacting jobs and the aerospace supply chain. Highlights the reliance on specific manufacturers for specialized military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Addresses a critical need for naval aviation readiness.
- Supports a key defense industrial base partner.
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts. Spending in this area is often characterized by high unit costs, long lead times, and reliance on a limited number of specialized manufacturers.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went directly to a large corporation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of the sole-source justification and verifying the reasonableness of the price through post-award analysis.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency in price justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.9 million to LOCKHEED MARTIN CORPORATION. 200308!000015!1700!AC524 !NAVAL AIR SYSTEMS COMMAND !N0001903C0352 !A!N! !N! !20030521!20031231!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE RT 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000016964433!N!N!000016964433!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !2AHV!SH-60 SEAHAWK !336413!E! !3! ! ! ! ! !99990909!B
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 $105.9 million.
What is the period of performance?
Start: 2003-05-21. End: 2007-11-15.
What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly reviewed?
The data indicates a sole-source award, meaning competition was not solicited. A thorough review would typically involve documenting why only one source could meet the requirement, such as unique capabilities, proprietary technology, or urgent need. Without access to the justification documentation, it's impossible to confirm the adequacy of the review process.
How does the per-unit cost of these aircraft parts compare to similar components purchased competitively?
Benchmarking the per-unit cost is crucial for assessing value. Since this is a sole-source award, direct competitive comparisons are unavailable. Analysis would require identifying comparable parts purchased under competitive contracts or using historical pricing data for similar components, adjusted for inflation and specifications.
What is the long-term strategy for procuring these parts to ensure future cost-effectiveness and availability?
The long-term strategy is unclear from this data. Relying on sole-source contracts for extended periods can be inefficient. Exploring options like competitive re-solicitation for future needs, long-term agreements with multiple suppliers, or even exploring alternative aircraft platforms could improve cost-effectiveness and reduce supply chain risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1801 STATE RT 17C, OWEGO, NY, 13827
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-05-21
Current End Date: 2007-11-15
Potential End Date: 2007-11-15 00:00:00
Last Modified: 2017-12-20
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