DoD awards $147.7M for MH-60R APS-147 ARPDD System to Lockheed Martin
Contract Overview
Contract Amount: $147,672,887 ($147.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2007-12-28
End Date: 2013-05-30
Contract Duration: 1,980 days
Daily Burn Rate: $74.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH-60R APS-147 ARPDD SYSTEM
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $147.7 million to LOCKHEED MARTIN CORPORATION for work described as: MH-60R APS-147 ARPDD SYSTEM Key points: 1. The contract value is $147.7 million. 2. Lockheed Martin Corporation is the sole awardee. 3. The contract falls under the Defense sector. 4. The award was made via full and open competition after exclusion of sources.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The duration of 1980 days (approx. 5.4 years) is substantial, increasing the potential for cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded using 'Full and Open Competition After Exclusion of Sources'. This suggests that while competition was sought, specific sources were excluded, potentially limiting the breadth of price discovery and competitive pressure.
Taxpayer Impact: The use of a Cost Plus Fixed Fee contract with potential limitations on competition may result in higher costs for taxpayers compared to a fixed-price contract with broader competition.
Public Impact
Ensures continued operational capability for MH-60R helicopters. Supports a critical component for naval aviation. Potential for cost overruns due to contract type and duration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Limited competition parameters
Positive Signals
- Supports critical defense systems
- Awarded by Department of Defense
Sector Analysis
This contract is within the Defense sector, specifically for aircraft parts. Spending in this area is driven by military readiness and modernization needs. Benchmarks for similar complex systems contracts can vary widely based on technology and scope.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no explicit indication of small business participation in the provided data, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight would focus on cost control, performance, and adherence to contract terms, especially given the CPFF structure.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition may have reduced price competitiveness.
- Long contract duration increases risk exposure.
- Lack of small business participation noted.
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 $147.7 million to LOCKHEED MARTIN CORPORATION. MH-60R APS-147 ARPDD SYSTEM
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 $147.7 million.
What is the period of performance?
Start: 2007-12-28. End: 2013-05-30.
What specific factors led to the exclusion of certain sources in the competition?
The exclusion of sources in a 'Full and Open Competition After Exclusion of Sources' award typically stems from specific technical requirements, proprietary technology, or unique capabilities that only a limited number of contractors possess. Understanding these specific requirements is crucial to assessing whether the exclusion was justified and if it truly represented the best path to acquiring the necessary system.
How effectively was cost growth managed under this Cost Plus Fixed Fee contract?
Assessing cost growth requires access to detailed contract performance reports and financial data beyond the initial award. For a CPFF contract, the government's oversight is critical in monitoring expenditures against the estimated cost and ensuring the fixed fee remains appropriate. Without post-award data, it's difficult to definitively state how effectively cost growth was managed, but the contract type inherently carries a higher risk of it.
What is the long-term strategic value of the APS-147 ARPDD system to the MH-60R fleet?
The APS-147 ARPDD system is a critical component for the MH-60R Seahawk helicopter, likely providing advanced radar and data processing capabilities essential for its multi-mission roles, including anti-submarine warfare and anti-surface warfare. Its continued support ensures the operational readiness and effectiveness of a key naval aviation asset, contributing significantly to national security objectives.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1801 STATE ROUTE 17C, OWEGO, NY, 13827
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $147,672,887
Exercised Options: $147,672,887
Current Obligation: $147,672,887
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-12-28
Current End Date: 2013-05-30
Potential End Date: 2013-05-30 00:00:00
Last Modified: 2023-09-18
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