DoD's $99.6M Contract for Cargo UAS Readiness Activities Awarded to Lockheed Martin
Contract Overview
Contract Amount: $99,619,274 ($99.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-12-02
End Date: 2017-06-30
Contract Duration: 2,402 days
Daily Burn Rate: $41.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CARGO UASS AND PRE-DEPLOYMENT READINESS ACTIVITIES
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $99.6 million to LOCKHEED MARTIN CORPORATION for work described as: CARGO UASS AND PRE-DEPLOYMENT READINESS ACTIVITIES Key points: 1. Significant investment in cargo Unmanned Aircraft Systems (UAS) pre-deployment readiness. 2. Sole awardee is Lockheed Martin Corporation, a major defense contractor. 3. Contract duration spans over 2000 days, indicating a long-term need. 4. Focus on scheduled freight air transportation suggests logistical support capabilities.
Value Assessment
Rating: fair
The contract value of $99.6 million over approximately 6.7 years results in an average annual spend of roughly $14.8 million. Benchmarking this against similar large-scale, long-duration defense logistics support contracts is difficult without more specific service details, but the overall value suggests a substantial program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific details of the competition and the number of bidders are not provided, making it difficult to assess the full impact on pricing.
Taxpayer Impact: Taxpayer funds are being used for critical readiness activities, aiming to enhance logistical capabilities through advanced UAS technology.
Public Impact
Enhances military logistical capabilities through advanced drone technology. Supports pre-deployment readiness, crucial for operational effectiveness. Invests in the development and sustainment of cargo UAS. Potential for future technology advancements in autonomous logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Limited insight into competitive pricing outcomes.
- Long contract duration may lead to cost overruns if not managed.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical military readiness need.
- Utilizes advanced UAS technology.
Sector Analysis
The Department of Defense frequently invests in advanced aviation and logistics technologies. Spending on cargo UAS and related readiness activities aligns with broader trends in military modernization and the increasing reliance on unmanned systems for operational support.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy, focusing on contract performance, delivery schedules, and adherence to specifications. The long duration necessitates consistent monitoring to ensure value and effectiveness.
Related Government Programs
- Scheduled Freight Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to long contract duration.
- Lack of transparency on specific performance metrics.
- Limited visibility into the competitive landscape and pricing.
- Dependence on a single large contractor.
Tags
scheduled-freight-air-transportation, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $99.6 million to LOCKHEED MARTIN CORPORATION. CARGO UASS AND PRE-DEPLOYMENT READINESS ACTIVITIES
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $99.6 million.
What is the period of performance?
Start: 2010-12-02. End: 2017-06-30.
What specific pre-deployment readiness activities are encompassed by this contract, and how do they directly contribute to operational effectiveness?
The contract likely includes training, maintenance, system integration, and testing of cargo UAS to ensure they are fully operational and ready for deployment. These activities are critical for validating system performance, crew proficiency, and logistical support chains, thereby directly enhancing the military's ability to transport essential supplies and equipment in various operational environments.
Given the full and open competition, what was the range of bids received, and how did the final negotiated price compare to the government's estimate?
While the contract was awarded under full and open competition, the specific bid range and the final negotiated price relative to the government's estimate are not publicly detailed in this data. Understanding this would provide crucial insight into the effectiveness of the competition in driving down costs and ensuring fair market value for the taxpayer.
What are the key performance indicators (KPIs) for this contract, and how is Lockheed Martin being measured against them to ensure successful outcomes?
Key performance indicators for this contract would likely focus on UAS availability, mission success rates, maintenance turnaround times, and successful completion of readiness exercises. The Department of the Navy would be responsible for tracking these KPIs and holding Lockheed Martin accountable for meeting contractual obligations, ensuring the investment yields the intended readiness improvements.
Industry Classification
NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Freight Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001910R0020
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1801 STATE RT 17 C, OWEGO, NY, 13827
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $124,135,712
Exercised Options: $99,619,274
Current Obligation: $99,619,274
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-12-02
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2017-10-02
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