DoD Awards $54.5M for Aircraft Retrofit Kits to Lockheed Martin, Sole-Source
Contract Overview
Contract Amount: $54,468,198 ($54.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-03-30
End Date: 2017-05-31
Contract Duration: 2,254 days
Daily Burn Rate: $24.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPTION YEAR 1 ATI WRA RETROFIT B-KITS
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $54.5 million to LOCKHEED MARTIN CORPORATION for work described as: OPTION YEAR 1 ATI WRA RETROFIT B-KITS Key points: 1. Significant contract value of $54.5 million for aircraft retrofit kits. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Contract duration of 2254 days suggests a long-term need. 4. The 'Other Aircraft Parts' sector is critical for defense readiness.
Value Assessment
Rating: questionable
The contract value of $54.5 million for aircraft retrofit kits is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was solicited. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for these aircraft retrofit kits.
Public Impact
Ensures continued operational readiness for specific aircraft through necessary retrofits. Supports a major defense contractor, Lockheed Martin, and its supply chain. Potential for increased costs due to lack of competitive bidding impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Lack of price benchmark for comparison
- Long contract duration
Positive Signals
- Addresses critical aircraft modernization needs
- Secures a known supplier for essential parts
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a vital component of the aerospace and defense industry. Spending in this area is benchmarked against the overall defense budget and specific aircraft program needs.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value. Transparency in justification for sole-source awards is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing
- Potential for inflated costs
- Limited transparency on justification
- Dependency on a single supplier
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.5 million to LOCKHEED MARTIN CORPORATION. OPTION YEAR 1 ATI WRA RETROFIT B-KITS
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 $54.5 million.
What is the period of performance?
Start: 2011-03-30. End: 2017-05-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's presumed the Department of the Navy determined Lockheed Martin was the only viable option for these specific retrofit kits, possibly due to proprietary technology or integration requirements with existing platforms.
How does the $54.5 million cost compare to industry benchmarks for similar aircraft retrofit projects, considering the sole-source nature?
Direct comparison is challenging due to the sole-source award. Typically, competitive bidding drives prices down. Without competitive data, assessing the value is difficult. Industry benchmarks for similar retrofits would normally be used, but the lack of competition here suggests the price might be higher than if multiple vendors had vied for the contract.
What is the long-term impact of relying on sole-source contracts for critical aircraft components like these retrofit kits?
Long-term reliance on sole-source contracts can stifle innovation and competition within the industry, potentially leading to higher sustained costs for the government. It also creates a dependency on a single supplier, which can pose risks if that supplier faces production issues or significant price increases.
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
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001911R0049
Offers Received: 1
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: $63,117,844
Exercised Options: $54,468,198
Current Obligation: $54,468,198
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $2,173,136
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-30
Current End Date: 2017-05-31
Potential End Date: 2017-05-31 00:00:00
Last Modified: 2017-03-30
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)