DoD Awards $180M to Lockheed Martin for Navigation Systems, Lacking Competition
Contract Overview
Contract Amount: $180,238,926 ($180.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-06-30
End Date: 2021-07-31
Contract Duration: 1,857 days
Daily Burn Rate: $97.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: NORWAY ITALY REPROGRAMMING LABORATORY (NIRL) IGF::OT::IGF
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76101
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $180.2 million to LOCKHEED MARTIN CORPORATION for work described as: NORWAY ITALY REPROGRAMMING LABORATORY (NIRL) IGF::OT::IGF Key points: 1. Significant award to a single large contractor, Lockheed Martin. 2. The contract is for critical navigation and guidance systems. 3. Lack of competition raises concerns about price and innovation. 4. The sector is specialized in advanced defense instrumentation.
Value Assessment
Rating: questionable
The award amount is substantial. Without competitive bidding, it's difficult to assess if the $180.2 million represents fair market value. Benchmarking against similar contracts for navigation systems is challenging due to the 'not available for competition' status.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not available for competition, indicating a sole-source or limited source justification. This significantly restricts price discovery and potentially leads to higher costs for taxpayers as the contractor faces less pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential navigation systems, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying for critical defense navigation technology. Limited visibility into the justification for sole-source procurement. Potential for reduced innovation due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Justification
- High Contract Value
Positive Signals
- Award to established contractor
- Definitive contract type
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a highly specialized area within defense. Spending in this niche can be high due to technological complexity and R&D requirements.
Small Business Impact
The data indicates no specific set-aside for small businesses. Large, sole-source contracts often bypass small business participation unless they are subcontractors to the prime.
Oversight & Accountability
The 'not available for competition' status warrants further scrutiny to ensure the justification was sound and that all avenues for competition were explored. Oversight should focus on the pricing and performance metrics of this sole-source award.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in procurement justification
- Reliance on a single large contractor
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.2 million to LOCKHEED MARTIN CORPORATION. NORWAY ITALY REPROGRAMMING LABORATORY (NIRL) IGF::OT::IGF
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 $180.2 million.
What is the period of performance?
Start: 2016-06-30. End: 2021-07-31.
What was the specific justification for limiting competition on this significant contract?
The justification for limiting competition is crucial for understanding the value proposition. Without it, it's impossible to determine if unique capabilities, proprietary technology, or urgent needs necessitated a sole-source award. This information is key to assessing whether the government received fair value and if taxpayer funds were used efficiently.
How does the pricing of this contract compare to similar sole-source procurements in the defense navigation sector?
Benchmarking sole-source contracts is inherently difficult. However, comparing the per-unit cost or overall value against historical sole-source awards for comparable navigation systems, adjusted for inflation and technological advancements, could reveal potential overpricing. This analysis requires access to detailed contract data and market intelligence.
What mechanisms are in place to ensure effective performance and cost control given the lack of competition?
With limited competition, robust oversight and strong performance metrics become paramount. The government should have implemented stringent contract clauses, regular performance reviews, and potentially incentive structures within the fixed-price incentive framework to ensure Lockheed Martin delivers high-quality systems efficiently and within budget, despite the lack of market pressure.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001915R0084
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1 LOCKHEED BLVD, FORT WORTH, TX, 76108
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: $180,238,926
Exercised Options: $180,238,926
Current Obligation: $180,238,926
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $28,280,833
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-06-30
Current End Date: 2021-07-31
Potential End Date: 2021-07-31 00:00:00
Last Modified: 2021-09-21
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