DoD Awards $75.3M for ARPDD Retrofit Kits to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $75,349,045 ($75.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-01-26
End Date: 2024-12-30
Contract Duration: 2,895 days
Daily Burn Rate: $26.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ARPDD "STD" RETROFIT P-KITS
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $75.3 million to LOCKHEED MARTIN CORPORATION for work described as: ARPDD "STD" RETROFIT P-KITS Key points: 1. Significant contract value of $75.3 million awarded. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long contract duration of 2895 days suggests a sustained need. 4. Focus on navigation and guidance systems indicates critical defense capabilities.
Value Assessment
Rating: questionable
The contract value of $75.3 million for ARPDD retrofit kits is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts or market rates, raising questions about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition on this $75.3 million contract means taxpayers may be paying a premium for these retrofit kits.
Public Impact
Naval operations may be impacted by the availability and performance of these retrofit kits. Defense spending on specialized equipment highlights ongoing modernization efforts. The long-term nature of the contract suggests a critical and enduring requirement for these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Critical defense system
- Long-term sustainment
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to the manufacturing of navigation and guidance systems. Spending benchmarks for similar specialized defense systems can vary widely based on technological complexity and quantity.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific award, suggesting limited opportunities for SMB participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery. Accountability for the justification of non-competition is crucial.
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
- Sole-source award lacks competitive pricing.
- Long contract duration may not reflect evolving needs.
- No indication of small business participation.
- Potential for cost overruns due to non-competitive nature.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.3 million to LOCKHEED MARTIN CORPORATION. ARPDD "STD" RETROFIT P-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 $75.3 million.
What is the period of performance?
Start: 2017-01-26. End: 2024-12-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for compatibility with existing systems where only one vendor can meet the requirement. Without specific documentation, it's presumed the Department of the Navy determined Lockheed Martin was the only viable source for these ARPDD retrofit kits.
What are the potential risks associated with a sole-source contract of this magnitude?
The primary risks include inflated pricing due to lack of competition, potential for complacency from the sole provider leading to reduced quality or innovation, and a lack of flexibility if requirements change. The government also loses the opportunity to benefit from competitive pressures that drive down costs and improve service.
How will the effectiveness of these retrofit kits be measured given the lack of competitive benchmarking?
Effectiveness will likely be measured through performance metrics defined in the contract's statement of work, such as operational readiness, reliability, and adherence to technical specifications. Independent government testing and user feedback from naval personnel will also be critical in assessing the kits' actual performance and value.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001915R0028
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $75,349,045
Exercised Options: $75,349,045
Current Obligation: $75,349,045
Actual Outlays: $2,621,186
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $244,964,222
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001916D0051
IDV Type: IDC
Timeline
Start Date: 2017-01-26
Current End Date: 2024-12-30
Potential End Date: 2024-12-30 00:00:00
Last Modified: 2024-06-26
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