DoD Awards $266M+ Aircraft Manufacturing Contract to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $266,151,218 ($266.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-02-28
End Date: 2027-03-30
Contract Duration: 3,317 days
Daily Burn Rate: $80.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LABOR
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $266.2 million to LOCKHEED MARTIN CORPORATION for work described as: LABOR Key points: 1. Significant contract value exceeding $266 million awarded. 2. Sole-source award to Lockheed Martin indicates limited competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Aircraft manufacturing sector sees substantial government investment.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar aircraft manufacturing contracts is difficult without more detailed cost breakdowns, but the lack of competition raises concerns about overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning only one source, Lockheed Martin, was solicited. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft manufacturing services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration (2018-2027) suggests a critical, long-term need for these services. Dependence on a single contractor for essential aircraft manufacturing raises supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- No small business participation noted
Positive Signals
- Addresses critical defense need
- Established contractor with relevant experience
Sector Analysis
This contract falls within the aircraft manufacturing sector, a critical component of national defense. Spending in this area is often substantial, driven by technological advancements and strategic requirements. Benchmarks are difficult without specific aircraft type, but large sole-source awards warrant scrutiny.
Small Business Impact
There is no indication of small business participation in this contract. Sole-source awards often bypass opportunities for small businesses to compete and contribute, potentially limiting their access to significant government contracts.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure costs are reasonable and performance meets requirements. Accountability for cost control is paramount given the contract type.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost-plus contract type risks
- Potential for cost overruns
- No small business participation
- Long contract duration increases exposure
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $266.2 million to LOCKHEED MARTIN CORPORATION. LABOR
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 $266.2 million.
What is the period of performance?
Start: 2018-02-28. End: 2027-03-30.
What specific factors justified a sole-source award for this aircraft manufacturing requirement, and were alternatives thoroughly explored?
Justification for sole-source awards typically involves unique capabilities, urgent needs, or lack of viable alternatives. A thorough review would involve documenting why other manufacturers could not meet the requirements, the specific risks associated with competition, and the potential impact of delaying the acquisition. Without this documentation, it's difficult to assess if taxpayer funds are being used efficiently.
How are cost overruns managed under this Cost Plus Fixed Fee (CPFF) contract, and what mechanisms are in place to ensure fair pricing?
CPFF contracts require vigilant oversight to control costs. The government must actively monitor Lockheed Martin's expenditures, negotiate fee adjustments based on performance, and ensure that all costs are reasonable and allocable to the contract. Regular audits and performance reviews are crucial to prevent excessive spending and ensure the contractor is incentivized to manage expenses effectively.
What is the long-term strategy for ensuring competitive sourcing or mitigating risks associated with reliance on Lockheed Martin for this specific aircraft manufacturing need?
The long-term strategy should focus on fostering competition where feasible, potentially through breaking down future requirements into smaller, more competitive lots, or encouraging new entrants into the market. Alternatively, the DoD could explore developing alternative technologies or platforms that reduce reliance on a single source. Continuous market research and strategic planning are essential.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001917R0034
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $266,332,497
Exercised Options: $266,151,218
Current Obligation: $266,151,218
Actual Outlays: $21,413,752
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001914G0020
IDV Type: BOA
Timeline
Start Date: 2018-02-28
Current End Date: 2027-03-30
Potential End Date: 2027-03-30 00:00:00
Last Modified: 2025-08-12
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