DoD Awards $118.7M DDSR Phase II Contract to Lockheed Martin for Aircraft Parts
Contract Overview
Contract Amount: $118,743,311 ($118.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-07-02
End Date: 2026-07-26
Contract Duration: 2,581 days
Daily Burn Rate: $46.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DDSR PHASE II
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $118.7 million to LOCKHEED MARTIN CORPORATION for work described as: DDSR PHASE II Key points: 1. Significant contract value of $118.7 million awarded to a single large defense contractor. 2. Lack of competition raises questions about potential overpricing and value for taxpayer money. 3. Contract duration extends to 2026, indicating a long-term commitment with ongoing financial implications. 4. The 'Other Aircraft Parts' sector is critical for defense readiness, but this award lacks transparency.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without competitive bids, it's difficult to benchmark pricing against similar contracts to ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these aircraft parts, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to the absence of competitive bidding. The long contract duration could lock the government into potentially suboptimal pricing for years. Limited transparency in sole-source awards makes it harder for the public to assess fair pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Award to a major defense contractor with established capabilities
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a crucial component of the defense industrial base. Spending in this area is substantial, and competitive procurement is vital for efficiency.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific contract, either as subcontractors or prime bidders.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets expectations. Accountability is crucial given the significant taxpayer investment.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited price transparency
- Long contract duration
- No small business participation indicated
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $118.7 million to LOCKHEED MARTIN CORPORATION. DDSR PHASE II
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 $118.7 million.
What is the period of performance?
Start: 2019-07-02. End: 2026-07-26.
What specific justification was provided for awarding this contract on a sole-source basis, and how does the government ensure cost reasonableness without competition?
Sole-source awards typically require a documented justification, such as unique capabilities or urgent need. The government aims to ensure cost reasonableness through detailed audits, negotiation of fee structures, and comparison to historical pricing or independent cost estimates. However, without competitive benchmarking, the effectiveness of these measures can be limited.
What are the potential risks associated with a long-term, cost-plus contract for aircraft parts, particularly regarding cost overruns and technological obsolescence?
Cost-plus contracts carry inherent risks of cost overruns as the contractor is reimbursed for incurred costs plus a fee. For long-term contracts, there's also a risk of technological obsolescence if the parts specified become outdated. Effective oversight, clear performance metrics, and flexibility in contract terms are crucial to mitigate these risks.
How does the Department of the Navy ensure the effectiveness and quality of 'Other Aircraft Parts' procured under this contract to maintain fleet readiness?
The Navy likely employs stringent quality assurance procedures, including inspections, testing, and performance monitoring throughout the contract lifecycle. They would set clear technical specifications and performance standards for the parts. Ensuring effective delivery and integration of these parts is critical for maintaining the operational readiness of their aircraft.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $120,903,462
Exercised Options: $120,095,658
Current Obligation: $118,743,311
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $13,001,111
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0029
IDV Type: BOA
Timeline
Start Date: 2019-07-02
Current End Date: 2026-07-26
Potential End Date: 2026-07-26 00:00:00
Last Modified: 2025-08-26
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