DoD Awards $176.5M for Heavy HMDS Parts to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $176,543,906 ($176.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-09-25
End Date: 2024-12-31
Contract Duration: 1,924 days
Daily Burn Rate: $91.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOTS 12 AND 13 GEN 3 HEAVY HMDS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $176.5 million to LOCKHEED MARTIN CORPORATION for work described as: LOTS 12 AND 13 GEN 3 HEAVY HMDS Key points: 1. Significant contract value of $176.5 million awarded. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Contract duration extends to December 2024, indicating long-term need. 4. Focus on 'Other Aircraft Parts' suggests specialized, potentially high-cost components.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar sole-source awards for specialized aircraft parts would be necessary for a thorough evaluation.
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 taxpayers as there was no market pressure to drive down prices.
Taxpayer Impact: The lack of competition in this large award means taxpayers may be paying a premium for these heavy HMDS parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Dependence on a single supplier could create supply chain vulnerabilities. Lack of transparency in pricing may hinder public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- High contract value
Positive Signals
- Essential equipment for the Department of the Navy
- Firms fixed price contract type can offer cost certainty
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is often characterized by specialized components and long development cycles, with significant government investment.
Small Business Impact
This award went to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and necessity. Transparency regarding the justification for not competing the contract 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 competition
- Potential for inflated pricing
- Long-term contract duration
- High total contract value
- Supply chain dependency on a single vendor
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $176.5 million to LOCKHEED MARTIN CORPORATION. LOTS 12 AND 13 GEN 3 HEAVY HMDS
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 $176.5 million.
What is the period of performance?
Start: 2019-09-25. End: 2024-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the best possible price was obtained?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. Agencies must still conduct market research and negotiate aggressively to secure the best value, even without competing bids. Documentation of these efforts is critical for accountability.
How does the per-unit cost of these heavy HMDS parts compare to industry benchmarks or previous contracts for similar items?
Without access to specific unit cost data and comparable industry benchmarks, it is challenging to definitively assess the value. However, given the sole-source nature, there is a heightened risk that the per-unit cost may be higher than if the contract had been competitively awarded. Further analysis would require detailed cost breakdowns and market comparisons.
What is the potential impact on operational readiness if there are disruptions in the supply chain for these critical HMDS parts from Lockheed Martin?
Disruptions to the supply chain for critical components like these heavy HMDS parts could significantly impact the operational readiness of naval assets. A sole-source contract exacerbates this risk, as there are limited alternative suppliers. Contingency planning and robust inventory management are essential to mitigate these potential readiness impacts.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD BLDG 10, 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: $176,543,906
Exercised Options: $176,543,906
Current Obligation: $176,543,906
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $23,239,556
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919D0015
IDV Type: IDC
Timeline
Start Date: 2019-09-25
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-10-01
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