DoD Awards $77.5M Fielding Contract to Lockheed Martin for Aircraft Manufacturing
Contract Overview
Contract Amount: $77,463,590 ($77.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-08-05
End Date: 2025-12-31
Contract Duration: 1,974 days
Daily Burn Rate: $39.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 30P05 FIELDING
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $77.5 million to LOCKHEED MARTIN CORPORATION for work described as: 30P05 FIELDING Key points: 1. Significant contract value for aircraft manufacturing services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (1974 days) may indicate complex or ongoing needs. 4. Focus on fielding suggests post-production support or deployment activities.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without comparable contracts, it's difficult to assess if the $77.5 million price is reasonable for the scope of work.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract could impact budget predictability for the Navy. Dependence on a single contractor for fielding services might pose supply chain or operational risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical Department of the Navy operations
- Long-term engagement ensures continuity of service
Sector Analysis
The aircraft manufacturing sector, particularly for defense applications, involves complex supply chains and high-value components. Spending benchmarks are highly variable based on aircraft type and scope of work.
Small Business Impact
This contract does not appear to involve small businesses as prime contractors, as Lockheed Martin is a large corporation. Subcontracting opportunities for small businesses are not detailed in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. The Department of the Navy should document the justification for not competing this requirement.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for inflated costs due to sole-source award.
- Cost-plus contract type can lead to cost overruns.
- Lack of transparency regarding competition justification.
- Long contract duration may not reflect current market conditions.
- Limited visibility into small business participation.
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.5 million to LOCKHEED MARTIN CORPORATION. 30P05 FIELDING
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 $77.5 million.
What is the period of performance?
Start: 2020-08-05. End: 2025-12-31.
What is the specific justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of adequate competition. Without further documentation from the Department of the Navy, it is impossible to determine the precise rationale. This lack of transparency hinders a full assessment of the procurement's value and necessity.
How does the Cost Plus Fixed Fee structure mitigate risks for the government in this specific aircraft fielding contract?
A Cost Plus Fixed Fee (CPFF) contract aims to control costs by setting a fixed fee for the contractor's profit, regardless of the actual costs incurred. However, the government bears the risk of cost overruns. Effective oversight is crucial to ensure costs remain reasonable and that the contractor is incentivized to manage expenses efficiently.
What performance metrics and deliverables are in place to ensure the effectiveness of Lockheed Martin's fielding services over the contract's duration?
The provided data does not specify performance metrics or deliverables. Effective contract management requires clear, measurable objectives related to the fielding process, such as timeliness, quality of integration, and operational readiness. The Department of the Navy must have robust mechanisms to track and evaluate the contractor's performance against these standards.
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: N0001920R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $77,463,590
Exercised Options: $77,463,590
Current Obligation: $77,463,590
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $35,442,817
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0008
IDV Type: BOA
Timeline
Start Date: 2020-08-05
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-05-06
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