DoD awards $42.8M for ODIN BASE KIT to Lockheed Martin, a sole-source contract
Contract Overview
Contract Amount: $42,786,104 ($42.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-08-14
End Date: 2026-01-30
Contract Duration: 1,995 days
Daily Burn Rate: $21.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ODIN BASE KIT (DEPLOYMENT) CY 2020
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $42.8 million to LOCKHEED MARTIN CORPORATION for work described as: ODIN BASE KIT (DEPLOYMENT) CY 2020 Key points: 1. Contract awarded to a single, large defense contractor. 2. No competition was sought for this significant award. 3. Potential for higher costs due to lack of competitive bidding. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure with no competition raises concerns about value for money. Benchmarking against similar sole-source aircraft component contracts is difficult without more data, but the lack of competition suggests a risk of inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and can lead to less favorable terms for the government compared to competitive processes.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure to reduce prices.
Public Impact
Military readiness may be impacted by the availability and cost of this critical kit. Taxpayer funds are allocated without competitive assurance of best value. Dependence on a single supplier could create supply chain vulnerabilities.
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
- Award to established defense contractor
- Supports military operations
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically for an 'ODIN BASE KIT (DEPLOYMENT)'. Spending in this sector can be substantial, driven by defense needs and technological advancements. Benchmarks for similar specialized kits are often proprietary or difficult to ascertain due to unique requirements.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct impact on the small business sector for this procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. Accountability for the fixed fee and overall cost control will be critical throughout the contract's duration.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Cost-plus contract type may lead to higher costs.
- Limited transparency on pricing justification.
- Potential for vendor lock-in.
- Long contract duration increases risk exposure.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to LOCKHEED MARTIN CORPORATION. ODIN BASE KIT (DEPLOYMENT) CY 2020
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 $42.8 million.
What is the period of performance?
Start: 2020-08-14. End: 2026-01-30.
What specific justification was provided for the sole-source award of the ODIN BASE KIT, and how does it align with federal procurement regulations for non-competitive procurements?
Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would need to detail why competition was not feasible or advantageous, potentially citing unique capabilities, proprietary technology, or urgent needs. Without access to the specific justification document, it's impossible to verify its adequacy or compliance.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs and ensure value for money on this sole-source contract?
Cost-plus-fixed-fee (CPFF) contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can vary. On a sole-source contract, this structure can incentivize cost overruns as the contractor is guaranteed their fee regardless of the final cost. Robust government oversight is crucial to scrutinize costs and ensure they are reasonable and allocable.
What are the potential risks associated with a long-duration, sole-source contract for critical military equipment like the ODIN BASE KIT?
Risks include potential price escalation over the contract's life, reduced innovation due to lack of competitive pressure, and vendor lock-in, making it difficult to switch suppliers or adopt newer technologies. There's also a risk of complacency from the contractor regarding performance and cost control. The extended duration (ending 2026) amplifies these concerns.
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
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: $44,717,006
Exercised Options: $44,717,006
Current Obligation: $42,786,104
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $1,422,907
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920D0007
IDV Type: IDC
Timeline
Start Date: 2020-08-14
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-09-22
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