DoD awards $144M for FY20 spares and support labor to Lockheed Martin, a sole-source contract
Contract Overview
Contract Amount: $144,286,255 ($144.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-15
End Date: 2026-12-31
Contract Duration: 2,298 days
Daily Burn Rate: $62.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY20 PHASE 1-2 SPARES AND SUPPORT LABOR
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $144.3 million to LOCKHEED MARTIN CORPORATION for work described as: FY20 PHASE 1-2 SPARES AND SUPPORT LABOR Key points: 1. Significant contract value of $144.3M for aircraft spares and support. 2. Sole-source award to Lockheed Martin raises concerns about price competition. 3. Long contract duration (2020-2026) may impact future pricing flexibility. 4. Contract falls under the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract is a sole-source award, making direct price comparisons difficult. Without competition, it's challenging to assess if the $144.3M price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these spares and support services.
Public Impact
Ensures continued operational readiness for naval aircraft by providing essential spare parts. Supports critical maintenance and repair functions, contributing to fleet availability. Potential for cost overruns due to sole-source nature impacts taxpayer funds. Long-term commitment may lock the DoD into specific vendor solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures availability of critical spares
- Supports fleet readiness
Sector Analysis
This contract is within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation capabilities, but competitive sourcing is key to cost efficiency.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, potentially missing opportunities for their participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Robust justification for the lack of competition should be readily available.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Long contract duration (over 6 years)
- 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 $144.3 million to LOCKHEED MARTIN CORPORATION. FY20 PHASE 1-2 SPARES AND SUPPORT 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 $144.3 million.
What is the period of performance?
Start: 2020-09-15. End: 2026-12-31.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without access to the specific justification documentation, it's impossible to definitively assess its validity. However, sole-source contracts inherently bypass the price discovery mechanisms inherent in competitive bidding, raising concerns about potential cost inefficiencies.
What are the potential risks associated with the long contract duration and sole-source nature of this award?
The primary risks include inflated pricing due to lack of competition, potential for vendor lock-in, and reduced flexibility for the government to adapt to changing technological needs or market conditions. Over the 6-year period, the absence of competitive pressure could lead to significant cost overruns compared to a competitively sourced contract, impacting overall defense budget efficiency.
How does this contract contribute to the overall effectiveness of naval aviation operations?
This contract is vital for ensuring the operational readiness and effectiveness of naval aviation by providing necessary spare parts and support labor. Consistent availability of these components directly impacts aircraft maintenance schedules, flight hours, and the overall mission capability of naval fleets. The long-term nature of the award suggests a strategic commitment to sustaining these critical assets.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $144,286,255
Exercised Options: $144,286,255
Current Obligation: $144,286,255
Subaward Activity
Number of Subawards: 569
Total Subaward Amount: $5,559,636,398
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: 2020-09-15
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-01
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)