DoD awards $35.2M for DMAD Phase I Integration to Lockheed Martin, raising concerns about competition
Contract Overview
Contract Amount: $35,209,454 ($35.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-11
End Date: 2023-09-11
Contract Duration: 1,095 days
Daily Burn Rate: $32.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DMAD PHASE I INTEGRATION
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $35.2 million to LOCKHEED MARTIN CORPORATION for work described as: DMAD PHASE I INTEGRATION Key points: 1. Significant contract value of $35.2 million awarded. 2. Sole-source award to Lockheed Martin limits competitive pricing. 3. Potential risk due to lack of competition and extended duration. 4. Contract falls under 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The $35.2 million award for DMAD Phase I Integration lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, assessing if the price is optimal is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for the DMAD Phase I Integration services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of the Navy is relying on a single contractor, potentially missing out on innovative solutions. Long-term implications for future sole-source awards in this category need consideration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Extended contract duration
Positive Signals
- Award to established contractor
- Clear contract scope (DMAD Phase I Integration)
Sector Analysis
The contract is in the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely, but sole-source awards warrant scrutiny to ensure fair pricing.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award suggests limited initial oversight on price competitiveness. Further review of the justification for sole-source procurement is recommended.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bids.
- Extended contract duration (1095 days) increases long-term risk.
- No small business participation noted.
- Lack of transparency in price discovery.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.2 million to LOCKHEED MARTIN CORPORATION. DMAD PHASE I INTEGRATION
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 $35.2 million.
What is the period of performance?
Start: 2020-09-11. End: 2023-09-11.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's difficult to ascertain the precise reason, but it warrants investigation to ensure it was a valid exception to full and open competition.
What are the potential risks associated with this sole-source award for future procurements?
Sole-source awards can set a precedent, potentially discouraging competition in future related procurements. It may lead contractors to expect similar treatment, reducing the incentive to compete aggressively. Furthermore, the government might miss out on cost savings and innovative solutions that a competitive process could uncover, impacting overall program efficiency and value.
How can the Department of Defense ensure better value and effectiveness in future sole-source awards?
To ensure better value and effectiveness, the DoD should rigorously review and document the justification for sole-source awards, ensuring it meets strict criteria. Implementing robust market research even for sole-source situations can help identify potential competitors. Additionally, negotiating firm fixed prices with clear performance metrics and incorporating incentives for cost savings can drive better outcomes.
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: 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: $35,259,454
Exercised Options: $35,259,454
Current Obligation: $35,209,454
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $25,953,759
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: 2020-09-11
Current End Date: 2023-09-11
Potential End Date: 2023-09-11 00:00:00
Last Modified: 2025-12-11
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