DoD Awards $135M Lockheed Martin Contract for DMS Redesigns, Lacking Competition
Contract Overview
Contract Amount: $134,877,517 ($134.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-25
End Date: 2028-01-31
Contract Duration: 2,684 days
Daily Burn Rate: $50.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LOT 12 DMS REDESIGNS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76101
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $134.9 million to LOCKHEED MARTIN CORPORATION for work described as: LOT 12 DMS REDESIGNS Key points: 1. Significant contract value of $135M awarded to a single large corporation. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. The contract is for Aircraft Manufacturing, a critical defense sector. 4. Awarded as a Delivery Order under a larger contract, details on initial competition are unclear.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult.
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 is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for a $135M contract means taxpayers may be paying more than necessary for the aircraft manufacturing services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation in aircraft design and manufacturing processes. Dependence on a single contractor for critical defense systems. Limited transparency into the justification for a sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on justification
Positive Signals
- Supports critical defense manufacturing
- Long-term contract duration
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is a significant area of defense spending. Benchmarks for similar sole-source contracts are often higher due to the lack of competitive pressure.
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 award, which is common for large sole-source contracts.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Defense Contract Management Agency is responsible for oversight.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited innovation incentive
- Sole-source dependency
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $134.9 million to LOCKHEED MARTIN CORPORATION. LOT 12 DMS REDESIGNS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $134.9 million.
What is the period of performance?
Start: 2020-09-25. End: 2028-01-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as a critical need, lack of qualified sources, or urgency. Without this information, it's impossible to assess if alternative competitive strategies were adequately explored or if the sole-source decision was truly warranted.
How does the cost-plus-fixed-fee structure impact the potential for cost overruns and the government's ability to control expenses?
Cost-plus-fixed-fee contracts reimburse the contractor for allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can escalate if actual costs are higher than anticipated. This structure places a greater burden on the government to meticulously audit costs and ensure they are reasonable and allocable to the contract to prevent overspending.
What are the long-term implications of awarding a $135M contract without competition for the Department of Defense's aircraft manufacturing capabilities?
Awarding such a significant contract without competition can stifle innovation by reducing the incentive for other companies to develop competing technologies or processes. It also increases reliance on a single provider, potentially creating vulnerabilities. Over time, this can lead to higher sustainment costs and a less robust industrial base for critical defense assets.
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
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: $134,877,517
Exercised Options: $134,877,517
Current Obligation: $134,877,517
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: 2020-09-25
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 00:00:00
Last Modified: 2025-04-17
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