DoD Awards $38.8M Aircraft Manufacturing Contract to Lockheed Martin, Sole-Sourced
Contract Overview
Contract Amount: $38,837,168 ($38.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-13
End Date: 2026-09-30
Contract Duration: 1,905 days
Daily Burn Rate: $20.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INTEGRATION ACTIVITIES
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76106
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $38.8 million to LOCKHEED MARTIN CORPORATION for work described as: INTEGRATION ACTIVITIES Key points: 1. Significant contract value of $38.8 million for aircraft manufacturing. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Potential risk associated with a single-bidder scenario. 4. Spending concentrated in the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: questionable
The contract's value of $38.8 million for aircraft manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these aircraft manufacturing integration activities.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on Lockheed Martin for critical aircraft manufacturing. Future defense spending could be influenced by the precedent set by this sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- High contract value
Positive Signals
- Contract awarded to established defense contractor
- Clear end date for contract performance
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending benchmarks in this area are often high due to the complexity and specialized nature of the products, but competitive bidding is crucial for cost efficiency.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific sole-source award, limiting their opportunities.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is obtaining fair value and that such awards are justified and not a pattern.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- High contract value increases financial risk.
- Lack of transparency regarding justification for sole-sourcing.
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.8 million to LOCKHEED MARTIN CORPORATION. INTEGRATION ACTIVITIES
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 $38.8 million.
What is the period of performance?
Start: 2021-07-13. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details, it's impossible to definitively assess the validity of this justification. However, sole-source contracts inherently reduce competitive pressure, potentially leading to higher costs and less innovation compared to fully competed contracts.
What are the risks associated with a sole-source contract of this magnitude?
The primary risk of a sole-source contract, especially one valued at $38.8 million, is the potential for inflated pricing due to the absence of competitive pressure. There's also a risk of reduced innovation and a lack of vendor accountability if the government becomes overly reliant on a single supplier without robust performance monitoring.
How does this contract contribute to the Department of the Navy's overall mission effectiveness?
This contract supports 'INTEGRATION ACTIVITIES' within aircraft manufacturing for the Department of the Navy. While the specific activities are not detailed, such integration is crucial for ensuring aircraft are operational and meet mission requirements. The effectiveness hinges on the successful execution by Lockheed Martin and the alignment with the Navy's strategic aviation goals.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
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: $40,360,898
Exercised Options: $40,360,898
Current Obligation: $38,837,168
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $6,046,758
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-07-13
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-09-16
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