DoD Awards $37.8M for SC2X Integration to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $37,780,631 ($37.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-09
End Date: 2026-03-17
Contract Duration: 1,712 days
Daily Burn Rate: $22.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SC2X INTEGRATION
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $37.8 million to LOCKHEED MARTIN CORPORATION for work described as: SC2X INTEGRATION Key points: 1. Significant award to a single, large defense contractor. 2. Lack of competition raises concerns about price discovery. 3. Long-term contract duration (over 4 years) warrants close monitoring. 4. Sector is Other Aircraft Parts Manufacturing, a critical defense component.
Value Assessment
Rating: questionable
The award amount of $37.8M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar integration contracts. Benchmarking against other sole-source awards in this specific sub-sector would be necessary for a more definitive valuation.
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 potentially leads to higher costs for the government as there is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the SC2X integration services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially inflated prices. Dependence on a single contractor for critical integration services. Potential for reduced innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Award to established contractor
- Supports critical defense capability
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is vital for national defense. Spending in this area is often characterized by high technical requirements and specialized contractors, but competitive practices are crucial to manage costs effectively.
Small Business Impact
The awardee is Lockheed Martin Corporation, a major defense contractor. There is no indication that small businesses were involved in this specific contract, either as prime or subcontractors, which is common for large, sole-source defense procurements.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure the contractor is meeting all performance requirements and that costs remain justifiable throughout the contract's life.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source procurement
- Potential for inflated pricing
- Lack of competitive pressure for innovation
- Long contract duration increases risk exposure
- Limited visibility into cost drivers
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 $37.8 million to LOCKHEED MARTIN CORPORATION. SC2X 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 $37.8 million.
What is the period of performance?
Start: 2021-07-09. End: 2026-03-17.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. The contracting agency should have conducted a thorough price analysis, potentially using historical data, cost breakdowns, or independent government cost estimates, to ensure the price paid is fair and reasonable despite the absence of competition.
What are the risks associated with a long-term, sole-source contract for aircraft parts integration?
Risks include potential cost overruns if market prices decrease, reduced incentive for the contractor to innovate or improve efficiency, and a lack of flexibility if requirements change. There's also the risk of vendor lock-in, making it difficult and costly to switch providers in the future.
How does this contract contribute to the overall effectiveness of the Department of the Navy's aircraft systems?
This contract likely supports the integration of specific systems or technologies into the Navy's aircraft fleet, aiming to enhance operational capabilities, maintain readiness, or introduce new functionalities. The effectiveness hinges on the successful integration and the reliability of the SC2X system within the broader aviation platform.
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: $38,036,631
Exercised Options: $38,036,631
Current Obligation: $37,780,631
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $597,209
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: 2021-07-09
Current End Date: 2026-03-17
Potential End Date: 2026-03-17 00:00:00
Last Modified: 2025-12-23
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