DoD Awards $65.5M for Bahrain/Czech Republic TSS NRE to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $65,455,848 ($65.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-10-28
End Date: 2027-11-30
Contract Duration: 2,589 days
Daily Burn Rate: $25.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BAHRAIN AND CZECH REPUBLIC TSS NRE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $65.5 million to LOCKHEED MARTIN CORPORATION for work described as: BAHRAIN AND CZECH REPUBLIC TSS NRE Key points: 1. Significant contract value for non-recurring engineering services. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long performance period (2020-2027) suggests complex or ongoing needs. 4. Focus on aircraft parts and auxiliary equipment manufacturing.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Without competitive benchmarking, 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 compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these services, impacting taxpayer funds.
Public Impact
Potential for increased costs due to sole-source nature. Impact on foreign military sales or international cooperation programs. Long-term commitment to a single contractor for critical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long performance duration
- Lack of small business participation
Positive Signals
- Supports critical defense needs for allies
- Established contractor with relevant expertise
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is often driven by defense modernization and sustainment needs, with significant investment typically seen in large prime contractors.
Small Business Impact
The data indicates no small business participation in this contract. This is common for large, sole-source awards to major defense contractors, but it represents a missed opportunity for small business growth.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Department of the Navy should provide justification for the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Cost-plus contract type poses cost control risks.
- Long performance period may indicate potential for scope creep.
- No small business participation.
- Lack of transparency in pricing due to sole-sourcing.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.5 million to LOCKHEED MARTIN CORPORATION. BAHRAIN AND CZECH REPUBLIC TSS NRE
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 $65.5 million.
What is the period of performance?
Start: 2020-10-28. End: 2027-11-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent requirements that only one contractor can meet. The Department of Defense should have conducted a price analysis, potentially using historical data or independent cost estimates, to ensure the pricing was fair and reasonable despite the lack of competition.
What are the specific risks associated with a Cost Plus Fixed Fee contract for non-recurring engineering, especially in a sole-source context?
Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, especially when the fee is a percentage of costs. In a sole-source scenario, the government lacks the leverage of competition to control these costs, increasing the risk of budget overruns and reduced value for taxpayer money.
How does this contract contribute to the overall effectiveness of the Department of Defense's foreign military sales or international cooperation efforts?
This contract likely supports the sustainment or enhancement of defense systems provided to Bahrain and the Czech Republic. Its effectiveness is tied to ensuring these allies have the necessary technical support for critical platforms, thereby strengthening regional security and interoperability with U.S. forces.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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
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: $65,455,848
Exercised Options: $65,455,848
Current Obligation: $65,455,848
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $83,475,411
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001919G0029
IDV Type: BOA
Timeline
Start Date: 2020-10-28
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-12-18
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