DoD Awards $17.8M for Missile Parts to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $17,842,291 ($17.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-03-23
End Date: 2025-01-31
Contract Duration: 1,410 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CAPABILITY BUILD
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $17.8 million to LOCKHEED MARTIN CORPORATION for work described as: CAPABILITY BUILD Key points: 1. Significant contract awarded to a single, large defense contractor. 2. Lack of competition raises concerns about price discovery and value. 3. Contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 4. Focus on missile parts suggests a critical defense capability build.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a lack of competition, makes it difficult to assess value. Without benchmarks or competitive bids, it's hard to determine if $17.8M is a fair price for the guided missile parts and auxiliary equipment.
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 may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The absence of competition for this $17.8M contract means taxpayers may be paying a premium for these missile parts.
Public Impact
Ensures continued supply of critical missile components for the Navy. Supports a major defense contractor, potentially impacting jobs in Pennsylvania. Highlights reliance on established contractors for specialized defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Supports critical defense capability
- Award to established prime contractor
Sector Analysis
This contract falls within the defense sector, specifically manufacturing parts for guided missiles and space vehicles. Spending in this area is often driven by national security needs, which can sometimes lead to less emphasis on competitive pricing.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors in this specific award, nor is there a stated set-aside for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests limited transparency in the procurement process. Further oversight would be needed to understand the justification for the sole-source award and ensure fair pricing.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in justification
- Potential for cost escalation
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.8 million to LOCKHEED MARTIN CORPORATION. CAPABILITY BUILD
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 $17.8 million.
What is the period of performance?
Start: 2021-03-23. End: 2025-01-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without further details from the Department of Defense, it's difficult to ascertain the specific reasons. However, sole-source contracts often bypass competitive bidding, potentially leading to higher costs and reduced transparency for taxpayers.
What are the risks associated with a Cost Plus Fixed Fee contract for missile parts?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, particularly for complex items like missile parts. The government agrees to pay the contractor's actual costs plus a fixed fee. This can incentivize contractors to incur higher costs, as their fee remains constant, potentially leading to budget overruns and reduced value for the government if not closely monitored.
How does this contract contribute to the overall effectiveness of the Navy's missile systems?
This contract directly supports the 'CAPABILITY BUILD' for the Department of the Navy, specifically for guided missile and space vehicle parts. Ensuring a steady supply of these components is crucial for maintaining and enhancing the operational readiness and effectiveness of the Navy's missile systems, thereby supporting national defense objectives.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001920R0005
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,530,740
Exercised Options: $18,530,740
Current Obligation: $17,842,291
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $541,610
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920D0017
IDV Type: IDC
Timeline
Start Date: 2021-03-23
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2025-09-09
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