DoD's $34.7M Lockheed Martin Contract for Air Transportation Support Faces Limited Competition
Contract Overview
Contract Amount: $34,758,390 ($34.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-01
End Date: 2023-06-30
Contract Duration: 910 days
Daily Burn Rate: $38.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROGRAM, MAINTENANCE AND LOGISTICS - 2021 COVERAGE
Plain-Language Summary
Department of Defense obligated $34.8 million to LOCKHEED MARTIN CORPORATION for work described as: PROGRAM, MAINTENANCE AND LOGISTICS - 2021 COVERAGE Key points: 1. Significant contract value of $34.7 million awarded to a single vendor. 2. Limited competition raises concerns about potential overpricing and reduced innovation. 3. The contract supports air transportation logistics, a critical but potentially high-cost area. 4. Sector context suggests a need for robust oversight to ensure value for taxpayer money.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without available benchmarks. Given the limited competition and firm fixed-price structure, there's a risk that the pricing may not reflect the most cost-effective options available in the market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This lack of competitive bidding can hinder price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The absence of full and open competition for a $34.7 million contract raises concerns about the efficient use of taxpayer funds, as a more competitive process could have yielded better pricing.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Department of the Navy relies on this contract for essential air transportation support. Potential for reduced service quality or innovation if competition is stifled.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmarks
- Potential for cost overruns
Positive Signals
- Firm fixed-price contract structure
- Supports critical defense operations
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation,' a sector often characterized by specialized services and potential for sole-source awards. Benchmarks for similar support contracts are crucial for evaluating cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this contract, suggesting a missed opportunity for small business participation and economic development.
Oversight & Accountability
The limited competition necessitates strong oversight from the Department of the Navy to ensure the contractor is delivering services efficiently and at a fair price, despite the lack of a competitive bidding process.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of full and open competition
- Potential for inflated pricing
- Absence of readily available cost benchmarks
- Limited transparency on justification for limited competition
Tags
other-support-activities-for-air-transpo, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.8 million to LOCKHEED MARTIN CORPORATION. PROGRAM, MAINTENANCE AND LOGISTICS - 2021 COVERAGE
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 $34.8 million.
What is the period of performance?
Start: 2021-01-01. End: 2023-06-30.
What specific factors prevented this contract from being competed more broadly, and what steps are being taken to ensure fair pricing?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' Further investigation would be needed to determine the specific reasons, such as unique capabilities or urgent needs. To ensure fair pricing, the Department of Defense should conduct thorough cost analyses and market research, even in limited competition scenarios, to validate the contractor's proposed costs against industry standards.
How does the $34.7 million expenditure compare to industry benchmarks for similar air transportation support services?
Without specific industry benchmarks for this niche service, a direct comparison is challenging. However, the lack of competition suggests a potential for inflated costs. A detailed cost breakdown and comparison with publicly available data for comparable services, if obtainable, would be necessary to assess value for money.
What is the long-term strategy for ensuring competitive sourcing of air transportation support to avoid recurring limited competition awards?
The Department of Defense should proactively identify opportunities for future competition by breaking down large contracts into smaller, more manageable components or by fostering the development of new market entrants. Regular market research and strategic sourcing initiatives are essential to promote a more competitive landscape for these critical support services.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $34,758,390
Exercised Options: $34,758,390
Current Obligation: $34,758,390
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920D0001
IDV Type: IDC
Timeline
Start Date: 2021-01-01
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2023-10-20
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