DoD Awards $24.7M Aircraft Manufacturing Contract to Lockheed Martin, Sole-Source
Contract Overview
Contract Amount: $24,680,831 ($24.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2026-04-30
Contract Duration: 1,675 days
Daily Burn Rate: $14.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DESIGN AND QUALIFICATION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76101
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to LOCKHEED MARTIN CORPORATION for work described as: DESIGN AND QUALIFICATION Key points: 1. Significant contract value for aircraft manufacturing services. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on aircraft manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarking, it's difficult to assess if the fixed fee is reasonable.
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 result in a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds may be used less efficiently due to the absence of competitive pressure on pricing.
Public Impact
Taxpayers may be paying a premium for aircraft manufacturing due to the sole-source nature of this award. The Department of the Navy is relying on a single contractor, potentially limiting options for future procurements. This contract supports the defense industrial base, specifically aircraft manufacturing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical defense capability
- Long-term contract duration
Sector Analysis
This contract falls within the aircraft manufacturing sector, a critical component of the defense industry. Spending in this sector is often characterized by high R&D costs and specialized production capabilities.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this sole-source award to a large corporation like Lockheed Martin.
Oversight & Accountability
Oversight will be crucial to ensure cost control and performance under this Cost Plus Fixed Fee contract, especially given the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type increases risk of cost overruns.
- Lack of transparency in pricing due to no-bid nature.
- Potential for reduced innovation without competitive pressure.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to LOCKHEED MARTIN CORPORATION. DESIGN AND QUALIFICATION
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 $24.7 million.
What is the period of performance?
Start: 2021-09-28. End: 2026-04-30.
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 adequate competition. Without further details, it's impossible to ascertain the specific rationale, but it warrants scrutiny to ensure it aligns with procurement regulations and serves the best interest of the government.
How will the government ensure cost-effectiveness and prevent overruns in this Cost Plus Fixed Fee contract?
Effective oversight, robust auditing, and clear performance metrics are essential. The contracting officer must diligently monitor costs, ensure the fixed fee remains reasonable, and verify that the contractor is meeting all performance requirements. Regular reviews and communication are key to managing risks associated with this contract type.
What is the long-term strategic impact of awarding aircraft manufacturing contracts solely to large prime contractors?
Sole-source awards to large prime contractors can consolidate market power and potentially stifle innovation or competition from smaller, specialized firms. While ensuring capability, it may limit future sourcing options and potentially increase long-term costs if competitive pressures are consistently absent from the supply chain.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: 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: $24,680,831
Exercised Options: $24,680,831
Current Obligation: $24,680,831
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0008
IDV Type: BOA
Timeline
Start Date: 2021-09-28
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2024-12-23
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