DoD awards $18.7M for Aircraft Tooling to Lockheed Martin, with no competition
Contract Overview
Contract Amount: $18,701,038 ($18.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-06-11
End Date: 2026-03-29
Contract Duration: 1,752 days
Daily Burn Rate: $10.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TOOLING PROCUREMENT 2, FY21-FY23 TOOLING (LOT 5-6)
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $18.7 million to LOCKHEED MARTIN CORPORATION for work described as: TOOLING PROCUREMENT 2, FY21-FY23 TOOLING (LOT 5-6) Key points: 1. Significant award to a single large contractor, Lockheed Martin. 2. Procurement is for tooling related to aircraft parts manufacturing. 3. No competition was cited, raising potential value concerns. 4. Long contract duration of nearly 5 years. 5. Firm Fixed Price contract type offers cost certainty.
Value Assessment
Rating: questionable
The award amount of $18.7 million for tooling is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar specialized tooling.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have led to a higher price than could have been achieved through a competitive process.
Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for the required tooling.
Public Impact
Impacts the defense industrial base by supporting a major prime contractor. Ensures availability of specialized tooling for aircraft part manufacturing. Potential for higher costs due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Firm Fixed Price contract
- Supports critical defense manufacturing
Sector Analysis
This procurement falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending in this area is often characterized by high R&D costs and specialized manufacturing requirements, sometimes leading to limited competition.
Small Business Impact
The data indicates this award went to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific procurement, either as prime or subcontractors.
Oversight & Accountability
As a sole-source award, this contract warrants close oversight to ensure fair pricing and adherence to contract terms. The Department of the Navy is responsible for managing this delivery order.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Potential for overpricing
- Lack of transparency in justification
- Long contract duration
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.7 million to LOCKHEED MARTIN CORPORATION. TOOLING PROCUREMENT 2, FY21-FY23 TOOLING (LOT 5-6)
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 $18.7 million.
What is the period of performance?
Start: 2021-06-11. End: 2026-03-29.
What justification was provided for not competing this tooling procurement?
The provided data does not specify the justification for not competing this award. Typically, sole-source procurements require a detailed justification, such as the existence of a unique capability or a critical need that cannot be met by other sources within the required timeframe. Further investigation into the contract file would be necessary to determine the specific rationale.
What is the risk associated with a sole-source tooling award of this magnitude?
The primary risk is paying a non-competitive price, potentially exceeding fair market value. There's also a risk of reduced innovation and less incentive for the contractor to optimize costs or delivery schedules. Without competition, oversight becomes crucial to ensure value for taxpayer money and prevent potential overruns or quality issues.
How does this tooling procurement contribute to overall aircraft readiness and effectiveness?
This procurement provides essential tooling required for the manufacturing or maintenance of aircraft parts. Having the correct and readily available tooling is critical for ensuring the quality, consistency, and timely production of components, which directly impacts the overall readiness and effectiveness of the aircraft fleet. It supports the sustainment and operational capability of defense assets.
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: $18,701,038
Exercised Options: $18,701,038
Current Obligation: $18,701,038
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,978,798
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: 2021-06-11
Current End Date: 2026-03-29
Potential End Date: 2026-03-29 00:00:00
Last Modified: 2025-08-26
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)