Lockheed Martin awarded $156.8M contract for BLADE ASSEMBLY, MAIN, with delivery through late 2026

Contract Overview

Contract Amount: $156,840,061 ($156.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-08-31

End Date: 2026-12-31

Contract Duration: 1,948 days

Daily Burn Rate: $80.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLADE ASSEMBLY,MAIN

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $156.8 million to LOCKHEED MARTIN CORPORATION for work described as: BLADE ASSEMBLY,MAIN Key points: 1. The contract's value suggests a significant need for specialized aircraft components. 2. The fixed-price nature of the contract shifts some risk to the contractor. 3. A long performance period indicates a sustained requirement for these assemblies. 4. The absence of competition raises questions about potential cost efficiencies. 5. This award falls within the broader aerospace and defense manufacturing sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific BLADE ASSEMBLY, MAIN contract is challenging without detailed specifications and market data for comparable assemblies. However, the total award amount of over $156 million for a single component type over a five-year period suggests a high unit cost or a very large quantity. The firm fixed-price structure is generally favorable for the government in controlling costs, but the lack of competition means there's no direct market comparison to assess if the price is optimal. Further analysis would require understanding the complexity and technological sophistication of the blade assembly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin Corporation, was considered. The justification for sole-source procurement typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without a competitive bidding process, it is difficult to ascertain the full range of potential suppliers or the pricing that might have emerged from an open market. This approach can lead to higher costs for the government compared to a competed contract.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market. The government is reliant on the awarded contractor's pricing without the pressure of competing bids to drive down costs.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense branches relying on the specific aircraft for which these blade assemblies are intended. The services delivered are the manufacturing and supply of critical main blade assemblies for aircraft. The geographic impact is primarily within the United States, where Lockheed Martin operates and where the Navy's aviation assets are deployed. Workforce implications include skilled manufacturing jobs within Lockheed Martin's facilities and potentially its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Long contract duration could mask inefficiencies if not closely monitored.
Reliance on a single source for critical components poses supply chain risk.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a major defense contractor suggests established manufacturing capabilities.
Long-term award indicates a stable, ongoing need for the component.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft components. The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' encompasses this type of specialized production. The market for such components is often characterized by high barriers to entry due to technological complexity, stringent quality requirements, and long development cycles. Spending in this sector is heavily influenced by defense budgets and geopolitical factors. Comparable spending benchmarks would typically involve analyzing other sole-source or competed contracts for similar high-value aircraft parts within the DoD.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Lockheed Martin Corporation, is a large aerospace and defense company. While there is no direct set-aside, large prime contractors are often required to subcontract a certain percentage of their work to small businesses. The extent to which small businesses will benefit from this contract will depend on Lockheed Martin's subcontracting plan and its adherence to small business goals. Without specific subcontracting data, the direct impact on the small business ecosystem remains uncertain, though it's likely to be indirect through the prime's supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded in the contract terms, including delivery schedules, quality standards, and performance metrics. Transparency is often limited in sole-source procurements, but contract award data is generally made public through systems like SAM.gov. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Aircraft Procurement
Naval Aviation Support Contracts
Aerospace Component Manufacturing
Lockheed Martin Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration requires ongoing oversight.
Critical component reliance on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $156.8 million to LOCKHEED MARTIN CORPORATION. BLADE ASSEMBLY,MAIN

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 $156.8 million.

What is the period of performance?

Start: 2021-08-31. End: 2026-12-31.

What is the specific aircraft platform or program this BLADE ASSEMBLY, MAIN is intended for, and what is the criticality of this component to the platform's operation?

The provided data does not specify the exact aircraft platform or program for which the BLADE ASSEMBLY, MAIN is intended. This information is crucial for understanding the component's criticality and the justification for a sole-source award. Main blade assemblies are fundamental to the operation of rotorcraft (helicopters) and potentially other types of aircraft. Their failure can lead to catastrophic loss of the aircraft. The criticality implies a high degree of engineering, testing, and quality control, which can contribute to higher costs and limited supplier options. Without knowing the specific platform, it's difficult to assess if alternative suppliers could be qualified or if the current sole-source arrangement is indeed the only viable option.

What is the historical spending pattern for this specific BLADE ASSEMBLY, MAIN or similar components by the Department of the Navy?

The provided data only includes details for a single contract award valued at $156,840,061 with an end date of December 31, 2026. It does not offer historical spending data for this specific part number or similar components. To analyze historical spending patterns, one would need to query federal procurement databases (like SAM.gov or FPDS) for all prior contracts awarded to Lockheed Martin Corporation (or other potential suppliers) for 'BLADE ASSEMBLY, MAIN' or related parts (identified by PSC code or keywords) by the Department of the Navy or other agencies. This would reveal trends in award values, quantities, contract types, and competition levels over time, providing context for the current award's value and terms.

What is the basis for the sole-source justification for this contract award?

The data indicates this contract was awarded under 'NOT COMPETED' (CT) and is a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for competitive acquisitions, and FAR Part 6.3 provides justifications for other than full and open competition. Common justifications include that the property or services are available only from a limited number of sources, or that the agency is re-establishing sources whose production base is lost. For a sole-source award to Lockheed Martin for a specific blade assembly, the justification likely centers on proprietary design rights, unique manufacturing capabilities, or the unavailability of other qualified sources that have undergone the rigorous testing and certification required for critical aircraft components. A formal Justification and Approval (J&A) document would detail the specific rationale.

What are the key performance metrics and quality assurance provisions included in this contract?

The provided data does not detail the specific key performance metrics (KPMs) or quality assurance (QA) provisions within this contract. However, for critical aircraft components like main blade assemblies, contracts typically include stringent QA clauses mandated by defense standards (e.g., AS9100 for aerospace quality management). KPMs would likely focus on on-time delivery, defect rates (e.g., parts per million), adherence to technical specifications, and potentially performance characteristics of the blades in operation. The firm fixed-price nature implies that Lockheed Martin is responsible for meeting these quality and performance standards without additional cost to the government, barring any contract modifications or unforeseen circumstances.

How does the $156.8 million award compare to the total annual spending on aircraft parts manufacturing (NAICS 336413) by the Department of the Navy?

The provided data does not offer the Department of the Navy's total annual spending on aircraft parts manufacturing (NAICS 336413). To make this comparison, one would need to aggregate all contract awards under this NAICS code for the Navy over a specific fiscal year. This $156.8 million award represents a significant single contract for a specific component. If the Navy's total annual spending in this category is substantially higher, this award would represent a smaller portion of the overall budget. Conversely, if the total annual spending is closer to this figure, it indicates a major investment in this particular component or platform. Accessing historical spending data from federal procurement databases is necessary for this comparative analysis.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: $156,840,061

Exercised Options: $156,840,061

Current Obligation: $156,840,061

Subaward Activity

Number of Subawards: 497

Total Subaward Amount: $52,714,089

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