DoD Awards $188.8M Contract to Lockheed Martin for ALIS/ODIN Development, Facing Limited Competition
Contract Overview
Contract Amount: $188,794,125 ($188.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-12-31
Contract Duration: 1,918 days
Daily Burn Rate: $98.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ALIS/ODIN DEVELOPMENT (LOE)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $188.8 million to LOCKHEED MARTIN CORPORATION for work described as: ALIS/ODIN DEVELOPMENT (LOE) Key points: 1. Significant investment in a critical defense system (ALIS/ODIN). 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Aircraft Manufacturing sector context suggests specialized, high-value development.
Value Assessment
Rating: questionable
The contract value of $188.8M is substantial. Without comparable contracts for similar development efforts, assessing its pricing against industry benchmarks is difficult. The Cost Plus Fixed Fee structure can incentivize cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this critical system development.
Public Impact
Impacts the development of the ALIS/ODIN system, crucial for military operations. Potential for long-term reliance on a single contractor for system sustainment. Raises questions about the government's ability to secure competitive pricing for future upgrades or related systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing due to no competition
Positive Signals
- Development of a critical defense system
- Experienced contractor (Lockheed Martin)
Sector Analysis
The Aircraft Manufacturing sector is characterized by high R&D costs and complex supply chains. Defense contracts within this sector often involve specialized, long-term development programs like ALIS/ODIN.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost control and performance. The Department of the Navy's contracting activity should be scrutinized for justification of the non-competitive award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Contract type (CPFF)
- Long-term system dependency
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $188.8 million to LOCKHEED MARTIN CORPORATION. ALIS/ODIN DEVELOPMENT (LOE)
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 $188.8 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense should provide detailed documentation supporting this decision. To ensure fair pricing, independent cost analysis and robust negotiation strategies are essential, even in sole-source scenarios, to mitigate potential overspending.
What are the potential risks associated with the Cost Plus Fixed Fee contract type for this development effort?
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can reduce the contractor's incentive to control costs. For a development effort like ALIS/ODIN, where requirements may evolve, CPFF can lead to significant budget increases beyond initial estimates.
How will the effectiveness of the ALIS/ODIN system be measured, and what are the key performance indicators (KPIs) for this contract?
Effectiveness measurement for complex systems like ALIS/ODIN typically involves defining clear performance metrics and milestones tied to operational capabilities. KPIs might include system uptime, data processing speed, user satisfaction, and successful integration with other military platforms. Regular reviews and independent testing are crucial to validate the system's effectiveness against its intended purpose.
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
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: $197,499,267
Exercised Options: $197,499,267
Current Obligation: $188,794,125
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920D0007
IDV Type: IDC
Timeline
Start Date: 2021-09-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-23
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