DoD Awards $117.9M Contract to Lockheed Martin for Aircraft Manufacturing
Contract Overview
Contract Amount: $117,884,169 ($117.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-08-26
End Date: 2029-12-30
Contract Duration: 3,048 days
Daily Burn Rate: $38.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OSCAR SYSTEMS ENGINEERING
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $117.9 million to LOCKHEED MARTIN CORPORATION for work described as: OSCAR SYSTEMS ENGINEERING Key points: 1. Significant contract value of $117.9 million awarded. 2. Lockheed Martin Corporation is the sole contractor. 3. Contract is for Aircraft Manufacturing (NAICS 336411). 4. High risk due to sole-source nature and cost-plus contract type.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without more detailed cost breakdowns, but the total value suggests a substantial investment.
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 potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this large contract raises concerns about the optimal use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration (until 2029) means sustained potential for overspending. Lack of transparency in the sole-source award process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of competition
Positive Signals
- Award to a major defense contractor
- Supports critical aircraft manufacturing needs
Sector Analysis
The Aircraft Manufacturing sector (NAICS 336411) is dominated by large defense contractors. Spending in this sector is often characterized by high R&D costs and long production cycles, making competitive bidding crucial for cost efficiency.
Small Business Impact
This contract was awarded 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 fair pricing and effective contract management by the Department of the Navy.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type increases risk of cost overruns.
- Long contract duration (over 8 years) extends exposure to potential inefficiencies.
- Lack of transparency in the procurement process.
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 $117.9 million to LOCKHEED MARTIN CORPORATION. OSCAR SYSTEMS ENGINEERING
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 $117.9 million.
What is the period of performance?
Start: 2021-08-26. End: 2029-12-30.
What specific justification was provided for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically need to demonstrate that only one source can meet the requirement or that compelling urgency exists. Without this justification, it's difficult to assess if taxpayer funds were used efficiently or if a more competitive approach could have yielded better value.
How will the cost-plus fixed fee structure be managed to prevent cost overruns and ensure value for money?
Cost-plus fixed fee contracts require robust oversight to control costs. The government must actively monitor expenditures, ensure efficiency, and verify that the fixed fee remains reasonable. Regular audits and performance reviews are essential to mitigate the inherent risk of cost escalation associated with this contract type.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective delivery of aircraft manufacturing services?
Defining and tracking clear KPIs is vital for assessing contract effectiveness. These might include production timelines, quality control metrics, adherence to specifications, and delivery schedules. Robust measurement of these KPIs will allow the Department of the Navy to hold Lockheed Martin accountable for performance and ensure the successful completion of the aircraft manufacturing requirements.
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: $193,475,956
Exercised Options: $193,475,956
Current Obligation: $117,884,169
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $68,822,709
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: 2021-08-26
Current End Date: 2029-12-30
Potential End Date: 2029-12-30 00:00:00
Last Modified: 2025-12-18
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