DoD Awards $320M Lockheed Martin Contract for ACURL Phase 2 UCA Integration
Contract Overview
Contract Amount: $320,257,670 ($320.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-27
End Date: 2029-07-31
Contract Duration: 2,561 days
Daily Burn Rate: $125.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: ACURL PHASE 2 UCA INTEGRATION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $320.3 million to LOCKHEED MARTIN CORPORATION for work described as: ACURL PHASE 2 UCA INTEGRATION Key points: 1. Significant investment in advanced defense technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long contract duration (2029) presents potential for cost overruns. 4. Focus on navigation and guidance systems indicates strategic importance.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the $320M price is optimal.
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 limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition for a large contract like this may result in taxpayers paying a premium for the goods and services.
Public Impact
Enhances critical naval navigation and guidance capabilities. Supports advanced military technology development. Potential for long-term reliance on a single contractor. Impacts the defense industrial base and supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of small business participation
Positive Signals
- Strategic technology investment
- Experienced contractor
- Clear end-use application
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced navigation and guidance systems. Spending in this area is critical for national security, but often involves complex, high-cost procurements.
Small Business Impact
The data indicates that small businesses were not involved in this contract (sb: false). This suggests a missed opportunity to foster small business growth within the defense supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Transparency in cost reporting will be crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited small business involvement
- Long-term contractor dependency
Tags
search-detection-navigation-guidance-aer, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $320.3 million to LOCKHEED MARTIN CORPORATION. ACURL PHASE 2 UCA INTEGRATION
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 $320.3 million.
What is the period of performance?
Start: 2022-07-27. End: 2029-07-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's impossible to confirm the specific reason. Agencies should conduct thorough market research and price analyses even in sole-source situations to ensure taxpayers receive fair value.
What are the potential risks associated with a Cost Plus Incentive Fee contract for this program?
Cost Plus Incentive Fee (CPIF) contracts share cost risks between the government and contractor. While they can incentivize efficiency, they also carry the risk of cost overruns if targets are not met or if the baseline cost is underestimated. This requires robust government oversight of contractor performance and cost reporting.
How will the effectiveness of the ACURL Phase 2 UCA integration be measured and validated?
Effectiveness will likely be measured through rigorous testing and evaluation protocols defined in the contract. Key performance parameters related to navigation accuracy, system reliability, and integration with existing platforms will be assessed. Regular performance reviews and milestone achievements will also indicate progress.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001921R0070
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $320,257,670
Exercised Options: $320,257,670
Current Obligation: $320,257,670
Subaward Activity
Number of Subawards: 52
Total Subaward Amount: $169,146,763
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-27
Current End Date: 2029-07-31
Potential End Date: 2029-07-31 00:00:00
Last Modified: 2025-07-28
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