DoD Awards $184.5M Contract to Lockheed Martin for Aircraft Manufacturing Services
Contract Overview
Contract Amount: $184,551,699 ($184.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-05-03
End Date: 2030-01-31
Contract Duration: 2,830 days
Daily Burn Rate: $65.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PCD EU VM DMS REDESIGN
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $184.6 million to LOCKHEED MARTIN CORPORATION for work described as: PCD EU VM DMS REDESIGN Key points: 1. Significant contract value for aircraft manufacturing. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2030) suggests a critical, ongoing need. 4. Focus on aircraft manufacturing aligns with defense sector priorities.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar aircraft manufacturing contracts is difficult without more detailed cost breakdowns.
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 may result in higher overall spending and reduced value for taxpayer dollars.
Public Impact
Impacts the defense industrial base and Lockheed Martin's operations. Ensures continued support for critical aircraft platforms. Potential for job creation or retention within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense needs
- Long-term planning and stability
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key component of the broader aerospace and defense industry. Spending in this sector is heavily influenced by government defense budgets and geopolitical factors.
Small Business Impact
There is no indication of small business participation in this specific contract award. Future opportunities may exist for small businesses as subcontractors, but this award itself does not directly benefit them.
Oversight & Accountability
Oversight will be crucial given the sole-source and cost-plus nature of the contract to ensure costs remain reasonable and performance meets requirements.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to CPFF structure
- Long-term contract duration may not adapt to evolving needs
- Limited transparency into specific cost drivers
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 $184.6 million to LOCKHEED MARTIN CORPORATION. PCD EU VM DMS REDESIGN
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 $184.6 million.
What is the period of performance?
Start: 2022-05-03. End: 2030-01-31.
What specific aircraft platforms or systems does this contract support, and what is the justification for a sole-source award?
The contract is for the 'PCD EU VM DMS REDESIGN' which likely pertains to specific aircraft components or systems requiring redesign and support. A sole-source award typically occurs when only one vendor possesses the necessary unique capabilities, proprietary knowledge, or when urgency precludes a competitive process. Detailed justification from the Department of the Navy would be required to fully assess this.
How will the Department of Defense ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?
Effective cost control will rely on robust government oversight, detailed auditing of Lockheed Martin's incurred costs, and clear performance metrics. The fixed fee component provides some incentive for efficiency, but the government must actively manage the cost-reimbursement aspect through rigorous negotiation and monitoring to prevent cost overruns and ensure fair pricing.
What is the long-term strategic implication of awarding such a significant contract without competition for critical aircraft manufacturing capabilities?
Awarding critical capabilities without competition can potentially stifle innovation and reduce market pressure on pricing over time. It may also signal a reliance on a single provider, potentially creating long-term dependencies. The DoD should consider strategies to foster competition in future procurements or ensure robust long-term sustainment planning.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
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: $184,551,700
Exercised Options: $184,551,700
Current Obligation: $184,551,699
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $149,186,029
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: 2022-05-03
Current End Date: 2030-01-31
Potential End Date: 2030-01-31 00:00:00
Last Modified: 2024-11-26
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