DoD Awards $38.6M to Lockheed Martin for Flight Control Computer Redesign, Raising Concerns Over Competition
Contract Overview
Contract Amount: $38,598,134 ($38.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2026-11-30
Contract Duration: 426 days
Daily Burn Rate: $90.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FLIGHT CONTROL COMPUTER REDESIGN NRE EFFORT
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $38.6 million to LOCKHEED MARTIN CORPORATION for work described as: FLIGHT CONTROL COMPUTER REDESIGN NRE EFFORT Key points: 1. Significant investment in critical flight control systems. 2. Sole-source award to a major defense contractor. 3. Potential for cost overruns due to cost-plus contract type. 4. Limited transparency on pricing benchmarks. 5. Impact on small business participation is unclear.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which offers less price certainty than fixed-price contracts. Without a competitive benchmark or detailed cost breakdown, assessing the value for money is difficult.
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 as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying a premium for the redesign effort.
Public Impact
Ensures continued operational readiness of naval aircraft. Supports advanced technological upgrades in defense systems. Potential for job creation within Lockheed Martin's facilities. Highlights reliance on established defense contractors for specialized components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type increases cost risk.
- Lack of public pricing benchmarks.
- Limited small business involvement.
Positive Signals
- Addresses critical need for system upgrade.
- Utilizes established contractor with relevant expertise.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft components. Spending in this area is often characterized by high R&D costs and long procurement cycles, with a significant portion awarded to large, established contractors.
Small Business Impact
The data indicates that small business participation is not a stated factor in this award. Given the sole-source nature and the prime contractor, opportunities for small businesses may be limited unless subcontracted.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be crucial to manage costs under the CPFF structure and ensure the redesign meets technical specifications effectively.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency on pricing
- No stated small business goals
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.6 million to LOCKHEED MARTIN CORPORATION. FLIGHT CONTROL COMPUTER REDESIGN NRE EFFORT
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 $38.6 million.
What is the period of performance?
Start: 2025-09-30. End: 2026-11-30.
What is the estimated cost savings or efficiency gain expected from this redesign compared to maintaining the current system?
The provided data does not specify the expected cost savings or efficiency gains from the flight control computer redesign. A thorough cost-benefit analysis would be necessary to quantify these benefits and justify the investment, especially given the sole-source and cost-plus nature of the contract.
What specific risks are associated with a sole-source award for a critical component like a flight control computer?
Sole-source awards for critical components like flight control computers carry risks of inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. It also limits the government's ability to leverage market competition for better terms.
How will the effectiveness of the redesigned flight control computer be measured and validated post-delivery?
Effectiveness will likely be measured through rigorous testing and validation protocols established by the Department of the Navy, including flight testing, performance benchmarks, and reliability assessments. Ensuring the redesign meets or exceeds the original specifications and enhances operational capabilities is key.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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
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: $38,598,134
Exercised Options: $38,598,134
Current Obligation: $38,598,134
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $5,972,742
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
Start Date: 2025-09-30
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2025-08-26
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