DoD Awards $9.9M Contract for ARPDD/ASW Capability Integration to Lockheed Martin
Contract Overview
Contract Amount: $9,894,964 ($9.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-12-21
End Date: 2026-01-31
Contract Duration: 1,137 days
Daily Burn Rate: $8.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ARPDD AND ASW CAPABILITY INTEGRATION
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to LOCKHEED MARTIN CORPORATION for work described as: ARPDD AND ASW CAPABILITY INTEGRATION Key points: 1. Contract value of $9.9 million for critical defense capabilities. 2. Sole-source award to Lockheed Martin, a major defense contractor. 3. Potential risks associated with limited competition and long contract duration. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $9.9 million appears reasonable for specialized defense integration. However, without specific benchmarks for ARPDD and ASW capabilities, a precise pricing assessment is difficult. Comparison to similar sole-source contracts would be necessary for a more definitive evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers compared to a competitive procurement process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from the cost savings typically achieved through competitive bidding.
Public Impact
Enhances critical naval warfare capabilities for the Department of the Navy. Supports advanced technology integration for defense systems. Impacts national security through improved operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration (over 3 years).
- Lack of publicly available cost data for benchmarking.
Positive Signals
- Addresses critical defense needs.
- Utilizes a major defense contractor with established expertise.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely based on technological advancements and defense priorities. Benchmarks are difficult to establish without more specific details on the capabilities being integrated.
Small Business Impact
This contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight will be crucial given the sole-source nature of this award. The Department of the Navy should ensure rigorous monitoring of performance and costs to maximize taxpayer value and accountability throughout the contract's lifecycle.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Limited public cost data
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to LOCKHEED MARTIN CORPORATION. ARPDD AND ASW CAPABILITY 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 $9.9 million.
What is the period of performance?
Start: 2022-12-21. End: 2026-01-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the Department of the Navy should conduct thorough cost analyses, review contractor cost proposals, and potentially negotiate profit margins. Independent government cost estimates and comparisons to similar sole-source procurements can also help validate pricing.
What are the specific risks associated with integrating ARPDD and ASW capabilities, and how are they being mitigated?
Integrating advanced systems like ARPDD (Anti-Submarine Warfare Related Products and Data Dissemination) and ASW capabilities carries risks such as technical incompatibility, schedule delays, cost overruns, and performance shortfalls. Mitigation strategies include robust systems engineering, phased integration with clear milestones, rigorous testing and validation, and strong program management oversight. Clear performance metrics and contingency planning are also essential.
How will the effectiveness of this capability integration be measured and validated post-delivery?
Effectiveness will be measured through a combination of technical performance tests, operational assessments, and user feedback. Key performance parameters (KPPs) defined in the contract will be evaluated during integrated testing. Post-delivery, operational testing and evaluation (OT&E) by the end-users will confirm the system's ability to meet mission requirements and provide the intended warfighting advantage. Lessons learned will inform future procurements.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $9,894,964
Exercised Options: $9,894,964
Current Obligation: $9,894,964
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $2,767,848
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: 2022-12-21
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-16
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