DoD's $153.6M ODIN Hardware Contract Awarded to Lockheed Martin Faces Scrutiny
Contract Overview
Contract Amount: $153,570,684 ($153.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2026-04-30
Contract Duration: 943 days
Daily Burn Rate: $162.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: MAINTENANCE SYSTEMS ODIN INDEFINITE DELIVERY INDEFINITE QUANTITY HARDWARE (MOHW) DELIVERY ORDER
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $153.6 million to LOCKHEED MARTIN CORPORATION for work described as: MAINTENANCE SYSTEMS ODIN INDEFINITE DELIVERY INDEFINITE QUANTITY HARDWARE (MOHW) DELIVERY ORDER Key points: 1. Significant contract value ($153.6M) awarded to a single large corporation. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. The contract's duration (943 days) and fixed-price incentive structure warrant close monitoring. 4. Focus on Aircraft Manufacturing (NAICS 336411) within the Defense sector.
Value Assessment
Rating: questionable
The contract's $153.6M value is substantial. Without competitive bidding, it's difficult to assess if this price is aligned with market rates for similar hardware maintenance systems. Benchmarking against other DoD contracts for comparable systems is crucial.
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 offer competitive pricing.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these hardware maintenance systems.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced technological advancement if alternative solutions are not explored. Dependence on a single contractor for critical aircraft maintenance hardware. The Department of Defense's procurement process for this contract warrants further investigation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Awarded to a known defense contractor
- Clear end dates for contract performance
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. The $153.6M award is a significant expenditure. Benchmarks for similar maintenance systems within the DoD are essential for evaluating value.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight to ensure fair pricing and effective delivery. Accountability mechanisms should be in place to track performance and prevent potential cost overruns.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Sole-source award
- Potential for inflated pricing
- Limited transparency in cost justification
- No clear small business participation noted
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 $153.6 million to LOCKHEED MARTIN CORPORATION. MAINTENANCE SYSTEMS ODIN INDEFINITE DELIVERY INDEFINITE QUANTITY HARDWARE (MOHW) DELIVERY ORDER
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 $153.6 million.
What is the period of performance?
Start: 2023-09-30. End: 2026-04-30.
What specific justification was provided for not competing this contract, and does it align with federal procurement regulations for sole-source awards?
The provided data states the contract was 'NOT COMPETED' but does not offer a specific justification. Federal regulations allow for sole-source awards under certain conditions, such as when only one responsible source can provide the required supplies or services. A thorough review of the justification documentation is needed to confirm its validity and adherence to procurement laws.
How does the unit cost of the hardware procured under this contract compare to similar systems acquired through competitive processes by the DoD or other federal agencies?
Without access to detailed pricing breakdowns and comparable contract data, a direct unit cost comparison is not possible. However, the absence of competition inherently raises concerns that the unit costs may be higher than what would be achieved in a competitive environment. Further analysis would require access to specific item costs and benchmark data.
What are the potential risks associated with a sole-source award for critical aircraft maintenance hardware, particularly regarding long-term sustainment and technological obsolescence?
Sole-source awards for critical hardware pose risks of vendor lock-in, potentially leading to inflated prices and limited flexibility in adopting newer technologies. Long-term sustainment could become dependent on a single supplier's pricing and support decisions. There's also a risk that the hardware may become technologically obsolete faster if the contractor lacks competitive pressure to innovate or offer upgrades.
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
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $153,570,684
Exercised Options: $153,570,684
Current Obligation: $153,570,684
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001922D0004
IDV Type: IDC
Timeline
Start Date: 2023-09-30
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-15
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