DoD's Navy awards $36M Lockheed Martin contract for EW support and logistics, raising competition concerns
Contract Overview
Contract Amount: $35,975,652 ($36.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2024-09-11
Contract Duration: 619 days
Daily Burn Rate: $58.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CY2023 TLS SUPPORT SERVICES PROGRAM SUPPORT: PROGRAM, MAINTENANCE AND LOGISTICS, SCHEDULED MAINTENANCE OF SUPPORT AND TEST EQUIPMENT, ELECTRONIC WARFARE SUPPORT, PLANNED MAINTENANCE INTERVALS AND APPLICABLE GOODS AND SERVICES TAX
Plain-Language Summary
Department of Defense obligated $36.0 million to LOCKHEED MARTIN CORPORATION for work described as: CY2023 TLS SUPPORT SERVICES PROGRAM SUPPORT: PROGRAM, MAINTENANCE AND LOGISTICS, SCHEDULED MAINTENANCE OF SUPPORT AND TEST EQUIPMENT, ELECTRONIC WARFARE SUPPORT, PLANNED MAINTENANCE INTERVALS AND APPLICABLE GOODS AND SERVICES TAX Key points: 1. Contract awarded to Lockheed Martin for essential electronic warfare support and logistics. 2. Significant portion of the contract value is for scheduled maintenance and program support. 3. Limited competition raises questions about potential overpricing and taxpayer value. 4. The contract spans over 20 months, indicating a substantial, ongoing need.
Value Assessment
Rating: questionable
The contract's firm fixed price structure with no readily available benchmark makes a precise value assessment difficult. However, the lack of competition suggests potential for inflated costs compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying more than necessary for these critical support services.
Public Impact
Ensures continued operational readiness for critical electronic warfare systems. Supports essential maintenance and logistics for naval aviation assets. Potential for increased costs due to limited competition impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Limited competition
- Lack of benchmark data
- Long contract duration
Positive Signals
- Essential services for national security
- Clear contract scope
Sector Analysis
This contract falls under general support activities for air transportation, specifically focusing on electronic warfare and logistics. Benchmarks for similar specialized support services are often difficult to ascertain due to proprietary nature and unique requirements.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award, as the prime contractor is Lockheed Martin Corporation and no subcontracting information is provided.
Oversight & Accountability
The Department of Defense, specifically the Department of the Navy, is responsible for oversight. The award process and justification for limited competition would be subject to internal review and potentially GAO scrutiny if protested.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to lack of competition.
- Risk of vendor lock-in for critical EW support.
- Limited transparency in pricing and cost build-up.
- Dependence on a single contractor for essential services.
Tags
other-support-activities-for-air-transpo, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.0 million to LOCKHEED MARTIN CORPORATION. CY2023 TLS SUPPORT SERVICES PROGRAM SUPPORT: PROGRAM, MAINTENANCE AND LOGISTICS, SCHEDULED MAINTENANCE OF SUPPORT AND TEST EQUIPMENT, ELECTRONIC WARFARE SUPPORT, PLANNED MAINTENANCE INTERVALS AND APPLICABLE GOODS AND SERVICES TAX
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 $36.0 million.
What is the period of performance?
Start: 2023-01-01. End: 2024-09-11.
What is the justification for limiting competition on this critical support services contract?
The justification for limiting competition is not provided in the data. Typically, such limitations are based on factors like unique technical capabilities, urgent needs, or existing system compatibility. A thorough review would be needed to assess if these justifications are valid and if alternative competitive strategies were explored.
How does the lack of competition impact the overall cost-effectiveness of this contract?
The lack of competition inherently reduces the government's leverage in price negotiations. Without competing bids, Lockheed Martin may not be incentivized to offer the lowest possible price. This can lead to higher per-unit costs and a reduced return on investment for taxpayer funds allocated to this contract.
What mechanisms are in place to ensure the effectiveness and quality of services provided under this sole-source award?
Effectiveness and quality are typically ensured through robust contract performance management, including defined deliverables, key performance indicators (KPIs), and regular progress reviews. The Navy contracting officer and technical representatives are responsible for monitoring Lockheed Martin's performance against the contract requirements.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $35,975,652
Exercised Options: $35,975,652
Current Obligation: $35,975,652
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920D0001
IDV Type: IDC
Timeline
Start Date: 2023-01-01
Current End Date: 2024-09-11
Potential End Date: 2024-09-11 00:00:00
Last Modified: 2025-04-14
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