DoD Awards $153.5M Firm Fixed Price Contract to Lockheed Martin for Air System Integration
Contract Overview
Contract Amount: $15,352,847 ($15.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-02-01
End Date: 2027-01-31
Contract Duration: 1,095 days
Daily Burn Rate: $14.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIR SYSTEM INTEGRATION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $15.4 million to LOCKHEED MARTIN CORPORATION for work described as: AIR SYSTEM INTEGRATION Key points: 1. Significant contract value for a specialized defense system. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration (3 years) suggests a critical, ongoing need. 4. Focus on Aircraft Manufacturing indicates a key sector for defense readiness.
Value Assessment
Rating: questionable
The contract is a firm fixed price type, which typically offers good value certainty. However, without competitive bidding, it's difficult to assess if the $153.5 million price reflects the best possible value or if it's inflated due to the lack of market pressure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses the competitive process, potentially limiting price discovery and preventing other capable vendors from offering their solutions, which could lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs than if the contract had been awarded through a competitive bidding process, impacting taxpayer funds.
Public Impact
Ensures continued operational capability for critical air systems. Supports advanced aerospace manufacturing and related jobs. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost escalation
- Long-term commitment without market validation
Positive Signals
- Addresses critical defense need
- Firm fixed price provides cost certainty if priced appropriately
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often high due to the complexity and strategic importance of military aircraft systems.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering effectively and that costs remain justified throughout the contract's duration. Transparency in performance reporting is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award may lead to higher costs.
- Lack of competition limits potential for innovation from other firms.
- Long contract duration increases exposure to potential cost overruns.
- Dependence on a single contractor for critical defense capability.
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to LOCKHEED MARTIN CORPORATION. AIR SYSTEM 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 $15.4 million.
What is the period of performance?
Start: 2024-02-01. End: 2027-01-31.
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 involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. To ensure fair pricing, the agency should conduct a thorough price analysis, comparing the proposed costs to historical data, independent cost estimates, or prices paid for similar items. Robust negotiation and ongoing monitoring are essential.
What are the specific risks associated with integrating this air system, and how are they being mitigated?
Risks in air system integration can include technical compatibility issues, performance shortfalls, schedule delays, and budget overruns. Mitigation strategies involve detailed technical reviews, rigorous testing protocols, phased implementation, strong project management, and clear communication channels between the government and the contractor. Contingency planning for unforeseen challenges is also critical.
How will the effectiveness of this air system integration be measured post-award?
Effectiveness will be measured through key performance indicators (KPIs) tied to the system's operational requirements. This includes metrics such as system reliability, availability, maintainability, mission success rates, and adherence to performance specifications. Regular performance reviews, user feedback, and operational testing will provide ongoing assessments of the system's effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001923R0154
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD, 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: $15,352,847
Exercised Options: $15,352,847
Current Obligation: $15,352,847
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-01
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2025-10-29
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