DoD awards $52M+ for Aircraft Manufacturing Maintenance Systems, sole-sourced to Lockheed Martin

Contract Overview

Contract Amount: $52,022,181 ($52.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-07-31

End Date: 2027-08-30

Contract Duration: 1,125 days

Daily Burn Rate: $46.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: MAINTENANCE SYSTEMS ODIN HARDWARE (MOHW) INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) DELIVERY ORDER

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $52.0 million to LOCKHEED MARTIN CORPORATION for work described as: MAINTENANCE SYSTEMS ODIN HARDWARE (MOHW) INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) DELIVERY ORDER Key points: 1. Significant contract value for specialized aircraft maintenance hardware. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on aircraft manufacturing highlights a critical defense sector.

Value Assessment

Rating: questionable

The contract is a fixed-price incentive type, which can offer some cost control. However, without competition, it's difficult to benchmark pricing effectively against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to less favorable terms for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these maintenance systems.

Public Impact

Ensures continued support for critical aircraft maintenance systems. Potential for cost overruns due to sole-source nature. Impacts the operational readiness of Navy aircraft fleets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for cost escalation

Positive Signals

Addresses critical maintenance needs
Fixed-price incentive contract type

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting maintenance hardware for the Department of the Navy. Spending in this area is crucial for defense readiness but often involves specialized, high-cost components.

Small Business Impact

The contract data indicates that small businesses were not involved in this specific award, as it was a sole-source contract awarded to a large corporation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, and abuse. Robust justification for the lack of competition is essential.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in price discovery.
Dependency on a single contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.0 million to LOCKHEED MARTIN CORPORATION. MAINTENANCE SYSTEMS ODIN HARDWARE (MOHW) INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) 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 $52.0 million.

What is the period of performance?

Start: 2024-07-31. End: 2027-08-30.

What is the justification for awarding this contract sole-source to Lockheed Martin?

The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent requirements where only one vendor can meet the need. Without this specific justification, the award raises concerns about whether competitive alternatives were adequately explored or if market research was insufficient.

How will the government ensure cost-effectiveness without competitive bidding?

The government will likely rely on the 'incentive' aspect of the fixed-price incentive contract to manage costs. This involves setting target costs and sharing savings or overruns. However, robust negotiation and continuous monitoring of Lockheed Martin's performance and pricing will be critical to mitigate risks associated with the lack of competition.

What is the long-term impact on the Navy's maintenance capabilities?

This award ensures the continued availability of necessary maintenance hardware, supporting the operational readiness of the Navy's aircraft. However, a long-term strategy that explores competitive options for future procurements or encourages alternative solutions could enhance sustainment and potentially reduce costs over time.

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: $52,022,181

Exercised Options: $52,022,181

Current Obligation: $52,022,181

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