Navy Awards $2.6B Lockheed Martin Contract for Field Training Services, Not Competed
Contract Overview
Contract Amount: $26,110,002 ($26.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-11-20
End Date: 2027-02-28
Contract Duration: 830 days
Daily Burn Rate: $31.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 30P08 FIELDING US, DOD PARTNER, AND FMS CUSTOMERS.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $26.1 million to LOCKHEED MARTIN CORPORATION for work described as: 30P08 FIELDING US, DOD PARTNER, AND FMS CUSTOMERS. Key points: 1. Significant contract value of $261.1 million awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. Contract duration extends to February 2027, impacting long-term budget planning. 4. Focus on flight training services within the defense sector.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Without competitive benchmarking, it's difficult to assess if the $261.1 million price is reasonable for the services provided.
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 allows the contractor to set higher prices than in a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential flight training services.
Public Impact
Military readiness and pilot training effectiveness are directly impacted by this contract. Taxpayer funds are allocated to a significant defense contract without competitive pressure. The long-term commitment to Lockheed Martin for these services could affect future procurement strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense mission
- Established contractor relationship
Sector Analysis
This contract falls within the Defense sector, specifically focusing on flight training. Defense spending benchmarks often show significant variation, but a lack of competition for a contract of this size warrants scrutiny.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large sole-source defense contracts.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be crucial to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that performance meets requirements.
Related Government Programs
- Flight Training
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Potential for cost overruns
- Lack of competitive pressure for innovation
- Long-term commitment without re-evaluation
Tags
flight-training, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 million to LOCKHEED MARTIN CORPORATION. 30P08 FIELDING US, DOD PARTNER, AND FMS CUSTOMERS.
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 $26.1 million.
What is the period of performance?
Start: 2024-11-20. End: 2027-02-28.
What is the justification for not competing this significant flight training contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further investigation into the specific circumstances surrounding this award is warranted to understand the rationale and ensure it aligns with procurement regulations.
How will the agency ensure cost control with a Cost Plus Fixed Fee contract awarded sole-source?
The agency must implement robust oversight mechanisms, including detailed cost monitoring, performance reviews, and regular audits. Establishing clear performance metrics and milestones is essential. The fixed fee component provides some incentive for the contractor to manage costs efficiently, but vigilant management by the contracting officer is paramount to prevent cost overruns.
What is the potential impact on pilot training quality and readiness due to the lack of competition?
While Lockheed Martin is an established provider, the absence of competition removes the incentive for continuous improvement driven by market forces. The agency must ensure rigorous performance standards and quality assurance processes are in place to maintain or enhance training quality and readiness. Without competitive pressure, there's a risk of complacency affecting the effectiveness of the training program.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Flight Training
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001922R0106
Pricing Type: COST PLUS FIXED FEE (U)
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: $26,110,002
Exercised Options: $26,110,002
Current Obligation: $26,110,002
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001924D0110
IDV Type: IDC
Timeline
Start Date: 2024-11-20
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-06-23
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