DoD Awards $46M Lockheed Martin Contract for Thermal Management Systems Upgrade
Contract Overview
Contract Amount: $45,985,208 ($46.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-13
End Date: 2026-12-31
Contract Duration: 748 days
Daily Burn Rate: $61.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: POWER THERMAL MANAGEMENT UPGRADE SYSTEMS ANALYSIS UNDEFINITIZED CONTRACT ACTION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $46.0 million to LOCKHEED MARTIN CORPORATION for work described as: POWER THERMAL MANAGEMENT UPGRADE SYSTEMS ANALYSIS UNDEFINITIZED CONTRACT ACTION Key points: 1. Significant contract value for specialized aircraft systems. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Focus on aircraft manufacturing sector, critical for defense readiness.
Value Assessment
Rating: questionable
The contract value of $45.9M for a thermal management system upgrade is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market alternatives or previous similar procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The absence of competition for this $45.9M contract means taxpayers may not be receiving the best possible value, potentially leading to increased overall defense spending.
Public Impact
Enhances critical aircraft systems, potentially improving operational capabilities. Sole-source award limits transparency and competitive pricing benefits for taxpayers. Long contract duration (748 days) suggests a complex and lengthy upgrade process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation indicated
Positive Signals
- Addresses critical system upgrade needs
- Long-term contract provides stability for supplier
Sector Analysis
This contract falls within the aircraft manufacturing sector, specifically for specialized thermal management systems. Benchmarks for similar upgrades are difficult to ascertain due to the sole-source nature of this award.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that opportunities for small businesses in this specific procurement may be limited, potentially missing out on innovation and economic benefits.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and that costs are reasonable. Robust auditing will be crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Lack of small business participation noted.
- Potential for contractor to not achieve best value due to lack of competitive pressure.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.0 million to LOCKHEED MARTIN CORPORATION. POWER THERMAL MANAGEMENT UPGRADE SYSTEMS ANALYSIS UNDEFINITIZED CONTRACT ACTION
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 $46.0 million.
What is the period of performance?
Start: 2024-12-13. End: 2026-12-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's unclear if other vendors could have met the requirements or if a competitive process was explored and deemed unsuitable. This lack of competition is a primary concern for value.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns?
Managing a Cost Plus Fixed Fee contract requires stringent oversight of incurred costs and contractor performance. The government must ensure that the fixed fee remains appropriate and that the contractor is incentivized to control costs. Regular audits and performance reviews are essential to prevent excessive spending.
What is the expected impact of this thermal management upgrade on aircraft performance and operational readiness?
Upgraded thermal management systems are crucial for maintaining optimal operating temperatures of sensitive aircraft components, especially under demanding conditions. This upgrade is expected to enhance reliability, extend component lifespan, and potentially improve overall aircraft performance and mission readiness by preventing overheating issues.
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
Offers Received: 1
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: $107,043,651
Exercised Options: $107,043,651
Current Obligation: $45,985,208
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001924G0010
IDV Type: BOA
Timeline
Start Date: 2024-12-13
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-09-30
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