DoD Awards $104M Lockheed Martin Contract for Aircraft Manufacturing Engineering Support
Contract Overview
Contract Amount: $10,412,711 ($10.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-03
End Date: 2028-03-31
Contract Duration: 1,183 days
Daily Burn Rate: $8.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING INTEGRATION SUPPORT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to LOCKHEED MARTIN CORPORATION for work described as: ENGINEERING INTEGRATION SUPPORT Key points: 1. Significant contract awarded to a major defense contractor, Lockheed Martin. 2. Focus on aircraft manufacturing engineering support indicates a critical need within the Navy. 3. The contract's 'NOT COMPETED' status raises questions about potential price discovery limitations. 4. Long duration of nearly 4 years suggests a substantial and ongoing requirement.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.
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 may result in higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are being used for this sole-source award, and the lack of competition means there's a risk of overpayment.
Public Impact
Taxpayers may be paying a premium due to the lack of competition. The long-term nature of the contract suggests sustained defense spending in this area. Potential for cost overruns exists with Cost Plus Fixed Fee contracts. The specific engineering support provided is crucial for naval aviation readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical naval aviation needs
- Long-term commitment ensures program stability
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting aircraft manufacturing. Spending in this area is often driven by national security requirements and technological advancements.
Small Business Impact
The awardee, Lockheed Martin Corporation, is a large prime contractor. There is no indication of small business participation in this specific delivery order, suggesting potential missed opportunities for small businesses.
Oversight & Accountability
Oversight will be critical to ensure that the Cost Plus Fixed Fee structure does not lead to excessive costs. The Department of the Navy's contracting officers must diligently monitor performance and expenditures.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost Plus Fixed Fee contracts carry inherent risk of cost overruns.
- Limited transparency on specific cost drivers.
- Potential for missed small business subcontracting opportunities.
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 $10.4 million to LOCKHEED MARTIN CORPORATION. ENGINEERING INTEGRATION SUPPORT
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 $10.4 million.
What is the period of performance?
Start: 2025-01-03. End: 2028-03-31.
What specific engineering integration tasks are included in this contract, and how do they directly contribute to the operational readiness of naval aircraft?
The contract details are limited, but 'ENGINEERING INTEGRATION SUPPORT' typically involves technical expertise for system design, testing, modification, and troubleshooting of aircraft components and systems. This support is vital for ensuring that naval aircraft are safe, effective, and ready for deployment, addressing complex technical challenges that arise during development, upgrades, or maintenance.
Given the sole-source nature, what mechanisms are in place to ensure fair and reasonable pricing and prevent potential cost overruns?
While not competed, the Cost Plus Fixed Fee (CPFF) structure requires the contractor to justify costs and the government to negotiate a fixed fee. The Department of the Navy should employ robust cost analysis, performance monitoring, and potentially audits to ensure the pricing is fair and reasonable and to mitigate the risk of cost overruns inherent in CPFF contracts.
How does this contract align with the Department of Defense's broader strategy for aircraft modernization and sustainment, and what is the long-term outlook for this type of support?
This contract likely supports ongoing or upcoming modernization programs for naval aircraft, ensuring they meet evolving threats and technological standards. The long duration suggests a strategic commitment to maintaining and upgrading the fleet. The outlook for such support is generally strong, given the continuous need for advanced capabilities and the lifecycle management of complex defense systems.
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: $41,646,305
Exercised Options: $41,646,305
Current Obligation: $10,412,711
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: 2025-01-03
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2026-01-09
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