DoD's $6.9M Product Support Maintenance Contract Awarded to Lockheed Martin for Navy Aircraft
Contract Overview
Contract Amount: $6,937,121 ($6.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-03
End Date: 2025-12-31
Contract Duration: 393 days
Daily Burn Rate: $17.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CY 2025 PRODUCT SUPPORT MAINTENANCE
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $6.9 million to LOCKHEED MARTIN CORPORATION for work described as: CY 2025 PRODUCT SUPPORT MAINTENANCE Key points: 1. Significant contract value for product support maintenance. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential risk associated with single-vendor reliance for critical aircraft support. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $6.9M for product support maintenance is substantial. Benchmarking against similar contracts is difficult without more detailed scope information, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
Ensures continued operational readiness for Navy aircraft. Supports critical maintenance and sustainment activities. Potential impact on future procurement strategies due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Ensures critical product support.
- Long-term sustainment for Navy assets.
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically for product support and maintenance. Spending in this area is crucial for maintaining the operational readiness of military aviation assets.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to Lockheed Martin.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Further oversight may be needed to justify the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Limited transparency
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 million to LOCKHEED MARTIN CORPORATION. CY 2025 PRODUCT SUPPORT MAINTENANCE
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 $6.9 million.
What is the period of performance?
Start: 2024-12-03. End: 2025-12-31.
What is the justification for awarding this significant product support contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it suggests a lack of readily available alternatives or a strategic decision to maintain continuity with the incumbent provider.
What are the potential risks associated with a sole-source contract for aircraft product support?
Sole-source contracts for critical functions like aircraft product support carry risks of inflated pricing due to the absence of competitive bidding. There's also a risk of vendor lock-in, reduced innovation, and potential degradation of service quality over time if the vendor faces no external pressure to improve. Dependency on a single supplier can also create vulnerabilities in the supply chain.
How does this contract ensure value for taxpayer money given the sole-source nature?
Ensuring value in a sole-source contract relies heavily on robust negotiation, stringent oversight, and clear performance metrics. The government must diligently benchmark costs against industry standards and historical data. The 'COST PLUS FIXED FEE' structure aims to control costs, but effective management and auditing are paramount to prevent overspending and ensure the government receives the intended value for the services provided.
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: COST PLUS FIXED FEE (U)
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: $6,937,121
Exercised Options: $6,937,121
Current Obligation: $6,937,121
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001922D0024
IDV Type: IDC
Timeline
Start Date: 2024-12-03
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-02-24
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