DoD awards $19.8M for aircraft parts, with Lockheed Martin as sole provider

Contract Overview

Contract Amount: $19,792,231 ($19.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2025-10-31

Contract Duration: 35 days

Daily Burn Rate: $565.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PRODUCTION DMS PARTS - US

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to LOCKHEED MARTIN CORPORATION for work described as: PRODUCTION DMS PARTS - US Key points: 1. Contract focuses on essential production parts for aircraft, indicating ongoing operational needs. 2. Sole-source award raises questions about competition and potential for price optimization. 3. The contract duration of 35 days suggests a need for rapid or short-term supply. 4. Fixed-price contract type shifts risk to the contractor, potentially impacting final cost. 5. Awarded by the Defense Contract Management Agency, highlighting a critical defense supply chain component. 6. The specific part number (336413) points to a specialized component within a larger system.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for the specific part number. The fixed-price nature provides some cost certainty, but the lack of competition prevents a direct comparison of pricing against market alternatives. The total award amount of $19.8 million for a 35-day period warrants scrutiny to ensure it aligns with industry standards for similar specialized aircraft components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin Corporation, was solicited. This approach is typically used when a unique capability or proprietary item is required, or when urgency precludes a competitive process. The lack of competition means potential savings from a bidding process were not realized, and the government relies on Lockheed Martin's pricing without market validation.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without alternative offers, there's less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The U.S. Department of Defense benefits from the continued availability of critical aircraft parts. This contract ensures the operational readiness and maintenance of specific aircraft platforms. The primary beneficiaries are the military branches relying on these parts for their aviation assets. The contract supports the defense industrial base, specifically within the aircraft parts manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Short contract duration (35 days) may indicate a reactive procurement rather than strategic planning.
Lack of transparency in the justification for sole-source procurement could hide inefficiencies.

Positive Signals

Fixed-price contract type provides cost certainty for the government, assuming the price is fair.
Award to a major defense contractor like Lockheed Martin suggests a critical and potentially complex component.
The contract ensures the supply of necessary parts, supporting military readiness.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components is often characterized by high barriers to entry due to proprietary technology, stringent quality requirements, and long development cycles. Lockheed Martin is a dominant player in this space. Comparable spending benchmarks are difficult to establish without knowing the specific part and its criticality, but large sole-source awards for specialized components are not uncommon in defense.

Small Business Impact

This contract does not appear to include a small business set-aside, nor is there information suggesting subcontracting opportunities for small businesses. The award to a large prime contractor like Lockheed Martin typically means that any small business involvement would be at the subcontracting level, determined by the prime. Without specific subcontracting plans mandated, the direct impact on the small business ecosystem for this particular award is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contract compliance and quality. The fixed-price nature of the contract means that financial oversight focuses on ensuring the delivered goods meet specifications. Transparency regarding the justification for the sole-source award and the pricing structure would be key areas for public accountability, though detailed information may be limited due to the nature of defense procurement.

Related Government Programs

Aircraft Maintenance and Repair
Defense Logistics Agency (DLA) Procurement
Air Force/Navy Aviation Procurement
Lockheed Martin Defense Contracts

Risk Flags

Sole-source award
Lack of competition
Short contract duration
High daily expenditure rate

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to LOCKHEED MARTIN CORPORATION. PRODUCTION DMS PARTS - US

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2025-09-26. End: 2025-10-31.

What is the specific aircraft platform or system these 'PRODUCTION DMS PARTS - US' are intended for, and why is Lockheed Martin the sole source provider?

The provided data does not specify the exact aircraft platform or system for which these 'PRODUCTION DMS PARTS - US' are intended. However, the designation 'PRODUCTION DMS PARTS' suggests they are components required for the ongoing manufacturing or sustainment of an existing aircraft. Lockheed Martin Corporation is often the sole source provider for parts related to its proprietary aircraft designs (e.g., F-35, F-16, C-130) due to intellectual property rights, unique manufacturing processes, or specialized tooling that only they possess. A formal justification for other than full and open competition (JOFOC) would typically be required by the government to document why only Lockheed Martin can fulfill this requirement, citing reasons such as unique technical expertise, proprietary data, or critical sustainment needs for specific platforms.

How does the $19.8 million award amount for a 35-day period compare to typical spending for similar aircraft parts, especially considering it's a sole-source contract?

The award amount of $19.8 million for a 35-day period is substantial and suggests these are either high-value, complex components or a significant quantity of parts are being procured. Without knowing the specific part number (336413) and its function, a direct comparison is difficult. However, sole-source contracts inherently lack the price competition that usually drives down costs. Therefore, this amount should be benchmarked against historical sole-source awards for similar critical components by the Department of Defense or other agencies, and ideally, against internal cost estimates or should-cost analyses performed by the government. The high daily burn rate ($19.8M / 35 days ≈ $565k/day) warrants careful review to ensure it reflects the true cost of production and delivery for these specialized parts.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis, particularly concerning cost and performance?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Lockheed Martin, as the sole provider, has significant leverage. Performance risks include potential delays or quality issues, although awarding to a large, established contractor like Lockheed Martin often mitigates these to some extent. However, without competition, there's less incentive for the contractor to proactively exceed expectations on performance or cost efficiency. The government must rely heavily on robust contract oversight, clear performance metrics, and potentially pre-negotiated incentive structures to manage these risks effectively. The short duration also implies a potential risk of supply chain disruption if the contractor faces unforeseen issues.

What is Lockheed Martin Corporation's track record with the Department of Defense for supplying aircraft parts, and does this contract align with historical patterns?

Lockheed Martin Corporation has an extensive and long-standing track record as a major defense contractor for the Department of Defense (DoD), supplying a wide range of aircraft, systems, and components. They are known for producing major platforms like the F-35, F-16, and C-130, and consequently, they are a primary source for many of their associated parts. Historical spending patterns show significant contract awards to Lockheed Martin for aircraft production, sustainment, and spare parts across various programs. This $19.8 million award for 'PRODUCTION DMS PARTS' aligns with this historical pattern, reflecting the ongoing need for components to support DoD aviation assets, particularly those manufactured by Lockheed Martin. Their established position in the defense industrial base makes sole-source awards for specific proprietary parts a recurring feature of their contract portfolio with the DoD.

Given the 'NOT AVAILABLE FOR COMPETITION' status, what specific justification is typically required, and how does this impact the government's ability to ensure value for money?

When a contract is designated 'NOT AVAILABLE FOR COMPETITION,' it signifies a sole-source procurement. The government is typically required to publish a Justification for Other Than Full and Open Competition (JOFOC) that details the rationale for not seeking multiple bids. Common justifications include: unique capabilities or proprietary technology held by only one source, urgent and compelling needs where competition is impractical, or when a specific brand-name item is essential for interoperability or standardization. This justification must be robust and approved by appropriate authorities. While a JOFOC aims to ensure necessity, it inherently limits the government's ability to ensure maximum value for money, as the price is not validated through market competition. Value is then assessed based on negotiation, historical pricing, and cost realism analysis by the contracting officer.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $19,792,231

Exercised Options: $19,792,231

Current Obligation: $19,792,231

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001922D0043

IDV Type: IDC

Timeline