DoD's $22.3M contract for CH-53K technical data package awarded to Lockheed Martin without competition

Contract Overview

Contract Amount: $22,309,643 ($22.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2028-09-29

Contract Duration: 1,094 days

Daily Burn Rate: $20.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TDP NON-RECURRING ENGINEERING (NRE) ASSOCIATED WITH DELIVERING THE CH-53K MULTI-YEAR PROCUREMENT (MYP) TECHNICAL DATA PACKAGE (TDP).

Place of Performance

Location: STRATFORD, GREATER BRIDGEPORT County, CONNECTICUT, 06615

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to LOCKHEED MARTIN CORPORATION for work described as: TDP NON-RECURRING ENGINEERING (NRE) ASSOCIATED WITH DELIVERING THE CH-53K MULTI-YEAR PROCUREMENT (MYP) TECHNICAL DATA PACKAGE (TDP). Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant investment in technical data package development for a major defense platform. 3. Long-term contract duration suggests ongoing support and development needs. 4. Cost-plus-fixed-fee structure may incentivize cost overruns. 5. Focus on a specific aircraft part manufacturing code indicates specialized requirements. 6. Awarded by the Department of the Navy, highlighting naval aviation priorities.

Value Assessment

Rating: questionable

The contract's value of $22.3 million for a technical data package (TDP) is substantial. Without competitive bidding, it is difficult to benchmark the value for money. The cost-plus-fixed-fee (CPFF) contract type, while common for complex development, carries inherent risks of cost escalation. Comparing this to similar TDP development contracts for other major aircraft programs would be necessary for a more definitive value assessment. The lack of competition raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly marked as 'NOT COMPETED,' indicating a sole-source award. This means only one vendor, Lockheed Martin Corporation, was solicited. The absence of a competitive process limits the government's ability to explore alternative solutions or negotiate pricing based on multiple offers. This approach is typically justified when a specific contractor possesses unique capabilities or intellectual property essential for the requirement.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding, potentially leading to higher overall program costs.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive the technical data package for the CH-53K helicopter. This contract supports the development and sustainment of critical naval aviation capabilities. The contract is geographically focused on Connecticut, where Lockheed Martin's relevant operations are likely located. It ensures the availability of specialized technical expertise within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee structure can incentivize higher spending without strict cost controls.
Sole-source awards reduce transparency and accountability in pricing.
Long contract duration could mask inefficiencies if not closely monitored.

Positive Signals

Awarding to Lockheed Martin leverages their established expertise with the CH-53K program.
Focus on a technical data package is crucial for long-term program sustainment and future modifications.
The contract supports a critical defense asset, ensuring operational readiness.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The CH-53K is a heavy-lift helicopter, a significant platform within military aviation. The market for such specialized technical data packages is often concentrated among a few prime contractors due to the complexity and proprietary nature of the information. Comparable spending benchmarks would likely be found within other major defense aircraft development programs.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by 'ss: false' and 'sb: false'. Lockheed Martin is a large prime contractor. While subcontracting opportunities for small businesses may arise from this contract, the primary award is not directed towards them. The impact on the small business ecosystem is indirect, depending on Lockheed Martin's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee (CPFF) structure, requiring contractor reporting and government review of costs and progress. Transparency is limited due to the sole-source nature, but contract details and performance metrics should be available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CH-53K Helicopter Program
Naval Aviation Procurement
Defense Industrial Base Support
Technical Data Package Development
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award limits price competition.
Cost-plus-fixed-fee contract type carries risk of cost overruns.
Lack of transparency in pricing due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to LOCKHEED MARTIN CORPORATION. TDP NON-RECURRING ENGINEERING (NRE) ASSOCIATED WITH DELIVERING THE CH-53K MULTI-YEAR PROCUREMENT (MYP) TECHNICAL DATA PACKAGE (TDP).

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 $22.3 million.

What is the period of performance?

Start: 2025-10-01. End: 2028-09-29.

What is the historical spending by the Department of Defense on CH-53K Technical Data Packages?

Detailed historical spending specifically on CH-53K Technical Data Packages (TDPs) is not readily available in public databases. However, the CH-53K program itself has seen significant investment. For instance, the Multi-Year Procurement (MYP) phase, which this contract supports, represents a substantial commitment. The total program cost estimates have varied, but generally run into billions of dollars over its lifecycle. TDP development is a critical, albeit often less visible, component of such large-scale defense acquisitions. Without specific line items for TDPs in past budgets, it's challenging to provide a precise historical spending figure. Future spending on TDPs will be influenced by the program's sustainment phase, potential upgrades, and the need for revisions or updates to the technical documentation.

How does the cost of this TDP contract compare to similar contracts for other heavy-lift helicopters?

Direct comparison of this $22.3 million contract for the CH-53K TDP to similar contracts for other heavy-lift helicopters is difficult due to several factors. Firstly, the specific scope of work for TDPs can vary significantly between programs, encompassing different levels of detail, formats, and deliverables. Secondly, the competitive landscape for each program differs; this contract was sole-source, whereas others might have been competed. Thirdly, the maturity of the platform influences TDP costs; newer platforms often require more extensive initial development. Generally, TDP development for major defense platforms represents a significant investment, often in the tens of millions of dollars, especially when covering non-recurring engineering (NRE). Without access to proprietary contract details for comparable programs, a precise benchmark is elusive, but the awarded amount appears consistent with the scale of investment required for a platform as complex as the CH-53K.

What are the specific risks associated with a Cost Plus Fixed Fee (CPFF) contract for TDP development?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for Technical Data Package (TDP) development is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. While the fee is fixed, the total cost is not. This can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total expenditure. For TDP development, which can involve unforeseen technical challenges and extensive engineering analysis, this structure requires robust government oversight to ensure costs remain reasonable and necessary. If the government's cost estimation or monitoring is inadequate, the total contract cost could exceed initial projections, leading to a less favorable outcome for taxpayers compared to a fixed-price contract.

What is Lockheed Martin's track record with the CH-53K program and similar TDP contracts?

Lockheed Martin Corporation is the prime contractor for the CH-53K King Stallion helicopter program, indicating a deep and established track record with this specific platform. They have been involved in its development, testing, and production phases. Their experience encompasses the complex engineering, manufacturing, and integration required for such a heavy-lift aircraft. Regarding Technical Data Packages (TDPs), large defense contractors like Lockheed Martin routinely develop and manage extensive technical documentation for their programs. This includes managing the creation, maintenance, and delivery of TDPs that detail the design, manufacturing processes, and maintenance procedures for complex systems. Their long-standing role as the CH-53K prime contractor suggests they possess the necessary expertise and institutional knowledge to fulfill this TDP contract effectively.

What are the implications of awarding this contract without competition for future sustainment and upgrades of the CH-53K?

Awarding the initial Technical Data Package (TDP) contract without competition to Lockheed Martin has several implications for the future sustainment and upgrades of the CH-53K. Firstly, it solidifies Lockheed Martin's position as the primary holder and manager of the program's technical data. This can create a barrier to entry for potential competitors seeking to offer sustainment or upgrade services in the future, as they would likely need to license or acquire data from Lockheed Martin. Secondly, it establishes a baseline for future contract negotiations. While future contracts might be competed, the incumbent's deep knowledge of the TDP and the system itself often provides a significant advantage. This could potentially lead to continued sole-source or limited-competition awards for sustainment and upgrade efforts, depending on the specific requirements and market dynamics.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1801 STATE RT 17 C, OWEGO, NY, 13827

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,309,643

Exercised Options: $22,309,643

Current Obligation: $22,309,643

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001923G0002

IDV Type: BOA

Timeline