DoD awards $153.5M to Lockheed Martin for Navigation Systems, facing full and open competition
Contract Overview
Contract Amount: $15,355,001 ($15.4M)
Contractor: Lockheed Martin Sippican, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-09-10
End Date: 2010-10-31
Contract Duration: 2,973 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: MARION, PLYMOUTH County, MASSACHUSETTS, 02738
Plain-Language Summary
Department of Defense obligated $15.4 million to LOCKHEED MARTIN SIPPICAN, INC. for work described as: Key points: 1. Significant contract value of $153.5 million awarded. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. Risk appears moderate given the long contract duration and fixed-price nature. 4. Sector is Defense, specifically navigation and guidance systems.
Value Assessment
Rating: good
The contract value of $153.5 million over approximately 8 years suggests a substantial investment. Benchmarking against similar complex defense systems would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implying a competitive process was initiated after initial source exclusions. This method aims for competitive pricing.
Taxpayer Impact: The competitive bidding process is intended to ensure taxpayer funds are used efficiently for necessary defense equipment.
Public Impact
Ensures continued availability of critical navigation and guidance systems for defense operations. Supports advanced technological development in the defense sector. Impacts military readiness and operational effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2973 days) could lead to cost overruns if not managed effectively.
- Reliance on a single large contractor for critical systems.
Positive Signals
- Full and open competition aims for best value.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing navigation, guidance, and control systems. Spending in this area is crucial for military modernization and operational capabilities.
Small Business Impact
The data indicates the primary contractor is Lockheed Martin, a large business. There is no explicit information on small business participation in this specific award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), suggesting established oversight mechanisms are in place for defense contracts.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases potential for cost escalation.
- Potential for vendor lock-in if systems are highly specialized.
- Dependence on a single large prime contractor.
- Complexity of integrated navigation systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ma, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to LOCKHEED MARTIN SIPPICAN, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SIPPICAN, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.4 million.
What is the period of performance?
Start: 2002-09-10. End: 2010-10-31.
What specific technological advancements or capabilities are being procured with this $153.5 million award, and how do they compare to current industry standards?
The award is for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. While the exact technological advancements are not detailed, the contract's duration suggests a need for updated or advanced systems. Benchmarking against commercial or allied nation systems could reveal areas for improvement or highlight unique military requirements driving the procurement.
Given the 'exclusion of sources' clause, what were the initial reasons for excluding certain sources, and how did this impact the final competitive landscape?
The 'exclusion of sources' typically occurs when specific capabilities, security clearances, or proprietary technologies are required, limiting the pool of eligible bidders. While the contract eventually opened to full competition, the initial exclusion might have favored contractors with pre-existing relationships or specialized assets, potentially influencing the final price discovery and the range of innovative solutions considered.
How does the firm fixed price (FFP) contract structure mitigate risks associated with the long performance period (2973 days) for navigation systems?
A firm fixed price contract shifts the cost risk to the contractor, providing budget certainty for the government. For a long-duration contract like this, the FFP structure incentivizes the contractor to manage costs efficiently and accurately estimate expenses upfront. However, it also means the government might forgo potential savings if costs decrease significantly during the contract period.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 7 BARNABAS RD, MARION, MA, 09
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-09-10
Current End Date: 2010-10-31
Potential End Date: 2010-10-31 00:00:00
Last Modified: 2014-07-22
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