DoD awards $15.5M for Expendable Mine Neutralization System, with Lockheed Martin as prime contractor
Contract Overview
Contract Amount: $15,489,079 ($15.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2007-10-19
End Date: 2016-04-05
Contract Duration: 3,091 days
Daily Burn Rate: $5.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: EXPENDABLE MINE NEUTRALIZATION SYSTEM EDM #1 AND EMNS ENGINEERING SERVICES
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $15.5 million to LOCKHEED MARTIN CORPORATION for work described as: EXPENDABLE MINE NEUTRALIZATION SYSTEM EDM #1 AND EMNS ENGINEERING SERVICES Key points: 1. The contract value is $15.5 million for the Expendable Mine Neutralization System (EMNS) and related engineering services. 2. Lockheed Martin Corporation is the sole contractor for this award. 3. The contract was awarded under full and open competition. 4. The contract duration was 3091 days, indicating a long-term project.
Value Assessment
Rating: fair
The contract value of $15.5 million over approximately 8.5 years suggests a moderate annual spend. Benchmarking against similar complex defense systems would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the definitive contract type and long duration may have influenced price discovery over time.
Taxpayer Impact: Taxpayer funds are utilized for the procurement of critical defense equipment and services, with competition aimed at achieving best value.
Public Impact
Enhances naval capabilities in mine neutralization, contributing to maritime security. Supports advanced technology development in defense systems. Represents a significant investment in specialized military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns or scope creep.
- Lack of specific performance metrics makes it difficult to assess effectiveness.
- Sole contractor for engineering services could limit future innovation or cost reduction.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Addresses a critical need for mine neutralization capabilities.
- Contract includes engineering services, indicating a focus on system sustainment and improvement.
Sector Analysis
This contract falls within the defense sector, specifically focusing on naval systems and instrumentation. Spending in this area is driven by national security requirements and technological advancements in military hardware.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corporation, a large business. There is no explicit information on small business participation in this specific contract award.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program management reviews and contract performance monitoring to ensure compliance and value.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Cost-plus contract type.
- Lack of specific performance metrics.
- Potential for cost overruns.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to LOCKHEED MARTIN CORPORATION. EXPENDABLE MINE NEUTRALIZATION SYSTEM EDM #1 AND EMNS ENGINEERING SERVICES
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 $15.5 million.
What is the period of performance?
Start: 2007-10-19. End: 2016-04-05.
What was the specific performance criteria that led to the selection of Lockheed Martin Corporation under full and open competition?
The provided data does not detail the specific performance criteria used in the selection process. Full and open competition implies that multiple bidders were considered, and the award was likely based on a combination of technical merit, past performance, and price. Further analysis of the solicitation documents would be required to ascertain the exact evaluation factors.
How does the cost-plus-incentive-fee contract type impact the risk for taxpayers given the long duration?
Cost-plus-incentive-fee contracts share cost risks between the government and contractor, with incentives for meeting cost, schedule, and performance targets. For a long-duration contract like this (3091 days), the incentive structure is crucial. If targets are well-defined and achievable, it can drive efficiency. However, poorly defined targets or significant unforeseen challenges could lead to increased costs for the government.
What is the expected operational effectiveness and longevity of the Expendable Mine Neutralization System (EMNS) procured under this contract?
The data does not provide details on the expected operational effectiveness or longevity of the EMNS. The contract covers system procurement and engineering services, suggesting ongoing development and support. Assessing effectiveness would require access to performance reports, operational testing results, and the system's intended mission profile.
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: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002407R6104
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 497 ELECTRONICS PKWY # 5 # BLD, LIVERPOOL, NY, 13088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,721,310
Exercised Options: $18,031,306
Current Obligation: $15,489,079
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-10-19
Current End Date: 2016-04-05
Potential End Date: 2016-04-05 00:00:00
Last Modified: 2016-04-20
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