DoD's $250M Lockheed Martin Contract for TB-37 Production Array Under Full and Open Competition
Contract Overview
Contract Amount: $249,537,990 ($249.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2013-09-26
End Date: 2023-02-24
Contract Duration: 3,438 days
Daily Burn Rate: $72.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: TB-37 PRODUCTION ARRAY
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $249.5 million to LOCKHEED MARTIN CORPORATION for work described as: TB-37 PRODUCTION ARRAY Key points: 1. Significant investment in advanced navigation systems for the Navy. 2. Lockheed Martin is the sole awardee, indicating specialized capabilities. 3. Potential for cost overruns given the fixed-price incentive structure. 4. The contract spans a decade, suggesting long-term program needs.
Value Assessment
Rating: fair
The contract value of $249.5 million over 10 years is substantial. Benchmarking against similar complex defense systems is difficult without more granular data, but the duration and fixed-price incentive structure suggest potential for price escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the single award to Lockheed Martin suggests limited bidders with the necessary technical expertise for this specific system.
Taxpayer Impact: Taxpayer funds are supporting advanced defense technology. While competition was sought, the final price reflects the specialized nature of the product and the contractor's capabilities.
Public Impact
Enhances naval operational capabilities through advanced navigation and detection systems. Supports a major defense contractor, contributing to jobs and technological development. Represents a significant portion of the federal budget allocated to defense procurement. Long contract duration implies sustained reliance on this specific technology.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Fixed-price incentive contract can lead to higher costs if targets are missed.
- Long contract duration increases exposure to technological obsolescence.
- Sole awardee may limit future competitive pricing opportunities.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense infrastructure.
- Contractor has a strong track record in defense systems.
Sector Analysis
This contract falls within the defense sector, specifically in the manufacturing of advanced navigation and guidance systems. Spending in this area is driven by national security needs and technological advancements, with significant government investment.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no explicit indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The contract is managed by the Department of the Navy, part of the Department of Defense. Oversight would involve monitoring performance, cost controls, and adherence to contract terms throughout the 10-year period.
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
- Potential for cost overruns due to fixed-price incentive structure.
- Risk of technological obsolescence over the 10-year contract period.
- Limited competition for specialized defense systems can impact long-term pricing.
- Dependence on a single prime contractor for critical components.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $249.5 million to LOCKHEED MARTIN CORPORATION. TB-37 PRODUCTION ARRAY
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 $249.5 million.
What is the period of performance?
Start: 2013-09-26. End: 2023-02-24.
What is the projected cost per unit for the TB-37 Production Array, and how does it compare to industry benchmarks?
The provided data does not specify a per-unit cost for the TB-37 Production Array. The total contract value is $249.5 million over 3438 days. Without a defined quantity or unit breakdown, a direct per-unit cost benchmark against industry standards is not feasible from this information alone.
What are the specific performance metrics tied to the incentive portion of the contract, and what are the potential cost implications if these are not met?
The data indicates a 'Fixed Price Incentive' (FPI) contract type, but the specific performance metrics and their associated incentive/disincentive clauses are not detailed. Under an FPI contract, the final price is adjusted based on performance outcomes, meaning higher costs for the government if targets are missed or lower costs if targets are exceeded.
How does the technological sophistication of the TB-37 Production Array compare to current and emerging alternatives in the market?
The provided data identifies the product as 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' While advanced, the specific technological edge or obsolescence risk of the TB-37 array compared to market alternatives is not detailed. The 10-year duration suggests it meets current needs, but future technological shifts could impact its long-term relevance.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: N0002412R6230
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
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: $270,119,554
Exercised Options: $269,124,344
Current Obligation: $249,537,990
Actual Outlays: $13,394,231
Subaward Activity
Number of Subawards: 181
Total Subaward Amount: $499,986,318
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-26
Current End Date: 2023-02-24
Potential End Date: 2023-02-24 00:00:00
Last Modified: 2025-08-22
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