DoD Awards $27.5M to Lockheed Martin for Naval Aviation Logistics Support
Contract Overview
Contract Amount: $27,504,718 ($27.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-12-28
End Date: 2027-07-31
Contract Duration: 3,502 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AWS INTEGRATED LOGISTICS SUPPORT AND SUSTAINMENT FOR ACB 16/TI-12H AND LEGACY BASELINES
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $27.5 million to LOCKHEED MARTIN CORPORATION for work described as: AWS INTEGRATED LOGISTICS SUPPORT AND SUSTAINMENT FOR ACB 16/TI-12H AND LEGACY BASELINES Key points: 1. Significant contract awarded to a major defense contractor, Lockheed Martin. 2. Focus on integrated logistics and sustainment for naval aviation systems. 3. Contract duration extends to July 2027, indicating long-term support needs. 4. The North American Industry Classification System (NAICS) code 334511 points to specialized instrument manufacturing.
Value Assessment
Rating: fair
The contract value of $27.5 million over nearly 10 years suggests a substantial investment. Without specific benchmarks for similar integrated logistics support contracts for naval aviation, a precise value assessment is difficult. However, the duration and scope imply a significant, but potentially fair, price for sustained operational readiness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent. The justification for a sole-source award would be critical to understanding if this was the only viable option.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued operational readiness of critical naval aviation assets. Supports advanced technology systems within the Department of the Navy. Potential impact on the supply chain for specialized aerospace components. Long-term sustainment contracts can affect budget predictability for the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration may not reflect evolving technological needs.
- Lack of small business participation noted.
Positive Signals
- Provides essential logistics and sustainment for critical naval assets.
- Long-term contract ensures stability and predictability for support.
- Award to a prime contractor with established expertise.
Sector Analysis
The defense sector, particularly naval aviation, requires extensive and specialized logistics support. Contracts like this, focused on sustainment, are crucial for maintaining the readiness of complex weapon systems. Spending benchmarks for similar integrated logistics support contracts are often proprietary but typically represent a significant portion of the total system acquisition cost.
Small Business Impact
The data indicates no specific small business participation in this contract. Given the prime contractor is Lockheed Martin, it's possible that small businesses may be involved as subcontractors, but this is not explicitly detailed in the provided information. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The 'Cost Plus Fixed Fee' (CPFF) contract type requires careful monitoring by the agency to ensure costs remain reasonable and the fixed fee is justified. The long duration necessitates ongoing performance reviews and accountability measures.
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
- Sole-source award limits competitive pricing.
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Long contract duration may not adapt to future technological changes.
- Lack of transparency on small business subcontracting.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to LOCKHEED MARTIN CORPORATION. AWS INTEGRATED LOGISTICS SUPPORT AND SUSTAINMENT FOR ACB 16/TI-12H AND LEGACY BASELINES
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 $27.5 million.
What is the period of performance?
Start: 2017-12-28. End: 2027-07-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award is critical for understanding the necessity of this procurement method. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Without the specific justification, it's difficult to assess if taxpayer funds were used efficiently or if competitive alternatives were overlooked.
How does the per-unit cost of sustainment for these specific naval aviation systems compare to industry benchmarks for similar platforms?
Assessing the per-unit cost of sustainment requires detailed data on the specific systems being supported and comparable industry benchmarks. Given the 'Cost Plus Fixed Fee' structure, the agency's oversight is crucial in managing these costs. Without access to proprietary cost data or detailed benchmark studies for these particular naval aviation assets, it is challenging to definitively state if the pricing is optimal or if there is room for cost savings through negotiation or competition.
What are the key performance indicators (KPIs) for this contract, and how is Lockheed Martin's performance being measured to ensure effectiveness and value for money?
Effective oversight of this contract relies on clearly defined Key Performance Indicators (KPIs) that measure Lockheed Martin's performance in providing integrated logistics support and sustainment. These KPIs should align with naval readiness objectives and include metrics for response times, parts availability, system uptime, and overall cost efficiency. Regular performance reviews and audits by the Department of the Navy are essential to ensure the contractor is meeting its obligations and delivering value for the taxpayer's investment.
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: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002418R5407
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
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: $89,627,045
Exercised Options: $48,195,693
Current Obligation: $27,504,718
Actual Outlays: $1,393,714
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $7,736,957
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-12-28
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2024-05-06
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