DoD Awards $17.8M for Seawolf Mod Kits to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $17,824,462 ($17.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-28
End Date: 2026-02-06
Contract Duration: 1,289 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: TI22 SEAWOLF MOD KIT
Place of Performance
Location: SYRACUSE, ONONDAGA County, NEW YORK, 13221
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $17.8 million to LOCKHEED MARTIN CORPORATION for work described as: TI22 SEAWOLF MOD KIT Key points: 1. Contract awarded to a single, large defense contractor. 2. Cost-plus incentive fee contract type suggests potential for cost overruns. 3. Long performance period (over 3 years) may indicate complex requirements. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee (CPIF) type, which can lead to higher costs if not managed tightly. The award amount of $17.8M for a modification kit over nearly 4 years requires careful monitoring to ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific nature of modification kits for advanced platforms like the Seawolf submarine might inherently limit the number of capable bidders.
Taxpayer Impact: The competitive award process aims to secure fair pricing, but the CPIF structure necessitates robust oversight to protect taxpayer funds from excessive costs.
Public Impact
Enhances critical submarine capabilities for national defense. Supports advanced naval technology and maintenance. Impacts the operational readiness of the Seawolf class submarines.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPIF contract type
- Long performance duration
- No small business involvement
Positive Signals
- Full and open competition
- Awarded to a prime defense contractor
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on advanced naval systems. Spending benchmarks for similar complex modification kits can vary widely based on technological sophistication and platform integration.
Small Business Impact
There is no indication of small business participation in this contract. Given the specialized nature of Seawolf submarine modifications, it is possible that the prime contractor, Lockheed Martin, is the only entity with the necessary expertise and security clearances.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The CPIF contract type requires diligent monitoring of costs and performance to ensure accountability and prevent contractor overreach.
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 CPIF structure.
- Limited competition due to specialized nature of the product.
- Long performance period increases exposure to changing requirements or economic factors.
- Lack of small business participation may indicate market concentration.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.8 million to LOCKHEED MARTIN CORPORATION. TI22 SEAWOLF MOD KIT
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 $17.8 million.
What is the period of performance?
Start: 2022-07-28. End: 2026-02-06.
What specific performance improvements or cost savings are expected from these Seawolf modification kits?
The specific performance improvements and cost savings are not detailed in the provided data. However, modification kits typically aim to upgrade outdated systems, enhance operational effectiveness, or extend the service life of the platform. Further analysis would require access to the contract's SOW and performance metrics to assess the realized value against the CPIF structure.
What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this modification?
The primary risks with a CPIF contract include potential cost overruns if the incentive targets are not well-defined or achievable, leading to increased expenditure beyond initial estimates. There's also a risk of the contractor prioritizing profit over optimal cost efficiency. Effective government oversight is crucial to mitigate these risks by closely monitoring costs and performance against agreed-upon targets.
How does this contract contribute to the overall effectiveness and modernization of the US submarine fleet?
This contract directly contributes to the effectiveness and modernization of the Seawolf class submarines by providing necessary modification kits. These kits likely incorporate technological upgrades or address obsolescence, ensuring the submarines maintain their operational capabilities and strategic advantage. This investment supports the long-term readiness and technological superiority of the U.S. submarine fleet.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002418R6200
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $17,824,462
Exercised Options: $17,824,462
Current Obligation: $17,824,462
Subaward Activity
Number of Subawards: 55
Total Subaward Amount: $9,448,057
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002419D6200
IDV Type: IDC
Timeline
Start Date: 2022-07-28
Current End Date: 2026-02-06
Potential End Date: 2026-02-06 00:00:00
Last Modified: 2025-05-06
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