DoD Awards $728.5M Contract to Lockheed Martin for Navigation Systems, Full and Open Competition
Contract Overview
Contract Amount: $728,545,701 ($728.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-12-16
End Date: 2028-09-30
Contract Duration: 2,115 days
Daily Burn Rate: $344.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: G&C CONTRACT
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $728.5 million to LOCKHEED MARTIN CORPORATION for work described as: G&C CONTRACT Key points: 1. Significant award value of over $728 million for critical navigation systems. 2. Lockheed Martin, a major defense contractor, is the sole awardee. 3. The contract spans over five years, indicating a long-term need. 4. Firm Fixed Price contract type aims to control costs. 5. No small business participation noted in the award details.
Value Assessment
Rating: good
The contract value of $728.5 million for navigation systems appears reasonable given the duration and the nature of the equipment. Benchmarking against similar large-scale defense system contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages multiple bidders to offer their best pricing and technical solutions.
Public Impact
Enhances national security through advanced navigation capabilities for the Navy. Supports technological advancement in the defense sector. Potential for job creation within Lockheed Martin and its supply chain. Ensures operational readiness for naval forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to scope creep if not managed tightly.
Positive Signals
- Firm Fixed Price contract.
- Full and open competition.
- Awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on advanced navigation and guidance systems. Spending in this area is critical for maintaining military technological superiority and operational effectiveness.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Future opportunities may exist within Lockheed Martin's supply chain, but direct subcontracting is not evident here.
Oversight & Accountability
The Department of the Navy's oversight will be crucial in managing this long-term, high-value contract to ensure performance, cost control, and adherence to specifications throughout its duration.
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.
- Sole awardee to a large corporation.
- No explicit small business participation.
- Potential for technological obsolescence over contract life.
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 $728.5 million to LOCKHEED MARTIN CORPORATION. G&C CONTRACT
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 $728.5 million.
What is the period of performance?
Start: 2022-12-16. End: 2028-09-30.
What specific technological advancements does this contract aim to procure, and how do they compare to current industry standards?
The contract is for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. While specific details are proprietary, it likely involves upgrades or new systems to enhance precision, reliability, and potentially integrate with other advanced platforms. Benchmarking against publicly available R&D in navigation technology can offer some insight, but the true advancement lies in the specific capabilities delivered to the Navy.
What are the potential risks associated with a five-year firm fixed-price contract for complex navigation systems?
Risks include potential for cost overruns if initial estimates were inaccurate, contractor performance issues impacting delivery schedules, and technological obsolescence if the systems become outdated before the contract ends. The firm fixed-price nature shifts much of the cost risk to the contractor, but performance failures can still impact mission readiness and require costly remediation or replacement.
How does the $728.5 million award compare to historical spending on similar navigation systems by the Department of Defense?
Without specific historical data for comparable systems, a direct comparison is difficult. However, the value is substantial, reflecting the complexity and critical nature of advanced navigation technology for naval operations. It suggests a significant investment in maintaining or upgrading the fleet's navigational capabilities, aligning with broader defense modernization trends.
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: N0002420R6420
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $737,169,089
Exercised Options: $737,169,089
Current Obligation: $728,545,701
Subaward Activity
Number of Subawards: 270
Total Subaward Amount: $58,414,811
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-12-16
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-12-17
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