DoD Awards $38.4M Lockheed Martin Contract for FMS EEFC Support
Contract Overview
Contract Amount: $38,417,930 ($38.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2029-09-24
Contract Duration: 2,191 days
Daily Burn Rate: $17.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BOA DELIVERY ORDER FOR EEFC IN SUPPORT OF FMS
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $38.4 million to LOCKHEED MARTIN CORPORATION for work described as: BOA DELIVERY ORDER FOR EEFC IN SUPPORT OF FMS Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on specialized navigation and guidance systems. 3. Long-term contract duration raises questions about sustained value. 4. Potential for limited competition due to specialized nature.
Value Assessment
Rating: fair
The contract value of $38.4 million over approximately 6 years is substantial. Without specific benchmarks for EEFC support for FMS, it's difficult to definitively assess pricing. However, given the sole-source nature, it warrants scrutiny against similar specialized defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competition.
Public Impact
Supports Foreign Military Sales (FMS), impacting international defense capabilities. Ensures critical navigation and guidance systems for military assets. Long contract duration suggests ongoing need for these specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Supports critical FMS requirements
- Awarded to established defense contractor
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this niche area is often characterized by high R&D costs and long product lifecycles, with significant consolidation among prime contractors.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific delivery order, suggesting limited opportunities for small business participation.
Oversight & Accountability
The Department of the Navy awarded this delivery order under a broader agreement. Oversight would typically involve contract management reviews to ensure performance and adherence to terms, especially given the sole-source nature.
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 competition and price discovery.
- Long contract duration may not reflect evolving technological needs.
- Lack of transparency on justification for sole-sourcing.
- Potential for cost overruns due to absence of competitive pressure.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.4 million to LOCKHEED MARTIN CORPORATION. BOA DELIVERY ORDER FOR EEFC IN SUPPORT OF FMS
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 $38.4 million.
What is the period of performance?
Start: 2023-09-25. End: 2029-09-24.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must document these justifications thoroughly. For this contract, the specific reasons for not competing it need to be examined to ensure it aligns with federal procurement regulations and best practices for taxpayer value.
How does the per-unit cost of EEFC support compare to similar systems or previous contracts?
Benchmarking the per-unit cost is crucial for assessing value, especially in sole-source situations. Without access to detailed cost breakdowns or comparable contract data for similar EEFC systems or FMS support, a precise comparison is difficult. However, the agency should have internal metrics or industry data to validate the reasonableness of the pricing.
What is the long-term strategic value and potential obsolescence risk of the systems supported by this contract?
The contract's duration of nearly six years necessitates an evaluation of the supported systems' strategic importance and the risk of technological obsolescence. If the systems are nearing the end of their lifecycle or if newer, more effective technologies are emerging, the long-term value of this investment could diminish, potentially leading to wasted taxpayer funds.
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: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002423R5118
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $48,130,930
Exercised Options: $38,417,930
Current Obligation: $38,417,930
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $4,075,597
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002421G5102
IDV Type: BOA
Timeline
Start Date: 2023-09-25
Current End Date: 2029-09-24
Potential End Date: 2030-08-08 00:00:00
Last Modified: 2025-11-21
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