DoD Awards $8.3M PT&E Contract to Lockheed Martin for Naval Systems
Contract Overview
Contract Amount: $8,327,321 ($8.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-30
End Date: 2026-09-30
Contract Duration: 457 days
Daily Burn Rate: $18.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: PREVIEW TEST AND EVALUATION (PT&E)FOR EARLY START
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $8.3 million to LOCKHEED MARTIN CORPORATION for work described as: PREVIEW TEST AND EVALUATION (PT&E)FOR EARLY START Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on specialized naval system testing and evaluation. 3. Potential for limited competition due to specialized nature. 4. Spending aligns with defense sector R&D and acquisition cycles.
Value Assessment
Rating: fair
The contract type is Cost No Fee, which is unusual for a delivery order of this size. The award amount of $8.3M for a 457-day duration needs further scrutiny against similar PT&E contracts for naval systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is marked as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition award. This limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether the government secured the best possible price for these specialized testing and evaluation services.
Public Impact
Naval readiness and technological advancement may be impacted by this specialized testing. Taxpayers may be overpaying due to the limited competition. The specific systems being tested are not detailed, limiting public understanding of the investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost No Fee contract type
- Lack of detailed justification for limited competition
Positive Signals
- Award to established defense contractor
- Supports critical naval systems development
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing and testing of advanced navigation and guidance systems for the Navy. Spending benchmarks for similar specialized testing and evaluation contracts are highly variable and depend on system complexity.
Small Business Impact
The award went to Lockheed Martin Corporation, a major defense contractor. There is no indication of small business participation in this specific delivery order, which is common for large, specialized contracts.
Oversight & Accountability
Further oversight is needed to understand the justification for the limited competition and the rationale behind the Cost No Fee contract structure for this delivery order.
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
- Limited competition justification unclear
- Cost No Fee contract structure
- Potential for cost overruns without contractor profit incentive
- Lack of transparency on specific systems being tested
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.3 million to LOCKHEED MARTIN CORPORATION. PREVIEW TEST AND EVALUATION (PT&E)FOR EARLY START
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 $8.3 million.
What is the period of performance?
Start: 2025-06-30. End: 2026-09-30.
What is the specific justification for limiting competition on this Preview Test and Evaluation contract?
The contract is marked as 'NOT AVAILABLE FOR COMPETITION'. A detailed justification is required to understand why only Lockheed Martin Corporation was considered suitable for this specific Preview Test and Evaluation (PT&E) for Early Start contract. This could be due to proprietary technology, unique capabilities, or prior development work that makes competition impractical or cost-prohibitive.
How does the 'Cost No Fee' contract type impact the government's risk and the contractor's incentive for cost control?
A 'Cost No Fee' contract means the contractor is reimbursed for allowable costs but receives no fee or profit. This shifts the financial risk entirely to the government, as the contractor has less incentive to control costs. The government bears all costs incurred, regardless of the outcome, making robust oversight crucial.
What is the expected impact of this PT&E contract on the effectiveness of future naval systems?
This contract is intended to support the Preview Test and Evaluation (PT&E) for Early Start, suggesting it's a critical phase in validating the performance and reliability of new or upgraded naval systems. Successful completion should enhance the effectiveness, safety, and operational readiness of these systems, contributing to overall naval capability.
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: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002421R5109
Pricing Type: COST NO FEE (S)
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: $29,276,461
Exercised Options: $29,276,461
Current Obligation: $8,327,321
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0002423D5109
IDV Type: IDC
Timeline
Start Date: 2025-06-30
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-22
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