DoD Awards $54.2M for UCA Production to Lockheed Martin, Boosting Navigation Systems
Contract Overview
Contract Amount: $54,207,213 ($54.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-14
End Date: 2028-01-13
Contract Duration: 1,035 days
Daily Burn Rate: $52.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: FY25 BLQ-10 TI-24 PRODUCTION ORDER - UCA
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $54.2 million to LOCKHEED MARTIN CORPORATION for work described as: FY25 BLQ-10 TI-24 PRODUCTION ORDER - UCA Key points: 1. Significant award for critical navigation and guidance systems. 2. Sole awardee is Lockheed Martin, a major defense contractor. 3. Potential for cost overruns given the Cost Plus Incentive Fee contract type. 4. Spending aligns with the IT and Defense sectors.
Value Assessment
Rating: fair
The Cost Plus Incentive Fee (CPIF) contract type allows for shared savings if costs are below target, but also carries risk of cost overruns if performance is poor. The award amount of $54.2M for a 1035-day duration needs further analysis against similar production orders for UCA systems to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery and how the incentive fee structure was determined are not provided, which could impact the final cost to taxpayers.
Taxpayer Impact: The competitive nature of the award is positive for taxpayer value. However, the CPIF contract type introduces potential for increased costs if not managed effectively.
Public Impact
Enhances national security through advanced navigation and guidance systems. Supports a major defense contractor, potentially impacting industry employment. Ensures the availability of critical components for naval operations. The long-term delivery schedule (2025-2028) indicates sustained demand. Potential for technological advancements within the UCA system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type.
- Sole awardee for this specific production order.
- Long contract duration (1035 days).
Positive Signals
- Awarded under full and open competition.
- Addresses critical defense needs.
- Supports a well-established defense contractor.
Sector Analysis
This award falls within the Defense sector, specifically related to IT and systems manufacturing for naval applications. Benchmarks for similar UCA production orders would be necessary for a precise value assessment, but the scale suggests a significant investment in specialized equipment.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this specific production order. Further investigation would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of the Navy is the contracting agency, responsible for oversight. The use of a CPIF contract requires diligent monitoring of cost performance and achievement of incentives to ensure taxpayer funds are used efficiently.
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
- Cost Plus Incentive Fee contract type.
- Lack of detailed performance metrics for incentive fee.
- No explicit mention of small business participation.
- Potential for cost overruns without strong oversight.
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 $54.2 million to LOCKHEED MARTIN CORPORATION. FY25 BLQ-10 TI-24 PRODUCTION ORDER - UCA
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 $54.2 million.
What is the period of performance?
Start: 2025-03-14. End: 2028-01-13.
What is the target cost and incentive structure for this CPIF contract, and how does it compare to industry standards for similar UCA production?
The provided data does not specify the target cost or the exact incentive fee structure. Understanding these details is crucial for assessing the potential for cost savings or overruns. Industry standards for similar UCA production contracts would serve as a benchmark to evaluate the fairness of the negotiated terms and the potential effectiveness of the incentive mechanism in driving cost efficiency.
What are the specific performance metrics tied to the incentive fee, and what are the risks associated with Lockheed Martin not meeting these metrics?
The data does not detail the specific performance metrics linked to the incentive fee. These metrics typically relate to factors like delivery schedule adherence, quality standards, or technological performance. Risks associated with not meeting these metrics could include reduced profit for the contractor, potential penalties, or delays in system deployment, ultimately impacting naval readiness and potentially increasing overall program costs if corrective actions are required.
How does the per-unit cost of this UCA production order compare to previous or similar orders, considering inflation and technological advancements?
A direct per-unit cost comparison is not possible with the given data. The total award amount and duration are provided, but not the quantity of units. To assess value, one would need to know the number of UCA units produced under this order and compare their cost against historical data, adjusting for inflation and any incorporated technological upgrades to determine if the current pricing is competitive and reflects efficient production.
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: $54,207,213
Exercised Options: $54,207,213
Current Obligation: $54,207,213
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: 2025-03-14
Current End Date: 2028-01-13
Potential End Date: 2028-01-13 00:00:00
Last Modified: 2025-07-24
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)