DoD awards $188M contract to Lockheed Martin for Trident II missile services
Contract Overview
Contract Amount: $10,899,654 ($10.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2005-05-05
End Date: 2008-09-30
Contract Duration: 1,244 days
Daily Burn Rate: $8.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200508!00A209!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0039 !A!N! !N! ! !20050505!20060331!188160782!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !1111 LOCKHEED MARTIN WAY !SUNNYVALE !CA!94089!77000!085!06!SUNNYVALE !SANTA CLARA !CALIFORNIA!+000011421796!N!N!000000000000!H914!OTHER QUALITY CNTL SVCS/GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541330!E! !3! ! ! ! ! !20200930!B! ! !N!Z!C!U!U!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! !1700!N00030!0001! !!TAS::17 1804::TAS!
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94088
Plain-Language Summary
Department of Defense obligated $10.9 million to LOCKHEED MARTIN CORPORATION for work described as: 200508!00A209!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0039 !A!N! !N! ! !20050505!20060331!188160782!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !1111 LOCKHEED MARTIN WAY !SUNNYVALE !CA!94089!77000!085!06!SUNNYVALE !SANT… Key points: 1. The contract is for engineering and quality control services related to the Trident II missile system. 2. Lockheed Martin Corporation, a major defense contractor, is the sole recipient of this award. 3. The contract was not competed, raising potential concerns about price discovery and value. 4. The IT sector is not directly involved; this falls under Defense/Missile Systems.
Value Assessment
Rating: questionable
The contract value is $188,160,782. Without competitive bidding, it's difficult to assess if this price is optimal. Benchmarking against similar sole-source missile system contracts would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term sustainment of critical defense systems relies on effective and efficient contracting. Oversight is crucial to ensure the government receives fair value in sole-source procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established prime contractor
- Supports critical defense system
Sector Analysis
This contract falls within the Defense sector, specifically for missile and space systems. Spending benchmarks for similar sole-source engineering services for strategic weapon systems are often high, but competition is typically sought where feasible.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved as subcontractors in this specific contract award.
Oversight & Accountability
Given the sole-source nature of this award, robust oversight is essential to ensure that the pricing is fair and reasonable and that the services provided meet all requirements. The Department of the Navy's contracting officers are responsible for this oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in cost justification.
- Long contract duration (over 4 years).
- High contract value.
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.9 million to LOCKHEED MARTIN CORPORATION. 200508!00A209!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0039 !A!N! !N! ! !20050505!20060331!188160782!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !1111 LOCKHEED MARTIN WAY !SUNNYVALE !CA!94089!77000!085!06!SUNNYVALE !SANTA CLARA !CALIFORNIA!+000011421796!N!N!000000000000!H914!OTHER QUALITY CNTL SVCS/GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541330!E! !3! ! ! ! ! !202
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 $10.9 million.
What is the period of performance?
Start: 2005-05-05. End: 2008-09-30.
What is the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A formal justification for sole-source procurement, such as the existence of only one responsible source or urgent and compelling circumstances, would typically be required by federal acquisition regulations. Without this justification, it's difficult to assess the necessity of bypassing competition.
How does the cost of this contract compare to similar sole-source contracts for missile system support?
Benchmarking this $188M contract against similar sole-source contracts for strategic missile system support is challenging without access to detailed cost breakdowns and specific contract terms. However, sole-source contracts inherently carry a higher risk of inflated pricing due to the lack of competitive pressure. A thorough review would require comparing scope, duration, and specific services.
What mechanisms are in place to ensure effective performance and value for money on this sole-source contract?
Effective performance and value on sole-source contracts rely heavily on stringent government oversight, clear performance metrics, and potentially independent cost analyses. The Department of the Navy would be responsible for monitoring Lockheed Martin's performance against contract requirements and ensuring that the services delivered are necessary and appropriately priced, despite the absence of competition.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1111 LOCKHEED MARTIN WAY, SUNNYVALE, CA, 94089
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-05-05
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2020-05-21
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