DoD's $102.8M TRIDENT II Navigation Subsystem Contract Awarded to Lockheed Martin Lacks Competition
Contract Overview
Contract Amount: $102,809,806 ($102.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-10-01
End Date: 2017-06-14
Contract Duration: 2,813 days
Daily Burn Rate: $36.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: TRIDENT II NAVIGATION SUBSYSTEM
Place of Performance
Location: UNIONDALE, NASSAU County, NEW YORK, 11553
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $102.8 million to LOCKHEED MARTIN CORPORATION for work described as: TRIDENT II NAVIGATION SUBSYSTEM Key points: 1. The contract for the TRIDENT II Navigation Subsystem was awarded to Lockheed Martin Corporation. 2. This significant award of over $102 million highlights a lack of competitive bidding. 3. The sole-source nature raises concerns about potential overpricing and reduced innovation. 4. Engineering services in the defense sector often involve complex, specialized requirements.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult, especially given the sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible price or value.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract (2009-2017) suggests a critical, ongoing need for this subsystem. The sole-source award could stifle innovation in navigation subsystem technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Awarded to a major defense contractor
- Addresses critical defense need
Sector Analysis
This contract falls within the Engineering Services sector for the Department of Defense. Defense engineering services are often characterized by high complexity, specialized knowledge, and significant R&D investment, which can sometimes justify sole-source awards, but competition is still preferred.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, which is responsible for overseeing contract performance and ensuring compliance. However, the sole-source nature limits the agency's ability to ensure competitive pricing.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited innovation incentives
- Dependency on a single contractor
- Reduced transparency in pricing
Tags
engineering-services, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.8 million to LOCKHEED MARTIN CORPORATION. TRIDENT II NAVIGATION SUBSYSTEM
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $102.8 million.
What is the period of performance?
Start: 2009-10-01. End: 2017-06-14.
What specific factors necessitated a sole-source award for the TRIDENT II Navigation Subsystem, and were alternatives explored?
Sole-source awards are typically justified by unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For the TRIDENT II Navigation Subsystem, the justification likely stems from the highly specialized and classified nature of Trident missile systems, requiring specific expertise and integration with existing platforms. While alternatives might have been explored, the unique requirements of strategic weapon systems often limit viable sources.
How does the Cost Plus Incentive Fee (CPIF) structure impact cost control and contractor performance in this sole-source defense contract?
A CPIF contract aims to incentivize the contractor to control costs by sharing savings or cost overruns with the government. However, in a sole-source scenario, the baseline cost targets are set without competitive pressure, potentially inflating the initial estimates. While the incentive fee mechanism can encourage efficiency, the government's leverage in negotiating targets and managing performance is reduced compared to a competitive environment.
What is the long-term strategic implication of awarding critical defense subsystems like the TRIDENT II Navigation Subsystem on a sole-source basis?
Sole-source awards for critical defense systems can lead to a dependency on a single contractor, potentially reducing overall defense industrial base resilience and innovation. It may also create a barrier for new entrants and specialized small businesses seeking to contribute to national security. Over time, this can impact the government's ability to secure competitive pricing and access cutting-edge technologies.
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 INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 55 CHARLES LINDBERGH BLVD, UNIONDALE, NY, 11553
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $142,382,826
Exercised Options: $104,947,378
Current Obligation: $102,809,806
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-10-01
Current End Date: 2017-06-14
Potential End Date: 2017-06-14 00:00:00
Last Modified: 2025-07-07
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