DoD's $1.04B TRIDENT II Fleet Training Contract Awarded to Lockheed Martin Without Competition
Contract Overview
Contract Amount: $1,038,049,058 ($1.0B)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2010-10-01
End Date: 2015-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $568.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: TRIDENT II FLEET TRAINING (U.K.)
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94088
Plain-Language Summary
Department of Defense obligated $1.04 billion to LOCKHEED MARTIN CORP for work described as: TRIDENT II FLEET TRAINING (U.K.) Key points: 1. Significant investment in strategic missile system training. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. High contract value necessitates robust oversight. 4. Focus on fleet readiness and operational effectiveness.
Value Assessment
Rating: questionable
The contract value of $1.04 billion over five years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or market rates for similar complex training services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was solicited. This limits price discovery and potentially leads to higher costs than if competition had been pursued.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may be paying a premium, as there was no market pressure to drive down costs.
Public Impact
Ensures continued readiness of the UK's nuclear deterrent. Supports highly specialized technical training for naval personnel. Potential for long-term reliance on a single contractor for critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- High contract value.
- Lack of transparency in pricing.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Supports critical national security function.
- Ensures readiness of strategic assets.
- Long-term relationship with experienced contractor.
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced missile systems and associated training. Spending in this area is typically high due to the complexity and strategic importance of the assets involved.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the sole-source nature and the prime contractor, it's unlikely small businesses played a direct role in the primary contract, though they may be subcontractors.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight from the Department of Defense to ensure cost reasonableness and performance standards are met throughout the contract's duration.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- High contract value
- Lack of competitive bidding
- Potential for cost escalation
- Limited transparency
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.04 billion to LOCKHEED MARTIN CORP. TRIDENT II FLEET TRAINING (U.K.)
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $1.04 billion.
What is the period of performance?
Start: 2010-10-01. End: 2015-09-30.
What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense should have conducted a price analysis, potentially using historical data, cost breakdowns, or independent government cost estimates, to validate the fairness and reasonableness of the negotiated price.
What are the risks associated with relying solely on Lockheed Martin for TRIDENT II fleet training over an extended period?
The primary risks include potential complacency from the contractor leading to reduced innovation or service quality, lack of competitive pressure on pricing which could lead to inflated costs, and a loss of institutional knowledge within the government regarding training system maintenance and evolution. This also creates a barrier for potential future competitors.
How will the effectiveness of this training program be measured to ensure optimal fleet readiness and taxpayer value?
Effectiveness should be measured through key performance indicators (KPIs) tied to fleet readiness metrics, such as successful mission simulations, trainee proficiency rates, system uptime, and incident reduction. Regular performance reviews, independent assessments, and feedback loops involving naval command will be crucial to ensure the training program delivers the intended operational outcomes and justifies the significant investment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1111 LOCKHEED MARTIN WAY BLDG 157, SUNNYVALE, CA, 94089
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,066,862,397
Exercised Options: $1,066,395,613
Current Obligation: $1,038,049,058
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $167,691,328
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-10-01
Current End Date: 2015-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2024-10-02
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