DoD Awards $86.7M for TRIDENT II (D5) Navigation Subsystem to Lockheed Martin
Contract Overview
Contract Amount: $86,748,228 ($86.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-10-01
End Date: 2013-09-30
Contract Duration: 730 days
Daily Burn Rate: $118.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: US/UK TRIDENT (D5) NAVIGATION SUBSYSTEM
Place of Performance
Location: UNIONDALE, NASSAU County, NEW YORK, 11553
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $86.7 million to LOCKHEED MARTIN CORPORATION for work described as: US/UK TRIDENT (D5) NAVIGATION SUBSYSTEM Key points: 1. Significant investment in critical defense technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Engineering services sector sees substantial contract value.
Value Assessment
Rating: questionable
The contract value of $86.7M for a 2-year period for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is fair and reasonable compared to market rates for similar complex defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for the TRIDENT II (D5) navigation subsystem.
Public Impact
Ensures the continued operational readiness of the US and UK TRIDENT II (D5) ballistic missile submarines. Supports advanced engineering and technical services for a critical national security asset. Highlights reliance on a single contractor for specialized defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation indicated
Positive Signals
- Critical defense system support
- Long-term contract for essential services
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense systems. Spending in this area is often high due to the specialized nature and critical requirements of military technology.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award. This suggests that the prime contractor, Lockheed Martin, is handling the entire scope of work, potentially missing opportunities for small business subcontracting.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. However, the sole-source nature and cost-plus contract type warrant close scrutiny to ensure efficient use of funds and prevent potential waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of small business participation noted.
- High contract value warrants close oversight.
- Potential for contractor lock-in due to specialized nature of the system.
Tags
engineering-services, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $86.7 million to LOCKHEED MARTIN CORPORATION. US/UK TRIDENT (D5) 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 $86.7 million.
What is the period of performance?
Start: 2011-10-01. End: 2013-09-30.
What is the justification for the sole-source award of this critical navigation subsystem contract?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For complex defense systems like the TRIDENT II (D5) navigation subsystem, this could be due to proprietary technology, unique capabilities, or existing integration with other systems that only the incumbent contractor possesses.
What are the potential risks associated with a Cost Plus Fixed Fee contract for this system?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks of cost overruns. While the contractor receives a fixed fee, they are reimbursed for actual costs incurred. This can incentivize less cost-conscious behavior, as the contractor's profit is fixed regardless of the final cost, potentially leading to higher overall expenditure for the government.
How will the effectiveness of the navigation subsystem be measured and ensured under this contract?
Effectiveness is typically measured through stringent testing, performance metrics, and adherence to technical specifications outlined in the contract. The Defense Contract Management Agency (DCMA) would likely monitor progress, conduct quality assurance checks, and ensure deliverables meet the required standards for operational readiness and reliability of the TRIDENT II (D5) system.
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
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: $92,715,318
Exercised Options: $86,748,228
Current Obligation: $86,748,228
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $439,971
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-10-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2023-08-24
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