DoD's $47M Lockheed Martin Contract for NWS System Equipment Lacked Competition
Contract Overview
Contract Amount: $47,071,597 ($47.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2012-08-02
End Date: 2018-09-28
Contract Duration: 2,248 days
Daily Burn Rate: $20.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NWS SYSTEM EQUIPMENT (OPN, COMPLETION), NWS SUSTAINMENT SPARES (OMN, COMPLETION), NWS RESEARCH&DEVELOPMENT (RDT&E)
Place of Performance
Location: KINGS BAY, CAMDEN County, GEORGIA, 31547
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $47.1 million to LOCKHEED MARTIN CORP for work described as: NWS SYSTEM EQUIPMENT (OPN, COMPLETION), NWS SUSTAINMENT SPARES (OMN, COMPLETION), NWS RESEARCH&DEVELOPMENT (RDT&E) Key points: 1. Contract awarded to Lockheed Martin Corp for National Weather Service (NWS) equipment and sustainment. 2. Significant spending of $47M over 6 years, primarily for system equipment and sustainment spares. 3. The contract was not competed, raising questions about price discovery and potential value. 4. The sector is primarily IT and Defense-related, supporting naval operations.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar NWS equipment contracts is challenging without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to achieve the best value.
Taxpayer Impact: The lack of competition on a $47M contract may have resulted in taxpayers paying more than necessary for NWS system equipment and sustainment.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The National Weather Service's operational capabilities could be impacted if equipment is not procured at optimal prices. Reliance on a single contractor for critical systems raises concerns about long-term support and innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost-plus-fixed-fee pricing
Positive Signals
- Supports critical NWS functions
- Long contract duration allowed for sustained support
Sector Analysis
This contract falls within the IT and Defense sectors, specifically supporting naval operations with security systems and equipment. Spending benchmarks for similar sole-source procurements in this niche are difficult to establish due to limited public data.
Small Business Impact
The contract data indicates that small businesses were not involved in this specific award, as it was awarded directly to Lockheed Martin Corp. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure that the government received fair value. A review of the justification for the sole-source award would be beneficial.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
- Limited transparency in pricing
- No small business participation noted
Tags
security-systems-services-except-locksmi, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.1 million to LOCKHEED MARTIN CORP. NWS SYSTEM EQUIPMENT (OPN, COMPLETION), NWS SUSTAINMENT SPARES (OMN, COMPLETION), NWS RESEARCH&DEVELOPMENT (RDT&E)
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 $47.1 million.
What is the period of performance?
Start: 2012-08-02. End: 2018-09-28.
What was the specific justification for awarding this contract sole-source, and was it adequately documented?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. A thorough review of the contract file would be necessary to ascertain the official justification and its adequacy.
How does the cost-plus-fixed-fee structure compare to industry standards for similar NWS equipment procurements, especially in a competitive environment?
Cost-plus-fixed-fee contracts are generally used when the scope of work is not well-defined or when there's uncertainty in costs. However, they can incentivize contractors to increase costs to maximize profit. Without competitive bids, it's impossible to benchmark against industry standards for similar NWS equipment. In a competitive scenario, fixed-price contracts are often preferred for better cost control.
What is the potential long-term impact on NWS system modernization and maintenance given the lack of competitive pressure on this $47M award?
The lack of competitive pressure may hinder NWS system modernization and maintenance by reducing the incentive for Lockheed Martin to innovate or offer cost efficiencies. Over time, this could lead to higher sustainment costs and potentially slower adoption of newer technologies compared to a scenario with active competition driving performance and value.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION
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
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: $47,071,597
Exercised Options: $47,071,597
Current Obligation: $47,071,597
Actual Outlays: $3,497
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $32,245,274
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-08-02
Current End Date: 2018-09-28
Potential End Date: 2018-10-28 00:00:00
Last Modified: 2025-04-22
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