DoD Awards $182.6M Contract to Lockheed Martin for Navigation Systems, Sole-Sourced
Contract Overview
Contract Amount: $182,611,739 ($182.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-06-16
End Date: 2028-02-28
Contract Duration: 2,448 days
Daily Burn Rate: $74.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UK INS PRODUCTION (UK)
Place of Performance
Location: HEATH, LICKING County, OHIO, 43056
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $182.6 million to LOCKHEED MARTIN CORPORATION for work described as: UK INS PRODUCTION (UK) Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature raises questions about price discovery. 3. Long contract duration (2021-2028) warrants close monitoring. 4. Focus on navigation systems is critical for naval operations.
Value Assessment
Rating: fair
The award value of $182.6M over approximately 6.8 years suggests a substantial investment. Without comparable contracts or detailed cost breakdowns, assessing the pricing against similar systems is difficult. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits opportunities for competitive bidding and potentially impacts price negotiation, as there is no direct comparison from other vendors. The rationale for sole-sourcing is not provided.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially leading to higher costs than if multiple vendors had bid.
Public Impact
Ensures continued availability of critical navigation technology for the Navy. Supports a major defense contractor and its supply chain. Potential for cost overruns due to lack of competition. Long-term commitment may limit flexibility for future technological advancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical technology for defense
- Firm fixed-price contract
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national defense, but often involves high-value, specialized systems where competition can be limited.
Small Business Impact
The data indicates this is a large prime contract awarded to Lockheed Martin Corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective delivery. The Department of Defense's contracting process should include justification for non-competitive awards and mechanisms for accountability.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns due to lack of competition.
- Long contract duration may not align with rapid technological advancements.
- Lack of transparency regarding justification for sole-sourcing.
Tags
search-detection-navigation-guidance-aer, department-of-defense, oh, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $182.6 million to LOCKHEED MARTIN CORPORATION. UK INS PRODUCTION (UK)
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 $182.6 million.
What is the period of performance?
Start: 2021-06-16. End: 2028-02-28.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can meet the requirement. To ensure fair and reasonable pricing, the agency would likely conduct a price analysis based on historical data, cost proposals, or market research. However, without competition, the potential for inflated prices remains a concern.
How does the $182.6M contract value compare to similar navigation system procurements, and what is the projected cost-effectiveness over its duration?
Benchmarking this $182.6M contract against similar navigation system procurements is challenging without access to detailed cost data and specific system functionalities. The firm fixed-price nature provides cost certainty for the government, but the overall cost-effectiveness hinges on the initial negotiation and the actual performance and longevity of the systems delivered.
What are the key performance metrics and oversight mechanisms in place to ensure the successful delivery and effectiveness of these navigation systems?
Key performance metrics would likely include system reliability, accuracy, integration with existing platforms, and adherence to delivery schedules. Oversight mechanisms would involve regular progress reviews, quality assurance inspections, and potentially independent verification and validation processes to ensure the systems meet the Department of the Navy's operational requirements and are effective.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003020Q0015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $232,991,990
Exercised Options: $182,611,739
Current Obligation: $182,611,739
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $160,177,799
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-06-16
Current End Date: 2028-02-28
Potential End Date: 2028-02-28 00:00:00
Last Modified: 2026-02-18
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