DoD Awards $98.7M for Unique Surface Support Equipment to Lockheed Martin, Sole-Source
Contract Overview
Contract Amount: $98,702,370 ($98.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2029-02-28
Contract Duration: 1,825 days
Daily Burn Rate: $54.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: UNIQUE SURFACE SUPPORT EQUIPMENT (UK)
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $98.7 million to LOCKHEED MARTIN CORPORATION for work described as: UNIQUE SURFACE SUPPORT EQUIPMENT (UK) Key points: 1. Significant contract value of $98.7 million awarded. 2. Sole-source award to Lockheed Martin Corporation raises competition concerns. 3. Contract duration of 5 years (1825 days) indicates long-term need. 4. Engineering Services sector (NAICS 541330) is the focus.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without more detailed cost breakdowns and comparison to similar sole-source awards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $98.7 million contract means taxpayers may not be receiving the best possible price for the required engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for cost escalation under the Cost Plus Fixed Fee structure. Limited transparency into the justification for a sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Long-term contract duration suggests a critical need.
- Award to a major defense contractor.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense readiness. Spending benchmarks for specialized support equipment can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this sole-source award.
Oversight & Accountability
Oversight will be critical to ensure cost control and performance under this sole-source, cost-plus contract. The Department of the Navy is the contracting agency.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Cost Plus Fixed Fee contract type increases cost overrun risk.
- Potential for inflated pricing due to lack of competitive bidding.
- Limited transparency on justification for sole-source.
Tags
engineering-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.7 million to LOCKHEED MARTIN CORPORATION. UNIQUE SURFACE SUPPORT EQUIPMENT (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 $98.7 million.
What is the period of performance?
Start: 2024-03-01. End: 2029-02-28.
What is the specific 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, urgent needs, or lack of viable alternatives. Without access to the specific justification documentation, it's impossible to detail the steps taken to ensure fair and reasonable pricing. However, agencies are required to perform price analysis, which may involve comparing proposed costs to historical prices, other contracts, or independent cost estimates.
What are the potential risks associated with a Cost Plus Fixed Fee contract for specialized equipment, and how can they be mitigated?
Cost Plus Fixed Fee contracts carry the risk of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Mitigation strategies include robust government oversight, detailed cost tracking, clear performance metrics, and strong negotiation of the fixed fee based on realistic cost projections and contractor efficiencies.
How does the lack of competition impact the long-term value and innovation for this unique surface support equipment?
The lack of competition can stifle innovation and reduce long-term value by removing the incentive for the contractor to be highly efficient or develop cost-saving improvements. Without competitive pressure, there's less drive to explore alternative technologies or optimize designs, potentially leading to higher lifecycle costs and slower technological advancement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003024R2017
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1102 JOHN GLENN BLVD, TITUSVILLE, FL, 32780
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $112,390,597
Exercised Options: $104,395,941
Current Obligation: $98,702,370
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $7,405,843
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-03-01
Current End Date: 2029-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2025-07-15
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