DoD Awards $67.6M Firm Fixed Price Contract to Lockheed Martin for Navigation Systems
Contract Overview
Contract Amount: $67,622,176 ($67.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-04-23
End Date: 2017-07-17
Contract Duration: 2,642 days
Daily Burn Rate: $25.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SEE CLIN 0001 DESCRIPTION
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $67.6 million to LOCKHEED MARTIN CORPORATION for work described as: SEE CLIN 0001 DESCRIPTION Key points: 1. Significant award to a major defense contractor, Lockheed Martin. 2. Contract type is Firm Fixed Price, indicating price certainty. 3. Awarded by the Department of the Navy, part of DoD. 4. NAICS code 334511 covers Search, Detection, Navigation, Guidance, and Instrument Manufacturing.
Value Assessment
Rating: fair
The contract value of $67.6M over approximately 7 years suggests a substantial investment. Without specific unit data or comparison points for similar navigation systems, a precise value assessment is difficult. However, the duration and nature of the equipment imply a significant, but potentially fair, price for specialized technology.
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 compared to a competitive process. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers, as there was no market pressure to drive down prices.
Public Impact
Impacts military navigation capabilities, crucial for naval operations. Supports advanced technology development in the defense sector. Potential implications for future defense procurement strategies. Ensures continued operational readiness for naval assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency on justification for sole-source.
- Long contract duration could mask cost overruns.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Award to established defense contractor suggests reliability.
- Supports critical national defense infrastructure.
Sector Analysis
This contract falls within the Defense sector, specifically related to advanced navigation and guidance systems. Spending in this area is critical for maintaining technological superiority. Benchmarks for similar specialized navigation systems are difficult to ascertain due to proprietary technology and unique requirements.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data. Large sole-source awards often bypass small business opportunities.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price was fair and reasonable, and that competition was appropriately considered. The Department of the Navy should have clear justification for bypassing competitive bidding processes.
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 raises concerns about price fairness.
- Lack of competition limits transparency and potential cost savings.
- Potential for contractor lock-in due to specialized technology.
- Long contract duration may obscure actual cost efficiency.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $67.6 million to LOCKHEED MARTIN CORPORATION. SEE CLIN 0001 DESCRIPTION
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 $67.6 million.
What is the period of performance?
Start: 2010-04-23. End: 2017-07-17.
What was the specific justification for awarding this contract on a sole-source basis instead of through full and open competition?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this information, it's impossible to assess if the lack of competition was warranted or if it led to inflated costs.
How does the per-unit cost of these navigation systems compare to industry benchmarks or previous procurements?
The data does not provide per-unit cost information or allow for direct comparison to industry benchmarks. The total award value of $67.6 million over approximately 7 years for specialized navigation systems makes a simple per-unit cost calculation difficult without knowing the quantity procured. Further analysis would require detailed specifications and pricing breakdowns.
What is the expected impact of these navigation systems on the operational effectiveness and readiness of naval assets?
These advanced navigation systems are expected to significantly enhance the operational effectiveness and readiness of naval assets by providing precise, reliable, and potentially more advanced navigation capabilities. This supports mission success, safety, and the ability to operate in complex environments, contributing directly to national security objectives.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016409RJQ84
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $67,622,176
Exercised Options: $67,622,176
Current Obligation: $67,622,176
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-23
Current End Date: 2017-07-17
Potential End Date: 2017-07-17 00:00:00
Last Modified: 2017-08-25
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