DoD's $418M Lockheed Martin Contract for MH-60 Parts Lacks Competition
Contract Overview
Contract Amount: $418,132,068 ($418.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2022-09-30
Contract Duration: 364 days
Daily Burn Rate: $1.1M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIRM FIXED PRICE (FFP) PERFORMANCE BASED LOGISTICS (PBL) CONTRACT FOR SUPPLY SUPPORT OF APPROXIMATELY 1,049 WEAPON REPLACEABLE ASSEMBLIES (WRAS)&SHOP REPLACEABLE ASSEMBLIES (SRAS) ASSOCIATED WITH BOTH THE MH-60R & MH-60S.
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $418.1 million to LOCKHEED MARTIN CORPORATION for work described as: FIRM FIXED PRICE (FFP) PERFORMANCE BASED LOGISTICS (PBL) CONTRACT FOR SUPPLY SUPPORT OF APPROXIMATELY 1,049 WEAPON REPLACEABLE ASSEMBLIES (WRAS)&SHOP REPLACEABLE ASSEMBLIES (SRAS) ASSOCIATED WITH BOTH THE MH-60R & MH-60S. Key points: 1. Contract awarded to Lockheed Martin for critical MH-60 helicopter parts. 2. Performance-Based Logistics (PBL) aims for efficient supply chain management. 3. Lack of competition raises concerns about potential overspending. 4. Spending is concentrated in 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract's $418M value for supply support of WRAs/SRAs is significant. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar logistics support contracts.
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 offer competitive pricing.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential aircraft parts and logistics support.
Public Impact
Ensures continued operational readiness for MH-60R/S helicopters. Potential for higher costs due to sole-source award. Supports critical defense supply chain for naval aviation. Long-term sustainment of vital military assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- Potential for Overpricing
Positive Signals
- Performance-Based Logistics
- Supports Critical Defense Assets
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. The $418M award is substantial, and benchmarks for similar sole-source logistics contracts are needed for a thorough value assessment.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. There is no indication of 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 prevent potential waste. Accountability for performance metrics within the PBL framework is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing without competitive bids.
- Lack of transparency regarding justification for non-competition.
- High contract value increases financial risk.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $418.1 million to LOCKHEED MARTIN CORPORATION. FIRM FIXED PRICE (FFP) PERFORMANCE BASED LOGISTICS (PBL) CONTRACT FOR SUPPLY SUPPORT OF APPROXIMATELY 1,049 WEAPON REPLACEABLE ASSEMBLIES (WRAS)&SHOP REPLACEABLE ASSEMBLIES (SRAS) ASSOCIATED WITH BOTH THE MH-60R & MH-60S.
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 $418.1 million.
What is the period of performance?
Start: 2021-10-01. End: 2022-09-30.
What is the justification for not competing this significant contract for MH-60 parts and logistics?
The provided data states the contract was 'NOT COMPETED'. A detailed justification would typically be documented by the agency, potentially citing reasons like urgency, lack of available sources, or existing sole-source provider capabilities. Without this documentation, the rationale remains unclear, raising concerns about potential missed savings from competitive bidding.
How does the performance-based logistics (PBL) structure mitigate risks associated with a sole-source award?
PBL contracts aim to shift focus from item price to performance outcomes, incentivizing the contractor to improve efficiency and reduce costs over the contract's life. While this can offer some mitigation, the inherent lack of competition in the initial award still presents a risk of suboptimal pricing compared to a competed scenario.
What is the estimated taxpayer impact of awarding this contract without competition?
The primary taxpayer impact is the potential for overpayment due to the absence of competitive pressure. Without bids from multiple suppliers, Lockheed Martin may not have been incentivized to offer the lowest possible price, leading to higher overall costs for the Department of Defense and taxpayers.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1801 STATE RT 17 C, OWEGO, NY, 13827
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: $418,132,068
Exercised Options: $418,132,068
Current Obligation: $418,132,068
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $26,549
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038320DW001
IDV Type: IDC
Timeline
Start Date: 2021-10-01
Current End Date: 2022-09-30
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2025-04-26
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