DoD Awards $13.4M for Test Processors to Lockheed Martin Under Sole-Source Contract
Contract Overview
Contract Amount: $13,406,563 ($13.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-07-15
End Date: 2026-07-15
Contract Duration: 365 days
Daily Burn Rate: $36.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROCESSOR,TEST CONT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $13.4 million to LOCKHEED MARTIN CORPORATION for work described as: PROCESSOR,TEST CONT Key points: 1. Significant award to a major defense contractor. 2. Sole-source award raises questions about price discovery. 3. Potential for higher costs due to lack of competition. 4. Focus on specialized communications equipment manufacturing.
Value Assessment
Rating: questionable
The contract value of $13.4 million for a 1-year duration appears high for 'Other Communications Equipment Manufacturing'. Benchmarking against similar sole-source awards for specialized processors is difficult without more detail, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for taxpayers as there is no competitive pressure to drive down prices.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these test processors, as competitive bidding was bypassed.
Public Impact
Taxpayers may be overpaying for essential defense components. Lack of transparency in the procurement process. Potential for reduced innovation due to limited market engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value for specialized equipment
Positive Signals
- Award to established defense contractor
- Clear delivery timeline
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector often involves highly specialized components for defense applications. Spending benchmarks are difficult to establish without specific technical details, but large sole-source awards can be a red flag for cost efficiency.
Small Business Impact
This award went to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific procurement, either as subcontractors or prime bidders.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, despite the absence of competition.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award bypasses competition.
- Potential for inflated pricing due to lack of market pressure.
- Limited transparency in the procurement process.
- Dependence on a single supplier for critical components.
Tags
other-communications-equipment-manufactu, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to LOCKHEED MARTIN CORPORATION. PROCESSOR,TEST CONT
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 $13.4 million.
What is the period of performance?
Start: 2025-07-15. End: 2026-07-15.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one source can meet. Agencies are still required to perform price analysis, often through cost breakdowns, historical pricing, or comparison to similar, albeit not identical, contracts. Without this information, it's difficult to assess the fairness of the price.
What are the risks associated with relying on a single supplier for critical test processors, especially in a sole-source scenario?
The primary risks include price escalation over time, potential supply chain disruptions if the sole supplier faces issues, and a lack of incentive for the supplier to innovate or improve efficiency. This dependence can also limit the government's flexibility in adopting newer technologies or negotiating better terms.
How does this $13.4 million award contribute to the Department of Defense's overall mission effectiveness, and is the value commensurate with the expected benefits?
The effectiveness hinges on the critical role these test processors play in the Navy's operations. If they are essential for testing vital communication systems, the value could be justified. However, without understanding the specific application and the alternatives, it's challenging to definitively state if the value is commensurate with the benefits.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0038324RN376
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD, ORLANDO, FL, 32819
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: $27,397,684
Exercised Options: $27,397,684
Current Obligation: $13,406,563
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038323GA501
IDV Type: BOA
Timeline
Start Date: 2025-07-15
Current End Date: 2026-07-15
Potential End Date: 2026-07-15 00:00:00
Last Modified: 2026-01-28
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