DoD Awards $15.1M to Lockheed Martin for Aircraft Parts, Sole-Source Contract Raises Oversight Concerns
Contract Overview
Contract Amount: $15,118,807 ($15.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-11-20
End Date: 2028-11-20
Contract Duration: 1,096 days
Daily Burn Rate: $13.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RECEIVER-PROCESSOR,
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $15.1 million to LOCKHEED MARTIN CORPORATION for work described as: RECEIVER-PROCESSOR, Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature limits competitive pricing. 3. Long duration contract warrants close monitoring. 4. Aircraft parts sector is critical for defense readiness.
Value Assessment
Rating: questionable
The award amount of $15.1M for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates or similar contracts. Benchmarking against industry standards for similar components is crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This method can lead to higher prices and reduced innovation as there is no market pressure to offer the best value. The lack of competition limits price discovery.
Taxpayer Impact: The sole-source award potentially means taxpayers are paying more than necessary for these aircraft parts, as competitive pressures that drive down costs are absent.
Public Impact
Ensures continued availability of critical aircraft parts for defense operations. Potential for inflated costs due to lack of competition impacts overall defense budget. Long-term contract (2028) requires sustained oversight to ensure value and performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical component for defense
- Award to established contractor
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a vital component of the aerospace and defense industry. Spending in this area is consistently high due to the complex and specialized nature of military aircraft.
Small Business Impact
This award went to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific contract, which is common for large, sole-source awards to major defense manufacturers.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Defense Contract Management Agency to ensure fair pricing, quality, and timely delivery. Transparency in contract modifications and performance metrics is essential.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Potential for vendor lock-in.
- Long contract duration increases risk of cost escalation.
- Limited transparency on pricing justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to LOCKHEED MARTIN CORPORATION. RECEIVER-PROCESSOR,
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.1 million.
What is the period of performance?
Start: 2025-11-20. End: 2028-11-20.
What is the justification for the sole-source award, and how does it align with FAR regulations for non-competitive procurements?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Agencies must adhere to strict Federal Acquisition Regulation (FAR) guidelines, demonstrating why full and open competition is not feasible or not in the government's best interest. This often requires detailed documentation and review to ensure taxpayer funds are used appropriately.
How will the government ensure cost reasonableness and prevent potential overpricing given the absence of competitive bidding?
To ensure cost reasonableness in sole-source contracts, the government relies on contractor cost and pricing data, forward pricing rates, and independent government cost estimates. Contract specialists will conduct detailed price analyses, potentially using historical pricing, should-cost models, or benchmarking against similar items if available. Robust negotiation and ongoing monitoring are critical.
What performance metrics and quality assurance measures are in place to guarantee the effectiveness and reliability of these aircraft parts?
Performance metrics and quality assurance measures are typically defined in the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). These include specifications for materials, manufacturing processes, testing requirements, and delivery schedules. Regular inspections, audits, and performance reviews by the contracting officer's representative (COR) ensure compliance and product reliability.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0038323RF246
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $15,118,807
Exercised Options: $15,118,807
Current Obligation: $15,118,807
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038320GXF01
IDV Type: BOA
Timeline
Start Date: 2025-11-20
Current End Date: 2028-11-20
Potential End Date: 2028-11-20 00:00:00
Last Modified: 2025-12-17
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