DoD's $33.7M AEGIS ASHORE Trainer Contract Awarded to Lockheed Martin Raises Competition Concerns
Contract Overview
Contract Amount: $33,703,296 ($33.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-12-20
End Date: 2015-09-28
Contract Duration: 1,012 days
Daily Burn Rate: $33.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AEGIS ASHORE TEAM TRAINER
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $33.7 million to LOCKHEED MARTIN CORPORATION for work described as: AEGIS ASHORE TEAM TRAINER Key points: 1. The $33.7 million contract for the AEGIS ASHORE TEAM TRAINER was awarded to Lockheed Martin Corporation. 2. This contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. 3. The award method was 'NOT COMPETED', indicating a lack of competitive bidding. 4. The contract type is 'COST PLUS FIXED FEE', which can lead to cost overruns if not managed carefully. 5. The contract duration was 1012 days, ending in September 2015.
Value Assessment
Rating: questionable
The contract value of $33.7 million for a trainer system is difficult to benchmark without specific details on system complexity and features. However, the 'NOT COMPETED' award and 'COST PLUS FIXED FEE' structure suggest potential for less favorable pricing compared to a competitive, fixed-price scenario.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was explicitly 'NOT COMPETED', indicating a sole-source award to Lockheed Martin Corporation. This limits price discovery and potentially leads to higher costs for the government as there was no competitive pressure to drive down the price.
Taxpayer Impact: The lack of competition in this $33.7 million contract means taxpayers may have paid more than necessary for the AEGIS ASHORE TEAM TRAINER system.
Public Impact
Taxpayers may have overpaid due to the sole-source nature of the contract. The AEGIS ASHORE system is a critical component of national defense, making trainer effectiveness vital. Lack of transparency in the procurement process raises questions about accountability. The long contract duration (1012 days) suggests a significant development or delivery period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Awarded to a major defense contractor
- Contract completed within its timeframe
Sector Analysis
This contract falls within the broader 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this sector is often characterized by high R&D costs and long procurement cycles, with significant government investment.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded directly to Lockheed Martin Corporation. The lack of subcontracting information prevents an assessment of small business participation.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding competitive procurement practices. Further review would be needed to understand the justification for the sole-source award and ensure appropriate accountability.
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
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency in procurement
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to LOCKHEED MARTIN CORPORATION. AEGIS ASHORE TEAM TRAINER
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 $33.7 million.
What is the period of performance?
Start: 2012-12-20. End: 2015-09-28.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT COMPETED', implying a sole-source award. A thorough review would require access to the contract file to determine the specific justification, such as unique capabilities, urgent need, or lack of other responsible sources. Without this information, it's impossible to assess if competitive strategies were adequately explored or if this was a necessary exception.
How does the cost-plus-fixed-fee structure for this trainer system compare to industry benchmarks for similar complex training equipment?
Cost-plus-fixed-fee contracts carry inherent risks of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Benchmarking this specific $33.7 million contract against similar systems is challenging without detailed specifications. However, the lack of competition suggests the government may not have achieved the most cost-effective outcome compared to a competitive, fixed-price bid.
What was the effectiveness of the AEGIS ASHORE TEAM TRAINER system, and did it meet the Department of the Navy's operational requirements?
The provided data does not contain information regarding the effectiveness or performance of the AEGIS ASHORE TEAM TRAINER system. Assessing its success would require reviewing post-award performance reports, user feedback, and mission accomplishment metrics. The contract's completion date in 2015 means such evaluations should be available through official channels.
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: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134012R0005
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,703,296
Exercised Options: $33,703,296
Current Obligation: $33,703,296
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $1,565,045
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-20
Current End Date: 2015-09-28
Potential End Date: 2015-09-28 00:00:00
Last Modified: 2018-03-01
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