DoD Awards $11.3M Contract for LCS-25 PDT&T Support to Lockheed Martin
Contract Overview
Contract Amount: $11,267,346 ($11.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-22
End Date: 2026-01-31
Contract Duration: 1,227 days
Daily Burn Rate: $9.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LCS-25 PDT&T SUPPORT - LABOR
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $11.3 million to LOCKHEED MARTIN CORPORATION for work described as: LCS-25 PDT&T SUPPORT - LABOR Key points: 1. Contract awarded to incumbent, Lockheed Martin, for critical support services. 2. Significant contract value for a single delivery order. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Focus on shipbuilding and repair sector, a key area for naval readiness.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for potential cost growth beyond initial estimates. Without a benchmark for similar PDT&T support contracts, assessing the pricing efficiency is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant award may result in taxpayers paying more than if the contract had been competitively bid.
Public Impact
Ensures continued operational readiness for the Littoral Combat Ship program. Supports advanced technology development and testing for naval vessels. Impacts the shipbuilding and repair industry in New Jersey.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition award
- Lack of clear performance metrics in provided data
Positive Signals
- Supports critical naval asset readiness
- Award to established prime contractor
Sector Analysis
This contract falls within the Defense sector, specifically Ship Building and Repair. Spending in this area is crucial for maintaining naval fleet capabilities and technological superiority.
Small Business Impact
The data indicates no specific set-aside for small businesses. Larger prime contractors like Lockheed Martin typically manage significant portions of such contracts, with subcontracting opportunities potentially available.
Oversight & Accountability
Oversight is crucial for CPFF contracts to ensure costs remain reasonable and that the contractor meets performance expectations. The Department of the Navy is responsible for monitoring this award.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of competitive bidding limits price validation
- Dependency on a single contractor for critical support
- Long contract duration (through 2026) increases exposure to cost changes
Tags
ship-building-and-repairing, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.3 million to LOCKHEED MARTIN CORPORATION. LCS-25 PDT&T SUPPORT - LABOR
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 $11.3 million.
What is the period of performance?
Start: 2022-09-22. End: 2026-01-31.
What specific PDT&T services are included in this contract and how do they directly contribute to LCS-25's mission readiness?
The contract likely covers a range of services including program management, technical support, testing, and evaluation for the Littoral Combat Ship (LCS) program's platforms and systems. These services are essential for ensuring the ship's combat systems are integrated, functional, and ready for deployment, directly impacting the Navy's operational capabilities and mission success.
Given the limited competition, what mechanisms are in place to mitigate potential cost overruns and ensure fair pricing?
While limited competition restricts price discovery, the Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Navy. Mechanisms likely include detailed cost audits, performance reviews, and strict adherence to the fixed fee component. The agency must actively monitor expenditures and contractor performance to prevent excessive costs.
How does this contract align with the Navy's long-term strategy for LCS sustainment and modernization?
This contract appears to support the ongoing sustainment and potentially the modernization of the LCS class by ensuring critical support functions are maintained. By awarding this to Lockheed Martin, the Navy leverages existing expertise, aiming for continuity in operations and development. This aligns with ensuring the fleet remains capable and adaptable to evolving threats.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2323 EASTERN BLVD, BALTIMORE, MD, 21220
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: $11,447,880
Exercised Options: $11,447,880
Current Obligation: $11,267,346
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $4,057,904
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002419G2319
IDV Type: BOA
Timeline
Start Date: 2022-09-22
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-18
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)