DoD Awards $74.4M Contract to Lockheed Martin for LSEQ MK 5 MOD 2
Contract Overview
Contract Amount: $74,415,030 ($74.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-03-09
End Date: 2025-02-28
Contract Duration: 1,817 days
Daily Burn Rate: $41.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LSEQ MK 5 MOD 2
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $74.4 million to LOCKHEED MARTIN CORPORATION for work described as: LSEQ MK 5 MOD 2 Key points: 1. Contract Value: $74.4 million over 1817 days. 2. Contractor: Lockheed Martin Corporation, a major defense contractor. 3. Competition: Awarded under full and open competition. 4. Sector: Manufacturing of measuring and controlling devices.
Value Assessment
Rating: good
The contract value of $74.4 million appears reasonable for a complex defense system over a multi-year period. Benchmarking against similar advanced control devices would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that likely led to fair pricing. The existence of multiple bidders would have further driven price discovery.
Taxpayer Impact: Taxpayer funds are being used for critical defense equipment, with competition aiming to ensure value for money.
Public Impact
Ensures continued availability of essential defense technology. Supports a major defense contractor and its supply chain. Contributes to national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term defense contracts.
- Reliance on a single contractor for critical components.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type limits cost risk.
Sector Analysis
This contract falls within the Other Measuring and Controlling Device Manufacturing sector, which is crucial for defense systems. Spending in this sector can vary significantly based on technological advancements and defense needs.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy awarded this contract, implying oversight from a federal agency. The duration and value suggest ongoing monitoring is necessary to ensure performance and cost control.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk of scope creep or obsolescence.
- Potential for sole-source follow-on contracts if competition is limited.
- Dependence on a single prime contractor for critical technology.
- Complexity of defense systems can lead to unforeseen technical challenges.
Tags
other-measuring-and-controlling-device-m, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.4 million to LOCKHEED MARTIN CORPORATION. LSEQ MK 5 MOD 2
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 $74.4 million.
What is the period of performance?
Start: 2020-03-09. End: 2025-02-28.
What is the specific function and criticality of the LSEQ MK 5 MOD 2 system?
The LSEQ MK 5 MOD 2 is a defense system, likely related to electronic warfare or sensor technology, given the contractor and sector. Its criticality lies in its role within naval operations, potentially providing intelligence, targeting, or defensive capabilities essential for mission success and personnel safety.
What are the key performance metrics and potential risks associated with this contract?
Key performance metrics would likely include system reliability, accuracy, and timely delivery. Potential risks include technological obsolescence, integration challenges with existing platforms, and geopolitical factors impacting defense needs. The firm fixed price structure mitigates some financial risk for the government.
How does the pricing compare to similar systems or previous iterations?
Without specific benchmark data for the LSEQ MK 5 MOD 2 or comparable systems, a direct pricing comparison is difficult. However, the firm fixed price and full and open competition suggest an effort to achieve competitive pricing. A detailed cost analysis would be required for a definitive assessment.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6339419R0017
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
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: $74,415,030
Exercised Options: $74,415,030
Current Obligation: $74,415,030
Actual Outlays: $3,044,169
Subaward Activity
Number of Subawards: 103
Total Subaward Amount: $294,743,581
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-03-09
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-03-21
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