DoD awards $13.8M for Audio Management Computer Testers to Lockheed Martin, a sole-source contract

Contract Overview

Contract Amount: $13,819,474 ($13.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2009-06-25

End Date: 2010-10-25

Contract Duration: 487 days

Daily Burn Rate: $28.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUDIO MANAGEMENT COMPUTER (AMC)TESTER

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to LOCKHEED MARTIN CORPORATION for work described as: AUDIO MANAGEMENT COMPUTER (AMC)TESTER Key points: 1. Contract awarded for specialized audio management computer testers. 2. Sole-source award to Lockheed Martin Corporation. 3. Contract duration of 487 days. 4. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $13.8M for a 487-day duration for specialized testers appears high without competitive benchmarking. The lack of competition makes it difficult to assess fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely resulted in a higher price than a competed contract would have achieved.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. Limited visibility into the necessity and justification for a sole-source award. Potential for reduced innovation and quality without market competition.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • No small business participation

Positive Signals

  • Specific technical requirement met

Sector Analysis

The Department of Defense frequently procures specialized electronic equipment. Benchmarks for similar specialized testing equipment are difficult to establish without competitive data, but this award's value is notable.

Small Business Impact

There is no indication of small business participation in this contract. This represents a missed opportunity to support small businesses and potentially leverage their specialized capabilities.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification was sound and the pricing was fair, despite the lack of competition.

Related Government Programs

  • Other Measuring and Controlling Device Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award lacks transparency.
  • Potential for inflated pricing due to no competition.
  • No small business involvement.
  • Limited insight into technical necessity.
  • Contract awarded in 2009, potential for outdated technology.

Tags

other-measuring-and-controlling-device-m, department-of-defense, ny, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to LOCKHEED MARTIN CORPORATION. AUDIO MANAGEMENT COMPUTER (AMC)TESTER

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 $13.8 million.

What is the period of performance?

Start: 2009-06-25. End: 2010-10-25.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without detailed documentation, it's impossible to confirm the validity of the justification for this specific Audio Management Computer Tester contract.

How does the $13.8M price compare to similar specialized testing equipment procured competitively?

Direct comparison is challenging due to the specialized nature of the Audio Management Computer Tester and the sole-source award. However, without competitive bids, it's highly probable that the price is higher than what could have been achieved through a competitive procurement process, potentially leading to increased costs for the government.

What is the long-term strategic value of this specific Audio Management Computer Tester to the Department of Defense?

The long-term strategic value depends on the operational requirements it supports. If it's critical for maintaining essential audio systems or for unique testing scenarios, its value is high. However, the sole-source award raises questions about whether alternative, potentially more cost-effective solutions could have met these needs.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingOther Measuring and Controlling Device Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1801 STATE RT 17 C, OWEGO, NY, 23

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,819,474

Exercised Options: $13,819,474

Current Obligation: $13,819,474

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline

Start Date: 2009-06-25

Current End Date: 2010-10-25

Potential End Date: 2010-10-25 00:00:00

Last Modified: 2009-07-27

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