DoD awards $22.2M contract to Lockheed Martin for aircraft parts, facing limited competition
Contract Overview
Contract Amount: $22,201,683 ($22.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-02-27
End Date: 2021-12-31
Contract Duration: 2,864 days
Daily Burn Rate: $7.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: STE
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to LOCKHEED MARTIN CORPORATION for work described as: STE Key points: 1. Significant award value of over $22 million. 2. Sole-source award to a major defense contractor. 3. Potential for higher costs due to lack of competition. 4. Contract spans multiple years, indicating long-term need.
Value Assessment
Rating: questionable
The contract value of $22.2M for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for comparable parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this $22.2M contract raises concerns about potential overspending, impacting taxpayer funds.
Public Impact
Taxpayers may be paying a premium for aircraft parts due to the absence of competitive bidding. Reliance on a single contractor for critical aircraft components could pose supply chain risks. The long duration of the contract suggests a sustained need, making the lack of competition a recurring issue.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Award to established contractor
- Supports critical defense needs
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is often characterized by specialized components and can be subject to limited competition due to proprietary technology or specific requirements.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.
Oversight & Accountability
The 'NOT COMPETED' status indicates a potential lack of robust oversight in ensuring competitive sourcing. Further review is needed to understand the justification for bypassing competition and to ensure accountability for the awarded price.
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 inflated prices.
- Potential for supply chain vulnerability due to single-source reliance.
- Limited transparency in price justification.
- Opportunity cost of not exploring competitive avenues.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to LOCKHEED MARTIN CORPORATION. STE
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 $22.2 million.
What is the period of performance?
Start: 2014-02-27. End: 2021-12-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. Agencies must document these reasons thoroughly. Without this documentation, it's impossible to assess if competitive strategies were adequately explored or if the sole-source decision was truly warranted, potentially leading to suboptimal value for the government.
How does the awarded price compare to industry benchmarks for similar aircraft parts, considering the lack of competition?
Assessing the price against industry benchmarks is challenging without competitive data. However, sole-source contracts often carry a price premium. A thorough analysis would involve comparing the unit costs to publicly available data for similar components, factoring in any unique specifications. If the price significantly exceeds benchmarks, it warrants further investigation into cost reasonableness.
What are the long-term risks associated with relying on a single supplier for these critical aircraft parts over a multi-year period?
Long-term reliance on a single supplier for critical parts introduces several risks, including potential supply chain disruptions if the contractor faces issues, price escalation over time without competitive pressure, and a lack of innovation. It also reduces the government's leverage in future negotiations and could hinder the adoption of newer, potentially more cost-effective technologies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833513R0119
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
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: $22,201,683
Exercised Options: $22,201,683
Current Obligation: $22,201,683
Actual Outlays: $5,267
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-27
Current End Date: 2021-12-31
Potential End Date: 2022-04-20 00:00:00
Last Modified: 2025-05-07
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