DoD awards $18M for ISNS Blade Chassis to Lockheed Martin, raising competition concerns
Contract Overview
Contract Amount: $18,026,595 ($18.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2009-12-30
End Date: 2011-01-24
Contract Duration: 390 days
Daily Burn Rate: $46.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ISNS BLADE CHASSIS
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $18.0 million to LOCKHEED MARTIN CORP for work described as: ISNS BLADE CHASSIS Key points: 1. High contract value of $18M for specialized electronic parts. 2. Sole-source award to Lockheed Martin limits competitive pricing. 3. Potential risk of overpayment due to lack of competition. 4. Spending falls under 'Other Electronic Parts and Equipment' sector.
Value Assessment
Rating: questionable
The contract value of $18M for ISNS Blade Chassis is significant. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar specialized electronic components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition on this $18M contract may result in taxpayers paying more than necessary for the ISNS Blade Chassis.
Public Impact
Taxpayers may be overpaying for critical defense components due to a lack of competitive bidding. The sole-source nature of this award raises questions about the Department of Defense's procurement strategies. Limited transparency into the pricing justification for this significant contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Specific component for defense systems
Sector Analysis
This spending falls within the 'Other Electronic Parts and Equipment Merchant Wholesalers' category. Benchmarks for specialized electronic components can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that competitive strategies are considered for future procurements.
Related Government Programs
- Other Electronic Parts and Equipment Merchant Wholesalers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency on justification
- No small business participation indicated
Tags
other-electronic-parts-and-equipment-mer, department-of-defense, pa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to LOCKHEED MARTIN CORP. ISNS BLADE CHASSIS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.0 million.
What is the period of performance?
Start: 2009-12-30. End: 2011-01-24.
What was the justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or lack of available alternatives. Further investigation would be required to determine the specific rationale behind this decision.
What is the potential cost overrun due to the lack of competition?
Without competitive bids, it's impossible to quantify the exact cost overrun. However, sole-source contracts are generally at higher risk of inflated pricing compared to those awarded through full and open competition. The $18M value suggests potential for significant overpayment if market prices are lower.
How does this spending align with the Department of Defense's goals for efficient procurement?
Awarding a substantial $18M contract on a sole-source basis appears to contradict goals for efficient procurement, which typically emphasize competition to drive down costs and ensure best value. This award may indicate a need to review procurement strategies to maximize competition.
Industry Classification
NAICS: Wholesale Trade › Household Appliances and Electrical and Electronic Goods Merchant Wholesalers › Other Electronic Parts and Equipment Merchant Wholesalers
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
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
Address: 3333 PILOT KNOB RD, SAINT PAUL, MN, 04
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,026,595
Exercised Options: $18,026,595
Current Obligation: $18,026,595
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002405D5130
IDV Type: IDC
Timeline
Start Date: 2009-12-30
Current End Date: 2011-01-24
Potential End Date: 2011-01-24 00:00:00
Last Modified: 2013-03-27
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