DoD awards $17.35M for Aircraft Fixed Wing services to Lockheed Martin Corporation
Contract Overview
Contract Amount: $17,351,625 ($17.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-01-31
End Date: 2011-10-05
Contract Duration: 2,073 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200606!000043!5700!FA8615!ASC/YPK !F0460698D0002 !A!N! !N!SC03 ! !20060131!20060731!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000001000000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !166 !NAVSTAR GPS !336413!E! !5!B!S! ! ! !99990909!B! ! !N!Z!D!U!Y!1!001!N!1G!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to LOCKHEED MARTIN CORPORATION for work described as: 200606!000043!5700!FA8615!ASC/YPK !F0460698D0002 !A!N! !N!SC03 ! !20060131!20060731!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOG… Key points: 1. Contract awarded for Engineering Services related to Aircraft Fixed Wing. 2. The primary contractor is Lockheed Martin Corporation, a major defense contractor. 3. The contract was awarded under Full and Open Competition. 4. The sector is Defense, with a specific focus on aircraft equipment.
Value Assessment
Rating: fair
The contract value of $17.35M over approximately 5 years appears reasonable for specialized engineering services. However, without specific deliverables or a detailed breakdown of hours and rates, a precise per-unit cost comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure fair pricing for essential defense services.
Public Impact
Supports critical defense capabilities related to aircraft and navigation systems. Ensures continued operation and maintenance of fixed-wing aircraft for the Department of Defense. Benefits Lockheed Martin Corporation, a significant player in the aerospace and defense industry. Potential for follow-on contracts based on performance and evolving defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for Time and Materials contract.
- Potential for cost overruns with Time and Materials pricing.
- Limited visibility into specific engineering tasks performed.
Positive Signals
- Awarded under Full and Open Competition.
- Contractor is a reputable and experienced defense firm.
- Supports essential DoD operational requirements.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft and related equipment. Spending in this area is crucial for national security and often involves complex, high-value procurements with established industry leaders.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, which is common for large prime contracts.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), indicating established oversight. However, the Time and Materials nature of the contract warrants close monitoring to ensure cost control and prevent scope creep.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Time and Materials contract type.
- Potential for cost overruns.
- Lack of detailed task-specific pricing.
- Limited visibility into specific deliverables.
- Contract duration is substantial.
Tags
engineering-services, department-of-defense, ny, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to LOCKHEED MARTIN CORPORATION. 200606!000043!5700!FA8615!ASC/YPK !F0460698D0002 !A!N! !N!SC03 ! !20060131!20060731!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000001000000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1C!OTHER AIRCRAFT EQUIPMENT !166 !NAVSTAR GPS !336413!E! !5!B!S! ! ! !999
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 $17.4 million.
What is the period of performance?
Start: 2006-01-31. End: 2011-10-05.
What specific engineering services are being procured under this contract, and how do they align with current defense priorities?
The data indicates 'Engineering Services' for 'Aircraft Fixed Wing' and 'Other Aircraft Equipment', including 'NAVSTAR GPS'. These services likely encompass design, modification, testing, and sustainment engineering for critical aircraft systems. Alignment with current priorities would depend on specific DoD modernization or operational readiness goals for fixed-wing platforms and their associated navigation and communication technologies.
How does the Time and Materials pricing structure mitigate or exacerbate the risk of cost overruns for this $17.35M contract?
Time and Materials (T&M) contracts carry inherent risks of cost overruns as they pay for direct labor hours and indirect costs. While competition can help set initial rates, the absence of a cost ceiling or fixed price for specific tasks means the final cost is directly tied to effort expended. Effective oversight, clear task definitions, and vigilant monitoring by the DCMA are crucial to control costs and prevent inefficiencies.
What is the expected effectiveness of these engineering services in enhancing the operational capabilities or lifespan of the targeted aircraft and systems?
The effectiveness hinges on the quality of Lockheed Martin's engineering execution and the clarity of the requirements. If the services address identified performance gaps, obsolescence issues, or modernization needs, they can significantly enhance operational capabilities and extend the service life of critical assets. The contract's duration suggests a long-term commitment to maintaining and improving these platforms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F0460698D0002
IDV Type: IDC
Timeline
Start Date: 2006-01-31
Current End Date: 2011-10-05
Potential End Date: 2011-10-05 00:00:00
Last Modified: 2014-06-30
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