DoD Awards $24.3M Fixed-Price Contract to Lockheed Martin for Aircraft Fixed Wing Services

Contract Overview

Contract Amount: $24,276,197 ($24.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2004-07-01

End Date: 2008-12-31

Contract Duration: 1,644 days

Daily Burn Rate: $14.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: 200410!000147!5700!GU82 !ASC/YPK !F4262001D0058 !A!N! !N!SC33 ! !20040701!20080731!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76101!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000001236273!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !5!B!S! ! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!1A!Z!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200410!000147!5700!GU82 !ASC/YPK !F4262001D0058 !A!N! !N!SC33 ! !20040701!20080731!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76101!27000!439!48!FORT WORTH !TARR… Key points: 1. The contract, valued at $24,276,196.99, was awarded to Lockheed Martin Corporation. 2. This award falls under the Engineering Services sector, with a primary focus on Aircraft Fixed Wing. 3. The contract was not competed, raising potential concerns about price discovery and value. 4. The duration of the contract is 1644 days, spanning from July 1, 2004, to December 31, 2008.

Value Assessment

Rating: questionable

The contract value of $24.3 million for aircraft fixed wing services appears substantial. Without specific benchmarks for similar fixed-price delivery orders for aircraft components or engineering services, it's difficult to definitively assess its pricing. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to obtain the best price.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium compared to a competitively bid contract.

Public Impact

Taxpayers may have overpaid due to the lack of competition. The long duration of the contract could indicate a critical or ongoing need for these services. The award to a major defense contractor like Lockheed Martin highlights their significant role in government procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long contract duration without clear justification for sole-source

Positive Signals

Award to established contractor
Clear service description (Aircraft Fixed Wing)

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to aircraft fixed wing components. Spending in this area is crucial for maintaining military aviation capabilities. Benchmarks for sole-source engineering services can vary widely based on complexity and proprietary technology.

Small Business Impact

This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication in the provided data whether small businesses were involved as subcontractors. The focus on a sole-source award to a major corporation typically bypasses opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the justification for not competing the contract was valid and that the pricing, despite the lack of competition, was reasonable. Post-award audits would be beneficial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of transparency in justification
Potential for inflated pricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to LOCKHEED MARTIN CORPORATION. 200410!000147!5700!GU82 !ASC/YPK !F4262001D0058 !A!N! !N!SC33 ! !20040701!20080731!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76101!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000001236273!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !* !336411!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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2004-07-01. End: 2008-12-31.

What was the specific 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 the unavailability of other sources. A thorough review of the contract file would be necessary to ascertain the official reason.

How does the unit cost of this contract compare to similar competitively awarded contracts for aircraft fixed wing components?

Without access to a database of comparable competitively awarded contracts for aircraft fixed wing components, a direct unit cost comparison is not possible. The lack of competition in this award makes it inherently difficult to establish a reliable benchmark for value assessment.

What is the potential risk to national security if these aircraft fixed wing services were not procured from Lockheed Martin?

The risk to national security would depend on the specific nature of the 'Aircraft Fixed Wing' services and whether Lockheed Martin possesses unique, proprietary technology or expertise essential for these aircraft. If other qualified sources exist, the risk is primarily financial (overpayment); if not, the risk could impact operational readiness.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1 LOCKHEED BLVD, FORT WORTH, TX, 76108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F4262001D0058

IDV Type: IDC

Timeline