DoD's $16.17M Radio Improvement Program Awarded to Lockheed Martin via Non-Competitive Delivery Order

Contract Overview

Contract Amount: $16,173,674 ($16.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2007-01-24

End Date: 2008-06-30

Contract Duration: 523 days

Daily Burn Rate: $30.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RADIO IMPROVEMENT PROGRAM

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to LOCKHEED MARTIN CORPORATION for work described as: RADIO IMPROVEMENT PROGRAM Key points: 1. Significant investment in radio systems by the Air Force. 2. Sole-source award to a major defense contractor, Lockheed Martin. 3. Potential for higher costs due to lack of competition. 4. Engineering services sector, with a focus on defense applications.

Value Assessment

Rating: questionable

The award value of $16.17M for engineering services is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar contracts for radio system improvements.

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 inflated costs for the government.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as a more competitive process could have potentially secured lower prices or better terms.

Public Impact

Impacts Air Force communication capabilities. Potential for increased defense spending without competitive justification. Highlights reliance on specific contractors for specialized systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for cost overruns

Positive Signals

Addresses critical radio improvement needs
Awarded to a known defense contractor

Sector Analysis

The $16.17M contract falls within the engineering services sector, specifically supporting defense communications. Benchmarks for similar sole-source engineering contracts in the defense sector are often higher due to specialized requirements and limited vendor pools.

Small Business Impact

The award went to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific delivery order.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further review of the justification for not competing the contract and the oversight of cost controls would be beneficial.

Related Government Programs

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

Risk Flags

Sole-source award lacks transparency
Potential for inflated pricing
Limited opportunity for small business participation
Lack of competitive pressure on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to LOCKHEED MARTIN CORPORATION. RADIO IMPROVEMENT PROGRAM

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 $16.2 million.

What is the period of performance?

Start: 2007-01-24. End: 2008-06-30.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as urgency, unique capabilities, or lack of available sources. Without this, it's impossible to determine if alternatives were adequately explored or if this was the only viable option.

How does the $16.17M cost compare to industry benchmarks for similar radio improvement projects, especially considering the sole-source nature?

Benchmarking this $16.17M award is challenging without detailed project scope and competitive data. However, sole-source contracts often carry a premium. A comparative analysis against publicly available data for similar, competed engineering services contracts within the defense sector would be necessary to identify potential cost deviations.

What are the long-term implications for the Air Force's radio capabilities and future procurement strategies given this sole-source award?

This award suggests a potential reliance on Lockheed Martin for specific radio improvements. Long-term, this could impact the Air Force's ability to leverage competitive market forces for future upgrades, potentially leading to higher lifecycle costs if not managed strategically. It also raises questions about maintaining diverse vendor relationships.

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: FIRM 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

Financial Breakdown

Contract Ceiling: $19,677,174

Exercised Options: $18,485,174

Current Obligation: $16,173,674

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F4262001D0058

IDV Type: IDC

Timeline