DoD Awards $33.4M Contract for Countermeasures to Lockheed Martin, Limiting Competition
Contract Overview
Contract Amount: $33,410,620 ($33.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-20
End Date: 2027-04-30
Contract Duration: 1,318 days
Daily Burn Rate: $25.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RECEIVER, COUNTERMEA
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $33.4 million to LOCKHEED MARTIN CORPORATION for work described as: RECEIVER, COUNTERMEA Key points: 1. Significant award to a major defense contractor. 2. Limited competition raises questions about price discovery. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on aircraft parts suggests a critical supply chain component.
Value Assessment
Rating: questionable
The contract value of $33.4 million for countermeasures is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for aircraft parts. Benchmarking is challenging without more data on the specific countermeasures.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited source selection. This approach may be justified by specific technical requirements or urgency, but it bypasses the potential for price reductions and innovation that open competition can foster.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these countermeasures, as the government did not leverage market forces to secure the best possible price.
Public Impact
Taxpayers may be overpaying for essential defense components. Reliance on a single supplier could create future supply chain vulnerabilities. Lack of transparency in the procurement process reduces public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpricing
- Sole-source justification unclear
Positive Signals
- Award to established contractor
- Long-term contract duration
Sector Analysis
The Department of Defense frequently procures aircraft parts and related equipment. Spending in this sector is vast, and competitive bidding is typically employed to manage costs effectively. This contract's non-competitive nature stands out.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific award, either as subcontractors or direct awardees.
Oversight & Accountability
The non-competitive award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable and that the justification for limited competition is robust and documented.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- Sole-source risk
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 $33.4 million to LOCKHEED MARTIN CORPORATION. RECEIVER, COUNTERMEA
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $33.4 million.
What is the period of performance?
Start: 2023-09-20. End: 2027-04-30.
What specific technical or urgency factors necessitated a non-competitive award for these countermeasures?
The justification for a non-competitive award typically involves factors such as unique technical capabilities possessed by only one source, critical urgency where competition would cause unacceptable delays, or situations where only one responsible source exists. Without specific documentation, the exact reasons remain unclear, but these are the standard criteria considered.
How does the unit cost of these countermeasures compare to similar items procured competitively by the DoD?
Direct comparison is difficult without knowing the exact specifications of the countermeasures and accessing historical pricing data for similar, competitively procured items. However, non-competitive awards generally carry a higher risk of inflated pricing compared to those secured through open bidding processes, which foster price discovery and market competition.
What is the long-term strategy for ensuring a competitive supply of these countermeasures beyond the current contract's expiration?
The long-term strategy is not evident from this award alone. The agency should consider market research and planning for future procurements to introduce competition, potentially through breaking down requirements, encouraging new entrants, or developing alternative solutions to mitigate reliance on a single source.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRTA121R0129
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE RT 17 C, OWEGO, NY, 13827
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: $33,410,620
Exercised Options: $33,410,620
Current Obligation: $33,410,620
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $5,213,156
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-09-20
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2025-08-15
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)