DoD Awards $56.4M to Lockheed Martin for Receiver Countermeasures, Lacking Competition
Contract Overview
Contract Amount: $56,406,399 ($56.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-02
End Date: 2031-08-01
Contract Duration: 2,159 days
Daily Burn Rate: $26.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COUNTERMEASURES RECEIVER
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $56.4 million to LOCKHEED MARTIN CORPORATION for work described as: COUNTERMEASURES RECEIVER Key points: 1. Significant contract value of $56.4 million awarded. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long contract duration of 7 years (2025-2031) impacts flexibility. 4. Focus on 'Other Aircraft Parts' suggests specialized defense needs.
Value Assessment
Rating: questionable
The contract value of $56.4 million for receiver countermeasures is difficult to benchmark without specific unit details. However, the lack of competition suggests potential overpricing compared to a competitive scenario.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $56.4 million contract likely results in higher costs for taxpayers than if multiple vendors had vied for the work.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Dependence on a single supplier could create supply chain vulnerabilities. The long contract duration might not reflect evolving technological needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Established contractor (Lockheed Martin)
- Clear contract end date
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to aircraft parts. Spending in this area is often driven by national security requirements and can involve specialized, high-cost components.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses. The award to a large corporation like Lockheed Martin suggests minimal direct benefit to small businesses in this specific transaction.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. The Defense Logistics Agency should provide justification for the lack of competition.
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 overpricing
- Long contract duration
- Limited small business participation
- Supply chain risk due to single source
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 $56.4 million to LOCKHEED MARTIN CORPORATION. COUNTERMEASURES RECEIVER
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 $56.4 million.
What is the period of performance?
Start: 2025-09-02. End: 2031-08-01.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must conduct market research and price analyses to ensure the price is fair and reasonable, even without competition. Documentation of these steps is crucial for accountability.
How does the $56.4 million price compare to similar receiver countermeasures procured competitively?
Without competitive data, a direct comparison is impossible. However, sole-source contracts are inherently at higher risk of inflated pricing. Benchmarking against similar, competitively awarded contracts for comparable systems, if available, would be necessary to assess value for money. The long duration also complicates year-over-year cost comparisons.
What is the potential impact of this long-term, sole-source contract on future technological advancements in countermeasures?
A long-term, sole-source contract can stifle innovation by reducing the incentive for the incumbent to invest in cutting-edge solutions and discouraging other companies from developing competing technologies. This can lead to the government being locked into potentially outdated systems, missing out on more effective or cost-efficient advancements.
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: SPRTA124R0032
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE ROUTE 17C, 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: $56,406,399
Exercised Options: $56,406,399
Current Obligation: $56,406,399
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-09-02
Current End Date: 2031-08-01
Potential End Date: 2031-08-01 00:00:00
Last Modified: 2025-09-04
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