DoD Awards $48.3M B-1B DSU Contract to Lockheed Martin for Navigation Systems
Contract Overview
Contract Amount: $48,346,488 ($48.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2027-07-30
Contract Duration: 1,036 days
Daily Burn Rate: $46.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BAND 8 RFS AND EPACU FOR B-1B DSU
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $48.3 million to LOCKHEED MARTIN CORPORATION for work described as: BAND 8 RFS AND EPACU FOR B-1B DSU Key points: 1. Significant award to a major defense contractor for critical aircraft systems. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract (over 2.5 years) suggests ongoing need for these components. 4. Focus on navigation and guidance systems highlights a key area of defense spending.
Value Assessment
Rating: questionable
The contract's value of $48.3M for navigation systems appears substantial. Without comparable sole-source contracts or detailed cost breakdowns, it's difficult to definitively assess its value. The firm fixed-price structure offers some cost certainty, but the lack of competition limits benchmarking.
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 approach bypasses competitive bidding, potentially leading to higher prices than if multiple vendors had vied for the contract. The rationale for sole-sourcing is not provided.
Taxpayer Impact: Taxpayer funds are being used for this sole-source award, with potential for overpayment due to the lack of competitive pressure.
Public Impact
Ensures continued operational readiness for the B-1B bomber fleet. Supports advanced navigation and guidance capabilities crucial for mission success. Maintains critical defense industrial base capabilities within Lockheed Martin. Potential for increased costs to taxpayers due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Supports critical defense asset
- Firm fixed-price contract
- Long-term duration indicates sustained need
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aerospace and defense electronics manufacturing. Spending in this area is driven by national security requirements and the need to maintain advanced military platforms. Benchmarks for similar sole-source navigation system contracts are difficult to ascertain without proprietary data.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for large, sole-source defense procurements.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. The lack of competition raises questions about the effectiveness of oversight in ensuring the best possible price and value for taxpayers.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs without competitive bidding.
- Lack of transparency regarding justification for sole-sourcing.
- No clear indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.3 million to LOCKHEED MARTIN CORPORATION. BAND 8 RFS AND EPACU FOR B-1B DSU
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 $48.3 million.
What is the period of performance?
Start: 2024-09-27. End: 2027-07-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The provided data does not include the justification for the sole-source award. Typically, such justifications involve proprietary technology, unique capabilities, or lack of alternative sources. Without this information, it's impossible to assess the fairness and reasonableness of the pricing beyond the firm fixed-price nature of the contract.
How does the per-unit cost of these navigation systems compare to similar systems procured competitively or through other sole-source contracts?
A direct comparison of per-unit costs is not possible with the given data. The contract value is a total award amount, and the number of units is not specified. Furthermore, the sole-source nature of this award makes finding directly comparable competitive contracts challenging. Benchmarking would require access to detailed cost data and market research.
What is the long-term strategic value of maintaining this specific navigation system with Lockheed Martin, and are there plans for future competition?
The long-term strategic value lies in ensuring the continued operational capability of the B-1B bomber fleet, which relies on these systems. Future competition is unlikely if the technology remains proprietary or if Lockheed Martin is the sole qualified provider. However, periodic reviews might be conducted to reassess the market.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $48,346,488
Exercised Options: $48,346,488
Current Obligation: $48,346,488
Subaward Activity
Number of Subawards: 59
Total Subaward Amount: $13,300,832
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRWA124D0008
IDV Type: IDC
Timeline
Start Date: 2024-09-27
Current End Date: 2027-07-30
Potential End Date: 2027-07-30 00:00:00
Last Modified: 2025-03-25
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