DoD Awards $308M to Lockheed Martin for Aircraft Parts, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $30,814,318 ($30.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2015-12-08
End Date: 2019-03-29
Contract Duration: 1,207 days
Daily Burn Rate: $25.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RECEIVER,TRANSMITTE
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to LOCKHEED MARTIN CORPORATION for work described as: RECEIVER,TRANSMITTE Key points: 1. Significant contract value of $308 million awarded to a major defense contractor. 2. Sole-source award indicates limited competition, potentially impacting price discovery. 3. Contract duration of over 1000 days suggests a long-term need for these parts. 4. The 'Other Aircraft Parts' sector is critical for defense readiness.
Value Assessment
Rating: questionable
The contract value is substantial. Without competitive bidding, it's difficult to assess if the firm fixed price represents fair value compared to market rates for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to lower bids.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these aircraft parts, as market forces were not leveraged to ensure the best possible price.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract could lock in potentially inflated prices. Dependence on a single supplier for critical aircraft parts poses a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Established contractor with proven capabilities
- Firm fixed price contract limits cost overrun risk for the government
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a vital component of the defense industrial base. Spending in this area is often driven by specific platform needs and can be subject to sole-source awards when specialized parts are required.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data, suggesting this award did not directly benefit small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is reasonable and that future procurements are competed whenever possible to maximize value for taxpayers.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for inflated pricing due to sole-source award.
- Lack of transparency in the procurement process.
- Risk of vendor lock-in for critical components.
- Limited opportunity for small business participation.
- Long contract duration may not reflect current market conditions.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to LOCKHEED MARTIN CORPORATION. RECEIVER,TRANSMITTE
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $30.8 million.
What is the period of performance?
Start: 2015-12-08. End: 2019-03-29.
What specific aircraft parts are being procured under this contract, and why are they only available from Lockheed Martin?
The data indicates 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' but does not specify the exact parts. A sole-source justification would typically detail the unique nature of the parts, proprietary technology, or essential support for specific platforms that necessitate procurement from a single provider, justifying the lack of competition.
What was the basis for the sole-source justification, and were alternative solutions considered?
The provided data does not include the specific justification for the sole-source award. Typically, agencies must demonstrate that only one responsible source can provide the required supplies or services. This could be due to proprietary data, unique capabilities, or urgent and compelling needs. A review of the contract file would reveal the detailed justification and any consideration of alternatives.
How does the firm fixed price compare to industry benchmarks for similar aircraft parts, given the lack of competition?
Without competitive bids, establishing a precise benchmark is challenging. However, agencies often use historical pricing, commercial price lists (if applicable), or independent cost estimates to validate prices on sole-source contracts. A thorough review would involve comparing the negotiated price against these benchmarks to ensure it is fair and reasonable.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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 (UEI: 834951691)
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: $30,814,318
Exercised Options: $30,814,318
Current Obligation: $30,814,318
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRWA113D2000
IDV Type: IDC
Timeline
Start Date: 2015-12-08
Current End Date: 2019-03-29
Potential End Date: 2019-03-29 00:00:00
Last Modified: 2019-02-21
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