DoD Awards $794.6M Contract to Lockheed Martin for Aviation and Missile Command Services
Contract Overview
Contract Amount: $92,346,123 ($92.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2004-02-27
End Date: 2011-06-30
Contract Duration: 2,680 days
Daily Burn Rate: $34.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200405!002071!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q04C0076 !A!N! !Y! ! !20040227!20071231!794571448!794571448!834951691!N!LOCKHEED MARTIN CORPORATION !1701 W MARSHALL DRIVE !GRAND PRAIRIE !TX!75051!30464!113!48!GRAND PRAIRIE !DALLAS !TEXAS !+000007293574!N!N!000000000738!AD23!RDTE/SERVICES-ADV TECH DEV !S1 !SERVICES !000 !* !336414!E! !3! ! ! ! ! !99990909!B! ! !B! !D!N!J!1!001!N!1G!Z!Y!A! ! !N!C!N! ! ! !Z!A!A!A!000!A!B!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $92.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200405!002071!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q04C0076 !A!N! !Y! ! !20040227!20071231!794571448!794571448!834951691!N!LOCKHEED MARTIN CORPORATION !1701 W MARSHALL DRIVE !GRAND PRAIRIE !TX!75051!30464!113!48!GRAND PRAIRIE !DALL… Key points: 1. The contract, valued at $794.6 million, is for RDTE/Services-Advanced Tech Dev. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is primarily IT and Defense-related R&D services.
Value Assessment
Rating: fair
The contract value is substantial at $794.6 million. Benchmarking is difficult without more specific service details, but the duration and nature suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to inflated prices, impacting taxpayer value.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of the award. The significant funding allocated to a single contractor warrants scrutiny. Advanced technology development for aviation and missiles is critical for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense technology development
- Awarded to a known, experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for advanced aviation and missile technologies. Spending in this area is crucial for maintaining technological superiority but requires careful oversight.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any small business participation.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure fair pricing and effective execution of the advanced technology development services.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and price negotiation.
- Potential for overpayment due to lack of competitive bidding.
- Contract duration is lengthy (2004-2011), increasing risk over time.
- Lack of detail on specific technologies developed.
- High contract value requires significant oversight.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.3 million to LOCKHEED MARTIN CORPORATION. 200405!002071!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q04C0076 !A!N! !Y! ! !20040227!20071231!794571448!794571448!834951691!N!LOCKHEED MARTIN CORPORATION !1701 W MARSHALL DRIVE !GRAND PRAIRIE !TX!75051!30464!113!48!GRAND PRAIRIE !DALLAS !TEXAS !+000007293574!N!N!000000000738!AD23!RDTE/SERVICES-ADV TECH DEV !S1 !SERVICES !000 !* !336414!E! !3! ! ! ! ! !999
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 Army).
What is the total obligated amount?
The obligated amount is $92.3 million.
What is the period of performance?
Start: 2004-02-27. End: 2011-06-30.
What specific advanced technologies are being developed under this contract, and how do they align with current and future defense needs?
The data indicates the contract is for 'RDTE/SERVICES-ADV TECH DEV' related to aviation and missiles. Specific technologies are not detailed. A thorough review would assess if the developed technologies directly address critical defense gaps, enhance existing capabilities, or provide a strategic advantage, ensuring the substantial investment aligns with evolving national security requirements and modernization goals.
What justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The contract was designated 'NOT COMPETED'. A detailed justification for this sole-source award is essential. This should outline why only Lockheed Martin could fulfill the requirement, such as unique capabilities, proprietary technology, or urgent need. The agency should demonstrate that competitive options were explored and deemed unsuitable or impractical before resorting to a sole-source procurement.
How will the effectiveness and value for money of the developed technologies be measured and validated throughout the contract lifecycle?
Measuring effectiveness and value requires clear performance metrics and milestones defined within the contract. The Department of Defense should implement rigorous testing, evaluation, and validation processes to ensure the advanced technologies meet performance specifications and contribute to mission objectives. Regular reviews and independent assessments will be crucial to confirm that the $794.6 million investment yields tangible defense capabilities and justifies the expenditure.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
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: 1701 MARSHALL DR, GRAND PRAIRIE, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2004-02-27
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2014-07-08
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