DoD awards $175M to Lockheed Martin for Guided Missile Manufacturing, a sole-source contract
Contract Overview
Contract Amount: $174,910,770 ($174.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2005-12-28
End Date: 2010-06-30
Contract Duration: 1,645 days
Daily Burn Rate: $106.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $174.9 million to LOCKHEED MARTIN CORPORATION for work described as: Key points: 1. Significant award value of $174.9M. 2. Sole-source award to Lockheed Martin, limiting competition. 3. Contract duration of 1645 days suggests a long-term need. 4. Firm Fixed Price contract type aims to control costs.
Value Assessment
Rating: questionable
Benchmarking is difficult without specific product details. However, the sole-source nature and significant value raise questions about whether the pricing reflects competitive market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $175M contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially inflated prices. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Firm Fixed Price contract
Sector Analysis
This contract falls under Guided Missile and Space Vehicle Manufacturing, a critical sector within the defense industry. Spending in this area is often characterized by high R&D costs and specialized manufacturing capabilities, which can sometimes justify sole-source awards, but require careful oversight.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure fair pricing and effective delivery. Accountability mechanisms should be robust to mitigate risks associated with limited competition.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency
- Reduced incentive for innovation
- Long-term commitment without competition
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $174.9 million to LOCKHEED MARTIN CORPORATION. See the official description on USAspending.
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 $174.9 million.
What is the period of performance?
Start: 2005-12-28. End: 2010-06-30.
What justification was provided for the sole-source award, and how does it align with federal procurement regulations for non-competitive contracts?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. Agencies must document the justification thoroughly, often citing unique capabilities, urgent needs, or lack of viable alternatives. The justification for this contract would need to demonstrate why competition was not feasible or advantageous to the government.
How was the 'fair and reasonable' price determined for this sole-source contract, and what benchmarks were used?
Determining a fair and reasonable price for a sole-source contract typically involves price analysis techniques. This can include analyzing historical pricing for similar items, using cost realism analysis to evaluate the contractor's proposed costs, or comparing prices to commercial item equivalents if applicable. Without access to the specific price negotiation documentation, it's difficult to assess the rigor of this process.
What are the long-term implications of this sole-source award on future competition and innovation in the guided missile sector?
Sole-source awards, especially for significant durations and values, can stifle future competition by creating barriers to entry for potential competitors. It may also reduce incentives for innovation if the incumbent contractor faces no competitive pressure. Over time, this could lead to a less dynamic market and potentially higher costs for the government in subsequent procurements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
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 W MARSHALL DRIVE, GRAND PRAIRIE, TX, 75051
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-12-28
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2016-06-28
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