DoD Awards $37.3M to Lockheed Martin for Field Support Services, Sole-Source Contract

Contract Overview

Contract Amount: $37,291,853 ($37.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2013-06-01

End Date: 2018-02-25

Contract Duration: 1,730 days

Daily Burn Rate: $21.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR FIELD SUPPORT SERVICES

Place of Performance

Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to LOCKHEED MARTIN CORPORATION for work described as: CONTRACTOR FIELD SUPPORT SERVICES Key points: 1. Significant contract value of $37.3 million awarded. 2. Sole-source award indicates limited competition. 3. Contract duration of 1730 days spans over 4 years. 4. Focus on guided missile and space vehicle manufacturing support.

Value Assessment

Rating: fair

The contract value of $37.3 million for field support services is substantial. Without specific benchmarks for similar services within guided missile and space vehicle manufacturing, it's difficult to definitively assess pricing, but the sole-source nature raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these essential field support services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially inefficient pricing. Dependence on a single contractor for critical support services poses a risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Potential for overpricing

Positive Signals

  • Essential support services for defense manufacturing

Sector Analysis

This contract falls within the defense sector, specifically supporting guided missile and space vehicle manufacturing. Spending in this area is often characterized by high complexity and specialized requirements, which can sometimes justify sole-source awards, but vigilance on pricing is crucial.

Small Business Impact

The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors on this specific award, suggesting limited direct benefit to the small business sector.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective service 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
  • Department of the Army Programs

Risk Flags

  • Sole-source award limits competition and price discovery.
  • Potential for inflated costs due to lack of competitive pressure.
  • Long contract duration may not reflect evolving needs or technology.
  • High dependence on a single contractor for critical support.
  • Lack of transparency regarding specific services and pricing justification.

Tags

guided-missile-and-space-vehicle-manufac, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to LOCKHEED MARTIN CORPORATION. CONTRACTOR FIELD SUPPORT SERVICES

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 $37.3 million.

What is the period of performance?

Start: 2013-06-01. End: 2018-02-25.

What specific field support services are being provided under this contract, and how do they directly contribute to the operational readiness of guided missile and space vehicles?

The contract details are limited, but 'Field Support Services' typically encompass a range of activities such as on-site technical assistance, maintenance, repair, training, and logistical support for complex defense systems. For guided missile and space vehicles, this could involve ensuring the readiness and operational capability of launch systems, ground support equipment, or deployed assets, directly impacting mission success and national security.

Given the sole-source nature, what mechanisms are in place to ensure Lockheed Martin is providing these services at a fair and reasonable price, and what is the historical pricing trend for similar se

While the data doesn't specify oversight mechanisms, agencies typically employ cost analysis, should-cost reviews, and negotiation strategies to ensure fair pricing on sole-source contracts. However, the absence of competition inherently limits the government's leverage. Historical pricing data for comparable sole-source contracts within the defense sector would be necessary for a robust benchmark, but such data is not provided here.

What is the potential impact on national security if Lockheed Martin fails to adequately provide these field support services, considering the sole-source nature of the contract?

A failure to adequately provide these critical field support services could have severe national security implications. It could lead to delays in missile or space vehicle deployment, reduced operational readiness, and potential mission failures. The sole-source nature exacerbates this risk, as finding and transitioning to an alternative provider quickly would be extremely challenging and costly.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051

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: $37,291,853

Exercised Options: $37,291,853

Current Obligation: $37,291,853

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $7,917,132

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2013-06-01

Current End Date: 2018-02-25

Potential End Date: 2018-02-25 00:00:00

Last Modified: 2025-04-22

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