DoD Awards $297M Contract for Missile Propulsion Units to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $296,937,471 ($296.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2013-12-20
End Date: 2020-05-31
Contract Duration: 2,354 days
Daily Burn Rate: $126.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FRP 9 UCA REQUIREMENT
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $296.9 million to LOCKHEED MARTIN CORPORATION for work described as: FRP 9 UCA REQUIREMENT Key points: 1. Significant spending on critical missile propulsion systems. 2. Sole-source award to a major defense contractor raises competition concerns. 3. Long contract duration (2013-2020) may impact price competitiveness. 4. Focus on fixed-price incentive contract type for cost control.
Value Assessment
Rating: questionable
The contract value of $297 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous contracts for similar propulsion units.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition on a nearly $300 million contract likely results in taxpayers paying a premium compared to a competitively awarded contract.
Public Impact
Ensures continued supply of critical missile propulsion components for national defense. Potential for cost overruns due to lack of competitive pressure. Reliance on a single contractor for essential defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Fixed Price Incentive contract type aims to control costs
- Essential defense procurement
Sector Analysis
This contract falls within the defense industrial base, specifically in the manufacturing of guided missile and space vehicle propulsion units. Spending in this sector is often characterized by high technical requirements and limited contractor pools, but competition is still expected where feasible.
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, which is common for large, specialized defense contracts.
Oversight & Accountability
The 'NOT COMPETED' status suggests a waiver of standard competitive procedures. Further review would be needed to understand the justification for this sole-source award and ensure appropriate oversight was applied.
Related Government Programs
- Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
- Limited transparency on justification
- Long contract duration without re-evaluation
Tags
guided-missile-and-space-vehicle-propuls, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $296.9 million to LOCKHEED MARTIN CORPORATION. FRP 9 UCA REQUIREMENT
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 $296.9 million.
What is the period of performance?
Start: 2013-12-20. End: 2020-05-31.
What was the specific justification for not competing this nearly $300 million contract for missile propulsion units?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a lack of available sources, urgent need, or specific technical requirements that only one contractor can meet. Without this justification, it's difficult to assess the necessity of the sole-source approach.
How does the fixed-price incentive contract type mitigate the risks associated with a sole-source award?
A Fixed Price Incentive (FPI) contract aims to mitigate sole-source risks by establishing target costs, target profits, and sharing arrangements for cost overruns or underruns. While it incentivizes the contractor to control costs, the absence of competition means the initial target cost may not be as optimized as it would be in a competitive scenario.
What is the long-term strategic risk of awarding such a significant contract without competition?
The long-term strategic risk includes potential over-reliance on a single supplier, stifling innovation from other potential providers, and potentially higher sustained costs for critical defense components. It may also signal to the market that competition is not always required, reducing future competitive efforts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q13R0151
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $296,937,471
Exercised Options: $296,937,471
Current Obligation: $296,937,471
Actual Outlays: $-28,146
Subaward Activity
Number of Subawards: 31
Total Subaward Amount: $195,975,935
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-12-20
Current End Date: 2020-05-31
Potential End Date: 2020-05-31 12:05:00
Last Modified: 2022-07-27
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