DoD Awards $10.4M Contract to Lockheed Martin for Missile Vehicle Parts, Facing Limited Competition
Contract Overview
Contract Amount: $10,409,420 ($10.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-05-26
End Date: 2025-05-25
Contract Duration: 1,095 days
Daily Burn Rate: $9.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: P3MSC W31P4Q22D0022 CY22 BASIC LABOR - LOG TASK ORDER
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to LOCKHEED MARTIN CORPORATION for work described as: P3MSC W31P4Q22D0022 CY22 BASIC LABOR - LOG TASK ORDER Key points: 1. The contract value is $10.4 million, awarded to a single large business. 2. Competition was limited, raising potential concerns about price discovery. 3. The sector is 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing'. 4. The contract type is Cost Plus Incentive Fee, which can shift risk but requires careful oversight.
Value Assessment
Rating: fair
The contract value of $10.4 million for a 3-year period needs comparison against similar sole-source or limited-competition contracts for missile vehicle parts. Without benchmarks, assessing if this price is reasonable is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a sole-source or limited competition scenario. This lack of robust competition may lead to higher prices than if multiple vendors had vied for the contract, impacting price discovery.
Taxpayer Impact: The absence of full and open competition for this $10.4 million award means taxpayers may not be receiving the best possible price, as competitive pressures are reduced.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense relies on specialized parts, making competition challenging but crucial. Long-term contracts can lock in pricing, but also limit opportunities for cost savings through new vendors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Incentive Fee contract type
- No small business participation indicated
Positive Signals
- Awarded to a known entity (Lockheed Martin)
- Contract duration aligns with potential program needs
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for guided missile and space vehicle parts. Spending in this sector is often characterized by high R&D costs and specialized production, which can influence contract types and pricing.
Small Business Impact
There is no indication of small business participation in this contract award. Given the specialized nature of missile vehicle parts, it's possible that opportunities for small businesses are limited, or that subcontracting plans were not detailed.
Oversight & Accountability
The Cost Plus Incentive Fee structure requires diligent oversight from the Department of Defense to ensure costs are controlled and incentives are appropriately applied. Monitoring performance and expenditures will be key to accountability.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Cost Plus Incentive Fee contracts require significant oversight.
- No small business participation identified.
- Potential for vendor lock-in due to specialized parts.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to LOCKHEED MARTIN CORPORATION. P3MSC W31P4Q22D0022 CY22 BASIC LABOR - LOG TASK ORDER
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 $10.4 million.
What is the period of performance?
Start: 2022-05-26. End: 2025-05-25.
What is the historical pricing for similar missile vehicle parts procured under competitive contracts to establish a benchmark for this award?
Establishing a benchmark requires analyzing historical data for comparable missile vehicle parts procured through full and open competition. This involves identifying contracts with similar specifications, quantities, and contract types, and adjusting for inflation and market fluctuations. Without such data, assessing the value for money in this $10.4 million award is challenging.
What specific factors necessitated a limited competition approach for this contract, and what are the associated risks to cost control?
The necessity for limited competition likely stems from the specialized nature of the parts, proprietary technology, or unique manufacturing capabilities held by Lockheed Martin. The primary risk to cost control is the absence of competitive pressure, which can lead to inflated prices. The Cost Plus Incentive Fee structure attempts to mitigate this by incentivizing cost efficiency, but requires robust government oversight.
How will the effectiveness of this contract be measured, particularly given the Cost Plus Incentive Fee structure and limited competition?
Effectiveness will be measured by tracking key performance indicators related to delivery timelines, quality of parts, and adherence to cost targets, especially the incentive fee component. The Department of Defense must actively monitor Lockheed Martin's performance against these metrics and the contract's objectives. Regular reviews and audits will be crucial to ensure the contract delivers the required capabilities at a reasonable cost.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $10,409,420
Exercised Options: $10,409,420
Current Obligation: $10,409,420
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,174,102
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q22D0022
IDV Type: IDC
Timeline
Start Date: 2022-05-26
Current End Date: 2025-05-25
Potential End Date: 2025-05-25 12:05:00
Last Modified: 2025-12-11
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