DoD awards $221M for Apache Helicopter Production, with Lockheed Martin as sole provider

Contract Overview

Contract Amount: $221,319,735 ($221.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2020-03-06

End Date: 2026-12-31

Contract Duration: 2,491 days

Daily Burn Rate: $88.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MTADS PRODUCTION FOR THE APACHE ATTACK HELICOPTER 64D/E

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $221.3 million to LOCKHEED MARTIN CORPORATION for work described as: MTADS PRODUCTION FOR THE APACHE ATTACK HELICOPTER 64D/E Key points: 1. Significant investment in critical defense platform. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long-term contract (2020-2026) indicates sustained need. 4. Focus on aircraft manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $221.3M for Apache helicopter production is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar defense contracts or potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This 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 taxpayers.

Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for the MTADS production.

Public Impact

Ensures continued production of a key military asset. Supports jobs in the aerospace and defense industry. Potential for higher costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration without re-competition

Positive Signals

Essential defense equipment
Established manufacturer

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often driven by national security needs and can involve high unit costs due to specialized technology and R&D.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. As a sole-source award to a large corporation, direct small business participation may be limited unless subcontracted.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure the government receives the best value. Regular reviews of performance, cost, and adherence to contract terms by the Department of the Army are necessary.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Potential for cost overruns due to lack of price discovery.
Long-term dependency on a single contractor.
Limited transparency on pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $221.3 million to LOCKHEED MARTIN CORPORATION. MTADS PRODUCTION FOR THE APACHE ATTACK HELICOPTER 64D/E

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 $221.3 million.

What is the period of performance?

Start: 2020-03-06. End: 2026-12-31.

What is the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For defense systems like the Apache helicopter, this might be due to proprietary technology, unique manufacturing capabilities, or essential integration with existing platforms that only the original manufacturer possesses.

What are the potential risks associated with a sole-source contract for critical defense equipment?

The primary risk is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Additionally, reliance on a single supplier can create supply chain vulnerabilities and limit the government's leverage in negotiations, potentially impacting long-term affordability and availability.

How will the effectiveness of this MTADS production contract be measured?

Effectiveness will likely be measured by the timely delivery of Apache helicopters meeting all specified technical requirements and performance standards. The Department of the Army will monitor production milestones, quality control, and operational readiness of the delivered aircraft to ensure the contract fulfills its intended purpose.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: ENGINE ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819

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: $221,319,735

Exercised Options: $221,319,735

Current Obligation: $221,319,735

Subaward Activity

Number of Subawards: 442

Total Subaward Amount: $69,624,306

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J17D0043

IDV Type: IDC

Timeline