DoD Awards $646M Contract to Lockheed Martin for Combat Vehicle Maintenance
Contract Overview
Contract Amount: $64,609,904 ($64.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2005-06-06
End Date: 2013-05-19
Contract Duration: 2,904 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200509!005561!2100!W56HZV!TACOM - WARREN !W56HZV05C0383 !A!N! !N! ! !20050606!20090930!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000002888919!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !* !811213!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $64.6 million to LOCKHEED MARTIN CORPORATION for work described as: 200509!005561!2100!W56HZV!TACOM - WARREN !W56HZV05C0383 !A!N! !N! ! !20050606!20090930!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOG… Key points: 1. Significant investment in maintaining critical combat vehicle capabilities. 2. Sole provider Lockheed Martin holds a strong position in this niche. 3. Long contract duration presents potential for cost overruns and evolving needs. 4. Focus on IT and communication equipment repair suggests modernization efforts.
Value Assessment
Rating: fair
The contract value of $646 million over approximately 8 years is substantial. Benchmarking against similar long-term maintenance contracts for complex defense systems is difficult without more specific data on the scope of services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but the specific nature of combat vehicle maintenance may lead to limited competition in practice, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are allocated for essential defense readiness, but the long duration and potential for limited competition warrant close monitoring for cost-effectiveness.
Public Impact
Ensures operational readiness of tracked combat vehicles for the U.S. Army. Supports advanced communication equipment, crucial for modern warfare. Long-term commitment to a single contractor may limit innovation and cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years)
- Potential for sole-source follow-on contracts
- Reliance on a single contractor for critical maintenance
Positive Signals
- Ensures sustained readiness of vital defense assets
- Supports a major defense contractor and its supply chain
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the maintenance and repair of combat vehicles and associated communication equipment. Spending in this area is critical for national security but can be subject to significant fluctuations based on geopolitical events and modernization programs.
Small Business Impact
While the prime contractor is Lockheed Martin Corporation, the contract details do not specify the extent of subcontracting to small businesses. Further analysis would be needed to determine the impact on the small business industrial base.
Oversight & Accountability
The contract's long duration necessitates robust oversight from the Department of Defense to ensure performance standards are met and costs remain justified. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Potential for limited competition
- Reliance on a single prime contractor
- Lack of specific cost per unit data
- Potential for scope creep over 8 years
Tags
communication-equipment-repair-and-maint, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.6 million to LOCKHEED MARTIN CORPORATION. 200509!005561!2100!W56HZV!TACOM - WARREN !W56HZV05C0383 !A!N! !N! ! !20050606!20090930!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE ROUTE 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000002888919!N!N!000000000000!2350!COMBAT ASSAULT & TACTICAL VEH, TRACKED !A4A!COMBAT VEHICLES !000 !* !811213!E! !3! ! ! ! ! !202
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 $64.6 million.
What is the period of performance?
Start: 2005-06-06. End: 2013-05-19.
What is the projected cost per vehicle or per repair event, and how does this compare to industry benchmarks for similar systems?
Without detailed breakdowns of services rendered and specific unit costs, a precise per-vehicle or per-repair cost benchmark is not available from the provided data. However, the total contract value of $646 million spread over approximately 8 years suggests a significant ongoing investment. Further analysis would require access to the contract's detailed CLIN structure and historical performance data to compare against similar maintenance contracts for tracked combat vehicles.
What are the risks associated with relying on a single contractor for such a critical and long-term maintenance requirement?
The primary risks include potential vendor lock-in, reduced incentive for cost efficiency and innovation due to lack of competition, and vulnerability to supply chain disruptions affecting the sole provider. If Lockheed Martin faces financial difficulties or strategic shifts, it could significantly impact the Army's combat readiness. The long duration also increases the risk of the contracted services becoming outdated or misaligned with evolving technological needs.
How effectively does this contract ensure the long-term operational readiness and modernization of the Army's combat vehicle fleet?
The contract's primary goal is to ensure operational readiness through maintenance and repair. However, its effectiveness in driving modernization is less clear from the data. While it covers communication equipment, the focus appears to be on sustaining existing platforms. The long-term nature might hinder the adoption of newer technologies if the contract isn't flexible enough to incorporate upgrades or new systems as they become available.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1801 STATE ROUTE 17C, OWEGO, NY, 13827
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-06-06
Current End Date: 2013-05-19
Potential End Date: 2016-05-27 12:05:00
Last Modified: 2016-05-26
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