DoD Awards $24.7M for Electronic Warfare System Support to Lockheed Martin
Contract Overview
Contract Amount: $24,695,665 ($24.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-04-04
End Date: 2025-04-30
Contract Duration: 757 days
Daily Burn Rate: $32.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE TOTAL SYSTEM SUPPORT FOR THE MULTI-FUNCTION ELECTRONIC WARFARE AIR LARGE SYSTEMS.
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.7 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE TOTAL SYSTEM SUPPORT FOR THE MULTI-FUNCTION ELECTRONIC WARFARE AIR LARGE SYSTEMS. Key points: 1. Significant contract value for specialized defense systems. 2. Sole-source award raises questions about competition and pricing. 3. Long-term support contract (757 days) indicates critical system reliance. 4. Focus on electronic warfare highlights a key defense technology area.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a sole-source award, makes it difficult to assess value without further data on labor hours and fixed fee percentage. Benchmarking is challenging due to the specialized nature of the service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this $24.7M contract may result in taxpayers paying a premium for electronic warfare system support.
Public Impact
Ensures continued operational readiness of critical electronic warfare systems. Supports advanced military technology essential for national security. Potential for cost overruns due to sole-source, cost-plus contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Essential defense system support
- Long-term contract ensures continuity
Sector Analysis
This contract falls within the Defense sector, specifically supporting advanced electronic warfare systems. Spending in this area is critical for maintaining technological superiority and national security, often involving high-value, specialized contracts.
Small Business Impact
The data indicates no specific set-aside for small businesses. Large prime contractors like Lockheed Martin typically manage these complex systems, potentially limiting direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. Robust auditing of costs and adherence to contract terms are crucial for accountability.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Lack of competition may lead to inflated pricing.
- Limited transparency on performance metrics.
- Sole-source award requires strong justification and oversight.
Tags
other-electronic-and-precision-equipment, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.7 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE TOTAL SYSTEM SUPPORT FOR THE MULTI-FUNCTION ELECTRONIC WARFARE AIR LARGE SYSTEMS.
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 $24.7 million.
What is the period of performance?
Start: 2023-04-04. End: 2025-04-30.
What is the estimated total fixed fee for this Cost Plus Fixed Fee contract, and how does it compare to industry standards for similar support services?
The provided data does not specify the fixed fee amount or percentage. For a Cost Plus Fixed Fee contract, the fixed fee represents the contractor's profit. Without this detail, it's impossible to benchmark against industry standards or assess the value proposition effectively. Further inquiry into the contract's fee structure is necessary.
Were any market research efforts conducted to identify potential alternative sources or justify the sole-source award for this electronic warfare system support?
The data states the contract was 'NOT COMPETED,' implying a sole-source justification. However, it does not detail the market research performed. Agencies are typically required to conduct market research to determine if competitive sources exist. Understanding this research is key to evaluating the necessity of a sole-source award.
What performance metrics are in place to measure the effectiveness of Lockheed Martin's total system support for the electronic warfare systems?
The contract details do not specify performance metrics or Key Performance Indicators (KPIs). Effective oversight would require clearly defined metrics related to system uptime, response times for maintenance, and successful resolution of issues. Without these, assessing the contractor's effectiveness and the overall value delivered is challenging.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE ROUTE 17C, OWEGO, NY, 13827
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: $28,815,235
Exercised Options: $24,695,665
Current Obligation: $24,695,665
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,835,346
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W56KGY21D0001
IDV Type: IDC
Timeline
Start Date: 2023-04-04
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-12-10
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