DoD Awards $196M Contract to Lockheed Martin for MH-60R Aircraft Components

Contract Overview

Contract Amount: $49,839,343 ($49.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-15

End Date: 2011-07-20

Contract Duration: 2,499 days

Daily Burn Rate: $19.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200412!005182!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0282 !A!N! !N! ! !20040915!20050930!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000051207322!N!N!000000000000!AC14!RDTE/AIRCRAFT-DEMO/VALID !A1A!AIRFRAMES AND SPARES !191 !MH-60R !336411!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!N!U!1!001!N!1G!Z!Y!Z! ! !N!C!Y! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $49.8 million to LOCKHEED MARTIN CORPORATION for work described as: 200412!005182!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0282 !A!N! !N! ! !20040915!20050930!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORAN… Key points: 1. The contract, valued at $196,189,385, is for airframes and spares for the MH-60R helicopter. 2. Lockheed Martin Corporation, a major defense contractor, is the sole recipient of this award. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. This spending falls within the Defense sector, specifically Aircraft Manufacturing.

Value Assessment

Rating: fair

The total contract value is $196,189,385. Without specific per-unit cost data or benchmarks for MH-60R components, a direct pricing assessment is difficult. However, the cost-plus-fixed-fee structure warrants scrutiny for potential inefficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and may result in higher costs for the government compared to a competitive procurement.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competition.

Public Impact

Supports critical military aviation capabilities for the U.S. Navy. Ensures continued operation and maintenance of the MH-60R Seahawk helicopter fleet. Sustains jobs and economic activity within the aerospace and defense industry. Potential for increased costs due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee contract type can incentivize higher costs.
Long contract duration (2499 days) increases exposure to potential cost increases.

Positive Signals

Addresses a critical need for aviation components.
Awarded to a known and experienced defense contractor.

Sector Analysis

This contract falls under the Defense sector, specifically Aircraft Manufacturing. Spending in this area is crucial for national security and maintaining military readiness. Benchmarks for similar sole-source component contracts would be needed for a more precise value assessment.

Small Business Impact

This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this specific award data, suggesting limited direct small business participation.

Oversight & Accountability

The award was managed by the Defense Contract Management Agency (DCMA). Oversight would focus on ensuring contract terms are met, costs are reasonable under the CPFF structure, and delivery schedules are adhered to.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of transparency on cost breakdown
Potential for cost overruns
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.8 million to LOCKHEED MARTIN CORPORATION. 200412!005182!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0282 !A!N! !N! ! !20040915!20050930!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000051207322!N!N!000000000000!AC14!RDTE/AIRCRAFT-DEMO/VALID !A1A!AIRFRAMES AND SPARES !191 !MH-60R !336411!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $49.8 million.

What is the period of performance?

Start: 2004-09-15. End: 2011-07-20.

What is the specific breakdown of costs within this Cost Plus Fixed Fee contract, and how does the fixed fee compare to industry standards for similar sole-source procurements?

The provided data does not detail the cost breakdown or the fixed fee percentage. A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs plus a predetermined fixed fee. To assess value, one would need to analyze the contractor's cost submissions, the reasonableness of the fee against industry norms for sole-source procurements of this complexity, and compare it to historical data for similar MH-60R components if available.

Given the sole-source nature, what mechanisms are in place to mitigate the risk of inflated pricing and ensure fair market value is achieved for these aircraft components?

While sole-source awards inherently limit competitive pressure, mitigation strategies can include rigorous government cost analysis, negotiation of the fixed fee based on historical data and independent cost estimates, and robust oversight of contractor performance and cost reporting. The Defense Contract Management Agency (DCMA) plays a key role in monitoring these aspects throughout the contract lifecycle to ensure taxpayer funds are used efficiently.

How effective is the MH-60R helicopter program, and how critical are these specific airframe and spare components to its overall operational readiness and mission success?

The MH-60R Seahawk is a highly capable maritime helicopter used extensively by the U.S. Navy for anti-submarine warfare, anti-surface warfare, and search and rescue missions. Airframes and spares are fundamental to maintaining the operational readiness and availability of this critical platform. Ensuring a steady supply through contracts like this is vital for the Navy's ability to execute its missions effectively.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 WEST SAND LAKE ROAD, ORLANDO, FL, 90

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline