DoD Awards $196M Contract for Fire Control Systems to Lockheed Martin
Contract Overview
Contract Amount: $57,153,073 ($57.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-01-09
End Date: 2011-07-06
Contract Duration: 2,004 days
Daily Burn Rate: $28.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200604!001038!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0024 !A!N! !N! ! !20060109!20101231!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000014956450!N!N!000000000000!1260!FIRE CNTL DESIGNATING & INDICATING EQUIP !A7 !ELECTRONICS AND COMMUNICATION EQUIP !831 !LONGBOW APACHE !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!Z!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!D!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $57.2 million to LOCKHEED MARTIN CORPORATION for work described as: 200604!001038!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0024 !A!N! !N! ! !20060109!20101231!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 is for Fire Control Designating & Indicating Equipment, specifically for the LONGBOW APACHE system. 2. Awarded to Lockheed Martin Corporation, a major defense contractor, indicating potential market concentration. 3. The contract was not competed, raising questions about price discovery and potential overpayment. 4. The sector is Electronics and Communication Equipment, a critical area for defense modernization.
Value Assessment
Rating: questionable
The contract value of $196,189,385 appears high for a single firm fixed-price award. Benchmarking against similar systems or components is difficult without more granular data, but the lack of competition suggests potential for inflated pricing.
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 may lead to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this significant award raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The sole-source nature of the award could limit innovation and the adoption of potentially more cost-effective solutions. This contract contributes to the significant defense spending in the Electronics and Communication Equipment sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Sole-Source Award
Positive Signals
- Award to established prime contractor
- Supports critical defense systems
Sector Analysis
This contract falls within the Electronics and Communication Equipment sector, which is a significant portion of the Department of Defense's budget. Spending in this area often involves complex, high-value systems.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award data, suggesting potential missed opportunities for small business subcontracting.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification for the lack of competition. Further review of the procurement process is recommended.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to lack of competition.
- Limited transparency on specific component costs.
- No clear indication of small business subcontracting.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.2 million to LOCKHEED MARTIN CORPORATION. 200604!001038!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ06C0024 !A!N! !N! ! !20060109!20101231!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000014956450!N!N!000000000000!1260!FIRE CNTL DESIGNATING & INDICATING EQUIP !A7 !ELECTRONICS AND COMMUNICATION EQUIP !831 !LONGBOW APACHE !334511!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 $57.2 million.
What is the period of performance?
Start: 2006-01-09. End: 2011-07-06.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or the unavailability of alternative sources. Without specific documentation, it's difficult to ascertain the exact reason. However, the lack of competition inherently reduces the government's leverage in price negotiations and may result in higher costs than a competitively procured contract.
How does the unit cost of this fire control system compare to similar systems or previous procurements?
Direct unit cost comparison is challenging without more detailed data on the specific components and quantities within this contract, as well as access to historical pricing for similar systems. The absence of competition makes it harder to establish a reliable benchmark, but the overall contract value of $196 million suggests a substantial investment, raising the importance of cost-effectiveness.
What is the long-term strategic value of this specific fire control system to the U.S. military?
The contract is for equipment related to the LONGBOW APACHE system, which is a critical component of the AH-64 Apache attack helicopter's targeting capabilities. This system enhances the helicopter's ability to detect, identify, and engage targets, playing a vital role in air-to-ground combat and overall battlefield effectiveness. Its continued procurement and support are essential for maintaining the operational readiness of this key military asset.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-01-09
Current End Date: 2011-07-06
Potential End Date: 2011-07-06 00:00:00
Last Modified: 2010-07-06
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