DoD Awards $36.4M for Radar Interferometer to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $36,403,473 ($36.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-12-13
End Date: 2016-04-29
Contract Duration: 1,599 days
Daily Burn Rate: $22.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MODERNIZED RADAR FREQUENCY INTERFEROMETER
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $36.4 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED RADAR FREQUENCY INTERFEROMETER Key points: 1. Significant award of $36.4M to a single vendor. 2. Sole-source award raises concerns about price discovery. 3. Contract duration of nearly 4 years. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract value of $36.4M for a modernized radar frequency interferometer is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Limited visibility into the specific technological advancements or capabilities of the awarded interferometer. Potential missed opportunities for innovation from other industry players.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Definitive contract awarded
- Firm fixed price contract type
Sector Analysis
The award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector can vary widely, but significant sole-source awards warrant scrutiny to ensure value for money.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could indicate a lack of outreach or specific requirements that excluded them.
Oversight & Accountability
The sole-source nature of this award suggests potential gaps in oversight regarding competitive sourcing strategies. Further review is needed to understand why this was not competed.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited vendor options
- No small business inclusion
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.4 million to LOCKHEED MARTIN CORPORATION. MODERNIZED RADAR FREQUENCY INTERFEROMETER
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 $36.4 million.
What is the period of performance?
Start: 2011-12-13. End: 2016-04-29.
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 unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation, it's impossible to confirm the exact reason. However, such awards require rigorous justification to ensure taxpayer funds are used efficiently and that the government explored all viable competitive options.
How can the Department of Defense ensure fair pricing when awarding sole-source contracts for specialized equipment like radar interferometers?
Ensuring fair pricing on sole-source contracts involves robust cost analysis, independent government cost estimates, and potentially negotiating with the vendor based on historical data or industry benchmarks. Utilizing certified cost and pricing data, along with expert negotiation teams, can help mitigate the risks associated with a lack of competition and protect taxpayer interests.
What is the long-term strategic impact of awarding significant contracts like this without competition on the broader defense industrial base?
Consistently awarding sole-source contracts can stifle innovation and competition within the defense industrial base by limiting opportunities for new entrants and smaller, agile companies. This can lead to vendor lock-in, reduced technological advancement, and potentially higher long-term costs. Encouraging competition, where feasible, fosters a more dynamic and cost-effective industrial ecosystem.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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: 1801 STATE RT 17 C, 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: $36,403,473
Exercised Options: $36,403,473
Current Obligation: $36,403,473
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $67,485
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-12-13
Current End Date: 2016-04-29
Potential End Date: 2016-04-29 12:04:00
Last Modified: 2019-08-22
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