DoD Awards $47.2M Contract to Lockheed Martin for Machinery Manufacturing, Facing Limited Competition
Contract Overview
Contract Amount: $47,251,065 ($47.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-05-31
End Date: 2016-12-31
Contract Duration: 2,041 days
Daily Burn Rate: $23.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DISMOUNTS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $47.3 million to LOCKHEED MARTIN CORPORATION for work described as: DISMOUNTS Key points: 1. Significant contract value awarded to a major defense contractor. 2. Limited competition raises questions about price discovery and potential overspending. 3. Contract duration is substantial, indicating a long-term need. 4. The sector is specialized, potentially limiting the pool of qualified bidders.
Value Assessment
Rating: questionable
The contract type is Firm Fixed Price, which can offer cost certainty. However, without available pricing data or benchmarks, it's difficult to assess if the $47.2 million award represents a fair value for the machinery manufacturing services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited source justification. This significantly restricts market forces and may lead to higher prices than if full and open competition were pursued.
Taxpayer Impact: Limited competition can result in taxpayers paying more than necessary for goods and services, as competitive pressures that drive down costs are absent.
Public Impact
Taxpayers may be overpaying due to lack of competitive bidding. Long-term contract could lock in potentially inflated costs for years. Focus on specialized machinery manufacturing highlights specific defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited transparency on pricing
- Long contract duration
Positive Signals
- Firm Fixed Price contract type
- Awarded to established contractor
Sector Analysis
This contract falls within the Other Commercial and Service Industry Machinery Manufacturing sector. Spending in this area is critical for defense readiness, but benchmarks are difficult to establish due to the specialized nature of the equipment and services required.
Small Business Impact
The data indicates this contract was not awarded to small businesses, which is common for large, specialized defense procurements. Opportunities for small businesses in this specific niche may be limited or indirect.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further scrutiny to ensure proper justification and adherence to procurement regulations. Oversight should focus on the rationale for limiting competition and the subsequent pricing.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Long-term commitment without competitive validation
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.3 million to LOCKHEED MARTIN CORPORATION. DISMOUNTS
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 $47.3 million.
What is the period of performance?
Start: 2011-05-31. End: 2016-12-31.
What was the specific justification for not making this contract available for competition, and were alternative competitive strategies considered?
The justification for limiting competition is crucial for understanding potential cost impacts. If a sole-source or limited competition was necessary due to unique capabilities or urgent needs, it might explain the lack of bidding. However, agencies must rigorously document these justifications to prevent potential abuse and ensure fair pricing, even in non-competitive scenarios.
How does the $47.2 million award compare to industry benchmarks for similar machinery manufacturing contracts, considering the limited competition?
Without available pricing data or a competitive landscape, direct benchmarking is challenging. However, the absence of competition inherently suggests a higher risk of the price being above market rates. A thorough review would involve comparing the scope of work and deliverables against publicly available data for comparable, competitively awarded contracts, if any exist.
What mechanisms are in place to ensure the effectiveness and value for money of this long-term contract, given its non-competitive nature?
For long-term, non-competitive contracts, robust oversight is essential. This includes regular performance reviews, clear deliverables, and potential price adjustments based on market shifts or cost efficiencies. Agencies should have mechanisms to track the contractor's performance against objectives and ensure the continued necessity and value of the services provided.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W900KK11R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,251,065
Exercised Options: $47,251,065
Current Obligation: $47,251,065
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-05-31
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2017-11-14
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