DOD awards $22.8M for M1A1 Tank Parts to Lockheed Martin, facing limited competition
Contract Overview
Contract Amount: $22,863,332 ($22.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-11-01
End Date: 2017-07-31
Contract Duration: 1,733 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M1A1 MOBILE PLATOON AGTS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $22.9 million to LOCKHEED MARTIN CORPORATION for work described as: M1A1 MOBILE PLATOON AGTS Key points: 1. Significant contract value for specialized tank components. 2. Sole supplier Lockheed Martin dominates this niche. 3. Risk of overpayment due to lack of competitive bidding. 4. Spending falls within the 'Other Commercial and Service Industry Machinery Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $22.8M for M1A1 tank parts is difficult to assess without comparable contract data. However, the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not available for competition, indicating a sole-source or limited source situation. This significantly restricts price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure on pricing for these critical tank components.
Public Impact
Ensures continued operational readiness of M1A1 Abrams tanks. Supports a major defense contractor and its supply chain. Potential for taxpayer funds to be used inefficiently due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for cost overruns
- Sole source dependency
Positive Signals
- Supports critical defense equipment
- Long-term contract for sustainment
Sector Analysis
This contract falls under the 'Other Commercial and Service Industry Machinery Manufacturing' sector, which includes specialized equipment manufacturing. Defense spending in this area is crucial for maintaining military hardware.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a large prime contractor, Lockheed Martin Corporation.
Oversight & Accountability
The contract type is 'DEFINITIVE CONTRACT' with a 'FIRM FIXED PRICE' structure. Oversight would focus on ensuring delivery and quality standards are met, especially given the limited competition.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for price gouging
- Dependency on a single supplier
- Contract duration extends over several years
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 $22.9 million to LOCKHEED MARTIN CORPORATION. M1A1 MOBILE PLATOON AGTS
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 $22.9 million.
What is the period of performance?
Start: 2012-11-01. End: 2017-07-31.
What is the justification for limiting competition on this contract?
The justification for limiting competition is not provided in the data. Typically, sole-source or limited-source contracts are awarded when only one or a few sources can fulfill the requirement due to specialized capabilities, proprietary technology, or urgent needs. Further investigation would be required to understand the specific rationale.
How does the lack of competition impact the overall cost-effectiveness of M1A1 tank sustainment?
The lack of competition inherently raises concerns about cost-effectiveness. Without competing bids, there's less pressure on the contractor to offer the lowest possible price. This can lead to higher per-unit costs and potentially increased overall spending on M1A1 sustainment over the life of the contract.
Are there alternative solutions or suppliers that could be considered for future M1A1 parts procurement?
Future procurement strategies should explore opportunities to introduce competition. This could involve breaking down the requirement into smaller lots, seeking out potential second-source manufacturers, or investing in research and development for alternative parts. Proactive market research is key to fostering competition.
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
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: $22,863,332
Exercised Options: $22,863,332
Current Obligation: $22,863,332
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-01
Current End Date: 2017-07-31
Potential End Date: 2017-07-31 00:00:00
Last Modified: 2018-01-22
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