DOT's FAA Spends $115.8M on Legacy Communications Equipment from Lockheed Martin
Contract Overview
Contract Amount: $115,788,213 ($115.8M)
Contractor: Lockheed Martin Services, LLC
Awarding Agency: Department of Transportation
Start Date: 2009-10-24
End Date: 2015-12-31
Contract Duration: 2,259 days
Daily Burn Rate: $51.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SUMMARIZED LEGACY LINES FROM ACQUIRE
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Transportation obligated $115.8 million to LOCKHEED MARTIN SERVICES, LLC for work described as: SUMMARIZED LEGACY LINES FROM ACQUIRE Key points: 1. Significant spending on legacy equipment highlights potential for modernization. 2. Sole-source award to Lockheed Martin raises questions about competitive pricing. 3. Long contract duration (2009-2015) suggests outdated technology. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $115.8M over six years is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar communications equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Taxpayers funded a significant amount for potentially outdated communications equipment. The FAA's reliance on a single vendor for this duration may indicate a lack of strategic sourcing or market analysis. Future spending on similar legacy systems could be avoided through proactive technology refresh strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Legacy system
- Long contract duration
- No small business participation
Positive Signals
- Firm Fixed Price contract type
Sector Analysis
Spending on 'Other Communications Equipment Manufacturing' falls under the broader IT and defense sectors. Benchmarks are difficult without specific equipment details, but large sole-source contracts for legacy items are generally a concern.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This suggests opportunities were missed to engage smaller, innovative companies in providing communications equipment.
Oversight & Accountability
The 'NOT COMPETED' status and sole-source award warrant further review by oversight bodies to ensure the government received the best value and explored all competitive options.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Procurement of 'legacy' equipment may indicate outdated technology.
- Long contract duration (over 6 years) for potentially obsolete items.
- No small business participation noted.
- Significant contract value without competitive justification.
Tags
other-communications-equipment-manufactu, department-of-transportation, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $115.8 million to LOCKHEED MARTIN SERVICES, LLC. SUMMARIZED LEGACY LINES FROM ACQUIRE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $115.8 million.
What is the period of performance?
Start: 2009-10-24. End: 2015-12-31.
What was the justification for awarding this contract on a sole-source basis, and were alternatives considered?
The data indicates the contract was 'NOT COMPETED' and awarded as a 'sole-source'. A thorough review would be needed to understand the specific justification, such as unique capabilities or lack of market availability. Without this information, it's impossible to definitively assess if alternatives were adequately explored or if this was the only viable option.
What is the current operational status and technological relevance of the 'legacy lines' procured under this contract?
The term 'legacy lines' strongly suggests the equipment is outdated. Its current operational status and relevance are critical for assessing ongoing value and potential risks. If the equipment is nearing end-of-life or unsupported, the FAA may face increased maintenance costs, security vulnerabilities, and operational inefficiencies, necessitating costly replacements.
How does the $115.8M expenditure compare to industry benchmarks for similar communications equipment over the 2009-2015 period?
Direct comparison is challenging due to the sole-source nature and 'legacy' designation. However, benchmark data for comparable, competitively procured communications systems during that timeframe would likely show a significant price difference. The absence of competition prevents a true market-based valuation, making it probable that this contract was less cost-effective than a competed one.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
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: 9211 CORPORATE BLVD, ROCKVILLE, MD, 20850
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $3,134,277,334
Exercised Options: $3,134,277,334
Current Obligation: $115,788,213
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-10-24
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2020-03-05
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