Lockheed Martin Awarded $949.7M for Missile and Space Systems, Reflecting 1996 Contract
Contract Overview
Contract Amount: $113,318,397 ($113.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 1996-11-02
End Date: 2007-04-18
Contract Duration: 3,819 days
Daily Burn Rate: $29.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: 199703!5700!0020!GZ74 !SMC/PKV2 !F0470196C0002 !A!*!P00002 !19961102!19991130!949686257!959409160!834951691!N!0DML0!LOCKHEED MARTIN CORPORATION !12999 W DEER CREEK CANYON !LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAPAHOE !COLORADO !0001!+000043360000!N!N!000000000000!AR34!RDTE/SPACE FLIGHT - DEMO/VALID !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !3671!3!*!*!C!B!A!*!C !N!J!2!001!N!1G!A!Y!Z!* !* !Y!C!*!A!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: LITTLETON, JEFFERSON County, COLORADO, 80127
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $113.3 million to LOCKHEED MARTIN CORPORATION for work described as: 199703!5700!0020!GZ74 !SMC/PKV2 !F0470196C0002 !A!*!P00002 !19961102!19991130!949686257!959409160!834951691!N!0DML0!LOCKHEED MARTIN CORPORATION !12999 W DEER CREEK CANYON !LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAPAH… Key points: 1. Significant contract value of nearly $950 million awarded to Lockheed Martin Corporation. 2. Contract awarded by the Department of Defense, managed by DCMA. 3. Classified as 'NOT COMPETED', raising questions about the procurement process. 4. The contract spans RDTE/SPACE FLIGHT - DEMO/VALID activities, indicating research and development focus.
Value Assessment
Rating: questionable
The contract value of $949,686,257 is substantial. Without comparable contracts for similar R&D/space flight demonstration activities, a precise pricing assessment is difficult. However, the 'NOT COMPETED' status suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. This lack of competition limits price discovery and may lead to less favorable pricing for the government.
Taxpayer Impact: The absence of competition for a nearly $950 million contract raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The contract supports advanced defense technology development, potentially impacting national security. Long contract duration (1996-2007) suggests a significant, long-term investment in this technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Supports critical R&D in space flight
- Awarded to a major defense contractor
Sector Analysis
This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically for space flight demonstrations and validation. Spending in this area is critical for technological advancement but requires careful oversight due to its complexity and often unique nature.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made directly to a large corporation.
Oversight & Accountability
The 'NOT COMPETED' designation warrants further investigation into the justification for bypassing the competitive bidding process. Oversight is crucial to ensure the necessity and fairness of sole-source awards, especially for large-value contracts.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition raises concerns about price fairness.
- Potential for cost overruns in R&D projects.
- Long contract duration may indicate inflexibility.
- Classification of specific details could obscure oversight.
Tags
department-of-defense, co, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.3 million to LOCKHEED MARTIN CORPORATION. 199703!5700!0020!GZ74 !SMC/PKV2 !F0470196C0002 !A!*!P00002 !19961102!19991130!949686257!959409160!834951691!N!0DML0!LOCKHEED MARTIN CORPORATION !12999 W DEER CREEK CANYON !LITTLETON !CO!80127!45255!005!08!LITTLETON !ARAPAHOE !COLORADO !0001!+000043360000!N!N!000000000000!AR34!RDTE/SPACE FLIGHT - DEMO/VALID !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !3671!3!*!*!C!B!A!*!C !N!J!2!0
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 $113.3 million.
What is the period of performance?
Start: 1996-11-02. End: 2007-04-18.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The data indicates the contract was 'NOT COMPETED'. A thorough review would be needed to ascertain the specific justification provided by the Department of Defense at the time of award. This could include factors like unique capabilities, urgent need, or lack of viable alternatives. Without this detailed justification, it's difficult to fully assess the necessity of the sole-source approach.
How does the awarded price compare to independent cost estimates or benchmarks for similar RDTE/space flight projects?
Given the 'NOT COMPETED' status and the specialized nature of RDTE/space flight, establishing direct comparable benchmarks is challenging. An independent cost analysis would be required, comparing the contract's cost elements against industry standards for similar research and development efforts. The lack of competition inherently limits the ability to validate price reasonableness through market forces.
What are the key performance indicators and milestones for this contract, and how has Lockheed Martin performed against them?
The provided data does not detail the specific performance metrics or milestones associated with this contract. To assess effectiveness, a review of contract performance reports, delivery schedules, and technical outcomes would be necessary. Understanding the success criteria and Lockheed Martin's adherence to them is crucial for evaluating the overall value and effectiveness of this significant investment.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 12999 W DEER CREEK CANYON, LITTLETON, CO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1996-11-02
Current End Date: 2007-04-18
Potential End Date: 2007-04-18 00:00:00
Last Modified: 2012-09-25
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