DoD's $105M contract for miscellaneous weapons to Lockheed Martin raises questions on value and competition
Contract Overview
Contract Amount: $158,723,416 ($158.7M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2003-04-16
End Date: 2007-05-31
Contract Duration: 1,506 days
Daily Burn Rate: $105.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200307!000031!5700!GM11 !AAC/YHK !F0863503C0021 !A!N! !N! !20030416!20060515!070542696!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!5600 SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000004899872!Y!N!000063799243!1095!MISCELLANEOUS WEAPONS !A1C!OTHER AIRCRAFT EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !336414!E! !3! ! ! ! ! !99990909!B! ! !N!Z!C!N!J!1!001!N!1B!Z!Y!F! ! !N!C!N! ! ! !A!A!A!A!* !A!C!Y! ! ! !Y! ! !0001! !
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $158.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200307!000031!5700!GM11 !AAC/YHK !F0863503C0021 !A!N! !N! !20030416!20060515!070542696!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!5600 SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANG… Key points: 1. The contract's value proposition is unclear due to a lack of detailed performance metrics and a non-competitive award. 2. Competition dynamics are limited, with the contract being awarded on a sole-source basis. 3. Risk indicators include potential overpricing due to lack of competition and the long duration of the contract. 4. Performance context is vague, with 'miscellaneous weapons' lacking specific detail on deliverables. 5. Sector positioning is within the defense industrial base, specifically supporting aircraft equipment and missile systems. 6. The contract's duration of over 4 years suggests a significant, ongoing need for these services or products.
Value Assessment
Rating: questionable
The total award amount of $105,394,000 over approximately 4 years for 'miscellaneous weapons' lacks sufficient detail for a robust value-for-money assessment. Without clear performance metrics or a competitive bidding process, it is difficult to benchmark this against similar contracts or market rates. The absence of a competitive environment suggests a potential for inflated pricing, making it challenging to determine if the government received optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. This significantly limits the number of potential bidders and the opportunity for price discovery through market forces. While sole-source awards can be justified under specific circumstances, such as unique capabilities or urgent needs, the provided data does not offer insight into the justification for this approach.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This lack of competition means the government may not be getting the best possible price for the goods or services procured.
Public Impact
The primary beneficiary is Lockheed Martin, a major defense contractor, which receives substantial funding. The services delivered are broadly categorized as 'miscellaneous weapons' and 'other aircraft equipment,' supporting national defense capabilities. The geographic impact is primarily centered in Florida, where Lockheed Martin's facility is located, potentially supporting local employment. Workforce implications include the potential for job creation and retention within Lockheed Martin's operations related to this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Vague description of 'miscellaneous weapons' hinders performance assessment.
- Long contract duration without clear performance benchmarks raises concerns about sustained value.
- Sole-source award limits transparency and potential for better pricing.
Positive Signals
- Contract supports critical defense needs for the Air Force.
- Awardee is a well-established defense contractor with significant experience.
- Contract duration suggests a stable, long-term requirement.
Sector Analysis
This contract falls within the defense sector, specifically supporting the manufacturing and supply of weapons systems and aircraft equipment. The defense industry is characterized by large, complex contracts often awarded to major prime contractors like Lockheed Martin. Spending in this sector is driven by national security priorities and technological advancements. Comparable spending benchmarks are difficult to establish without more specific details on the 'miscellaneous weapons' procured.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it provide information on subcontracting plans. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities are created. Further analysis would be needed to determine if small businesses are involved further down the supply chain.
Oversight & Accountability
Oversight mechanisms for this contract are not detailed in the provided data. As a Department of Defense contract, it would typically fall under the purview of the Department of Defense's Inspector General for audits and investigations. Transparency is limited due to the sole-source nature and the lack of specific performance metrics. Accountability would rely on contractual terms and reporting requirements not specified here.
Related Government Programs
- Air Force Weapon Systems Procurement
- Defense Logistics Agency (DLA) Support Contracts
- Missile and Space Systems Manufacturing
- Aircraft Component Manufacturing
- General Services Administration (GSA) Schedules (if applicable for components)
Risk Flags
- Sole-source award lacks competitive justification.
- Vague contract description hinders performance assessment.
- Potential for cost overruns due to lack of competition.
- Long contract duration without clear performance metrics.
Tags
defense, department-of-defense, department-of-the-air-force, lockheed-martin, sole-source, firm-fixed-price, miscellaneous-weapons, aircraft-equipment, florida, large-contract, weapons-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $158.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200307!000031!5700!GM11 !AAC/YHK !F0863503C0021 !A!N! !N! !20030416!20060515!070542696!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!5600 SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000004899872!Y!N!000063799243!1095!MISCELLANEOUS WEAPONS !A1C!OTHER AIRCRAFT EQUIPMENT !3000!NOT DISCERNABLE OR CLASSIFIED !336414!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $158.7 million.
What is the period of performance?
Start: 2003-04-16. End: 2007-05-31.
What specific types of 'miscellaneous weapons' and 'other aircraft equipment' are covered under this contract?
The provided data categorizes the contract under 'MISCELLANEOUS WEAPONS' and 'OTHER AIRCRAFT EQUIPMENT' with Product Service Codes (PSC) of 1095 and A1C, respectively. However, the specific nature of these items is not detailed. This lack of specificity makes it challenging to understand the exact scope of work, assess the technical requirements, or compare pricing against known market items. Further investigation into contract line item numbers (CLINs) or attached statements of work would be necessary to identify the precise goods or services being procured under this significant award.
What was the justification for awarding this contract on a sole-source basis to Lockheed Martin?
The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. While the specific justification is not provided, common reasons for sole-source procurements in the defense sector include the existence of unique capabilities held by only one contractor, urgent and compelling needs where competition is impractical, or follow-on work to a previously competed contract where only the original contractor can provide the necessary integration or sustainment. Without access to the Justification and Approval (J&A) document typically associated with sole-source awards, the precise rationale remains unknown, making it difficult to assess if competition was appropriately bypassed.
How does the awarded amount of $105,394,000 compare to similar contracts for 'miscellaneous weapons' or aircraft equipment?
Benchmarking this $105.4 million contract against similar procurements is difficult due to the broad and non-specific nature of 'miscellaneous weapons' and 'other aircraft equipment.' Without knowing the exact items, quantities, and technical specifications, direct comparisons are unreliable. Furthermore, the sole-source nature of this award means it was not subject to competitive pricing pressures, potentially inflating the cost relative to what might have been achieved through an open bidding process. A thorough comparison would require access to detailed contract data for comparable items awarded competitively.
What are the key performance indicators (KPIs) or deliverables associated with this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or detailed deliverables for this contract. The description 'MISCELLANEOUS WEAPONS' and 'OTHER AIRCRAFT EQUIPMENT' is too general to infer specific performance expectations. Effective contract oversight relies on clearly defined metrics for quality, timeliness, and cost control. The absence of such information in the summary data makes it challenging to assess the contractor's performance or the overall effectiveness of the procurement in meeting the government's needs.
What is Lockheed Martin's track record with similar Department of Defense contracts?
Lockheed Martin is a major defense contractor with an extensive history of performing large, complex contracts for the Department of Defense across various platforms, including aircraft, missiles, and space systems. While this specific contract's details are limited, Lockheed Martin's overall track record involves significant program execution, often involving advanced technologies and substantial budgets. However, like any large contractor, they have also faced scrutiny regarding cost overruns, schedule delays, and performance issues on specific programs. A comprehensive assessment would require examining their performance history on contracts with similar scope and complexity.
What is the historical spending trend for 'miscellaneous weapons' and 'other aircraft equipment' by the Department of the Air Force?
The provided data represents a single contract award from 2003. To understand historical spending trends for 'miscellaneous weapons' and 'other aircraft equipment' by the Department of the Air Force, a broader dataset encompassing multiple years and contracts would be necessary. This would allow for analysis of spending fluctuations, identification of major suppliers, and recognition of shifts in procurement priorities within these categories. Without this broader context, it is impossible to discern any meaningful historical spending patterns from this isolated data point.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: WEAPONS
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: 5600 SAND LAKE ROAD, ORLANDO, FL, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2003-04-16
Current End Date: 2007-05-31
Potential End Date: 2007-05-31 00:00:00
Last Modified: 2009-07-18
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