DoD Spends $53M on Lockheed Martin's 6 LFICS/1 RFIC Refurbishment Contract
Contract Overview
Contract Amount: $53,006,843 ($53.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2009-02-19
End Date: 2015-09-30
Contract Duration: 2,414 days
Daily Burn Rate: $22.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: REFURBISH 6 LFICS/1 RFIC
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $53.0 million to LOCKHEED MARTIN CORP for work described as: REFURBISH 6 LFICS/1 RFIC Key points: 1. Contract awarded to a single, large incumbent provider. 2. Significant contract duration of over 2000 days. 3. Cost-plus contract type may incentivize higher spending. 4. Engineering services sector sees substantial government investment.
Value Assessment
Rating: questionable
The contract's cost-plus fixed fee structure, coupled with a long duration, raises concerns about potential cost overruns and the absence of clear performance incentives. Benchmarking against similar refurbishment contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may not have yielded the most competitive pricing for the government.
Taxpayer Impact: The limited competition and cost-plus structure suggest taxpayers may not have received the best possible value, with potential for inflated costs.
Public Impact
Citizens may question the value for money given the contract's structure and duration. The reliance on a single contractor for critical refurbishment could pose supply chain risks. Transparency in the cost escalation and final expenditure is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type
- Long contract duration
- Limited competition
- Single incumbent provider
Positive Signals
- Awarded to a known entity
- Specific equipment refurbishment
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for maintaining and upgrading complex defense systems. Spending benchmarks in this area are highly variable, depending on the specific technology and scope of work.
Small Business Impact
The contract was awarded to Lockheed Martin Corp, a large prime contractor, and there is no indication of small business participation in the provided data. This suggests a lack of opportunity for small businesses on this specific procurement.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants further investigation into the justification for excluding other potential bidders. Oversight should focus on cost control and performance metrics throughout the contract's lifecycle.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to contract type
- Lack of robust competition
- Long contract duration may indicate complexity or inefficiency
- Reliance on a single, large incumbent
Tags
engineering-services, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.0 million to LOCKHEED MARTIN CORP. REFURBISH 6 LFICS/1 RFIC
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $53.0 million.
What is the period of performance?
Start: 2009-02-19. End: 2015-09-30.
What specific technical advancements or cost savings were realized through this refurbishment contract compared to alternative solutions?
The provided data does not detail the specific technical advancements or cost savings achieved. The cost-plus fixed fee structure and limited competition raise questions about whether alternative solutions were adequately explored or if the chosen path truly optimized value for the Department of Defense and taxpayers.
What were the primary reasons for excluding other sources during the competition phase for this contract?
The data indicates 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification was provided for not considering all potential bidders. Typically, such exclusions are based on proprietary technology, unique capabilities, or urgent needs that only a specific contractor can meet, though the validity of these justifications requires scrutiny.
How effectively did the cost-plus fixed fee structure incentivize Lockheed Martin to control costs and deliver the refurbishment efficiently?
Cost-plus fixed fee contracts can sometimes disincentivize cost control as the contractor is reimbursed for costs plus a fixed fee. Without detailed performance reports and cost breakdowns, it's difficult to assess the efficiency. The long duration and lack of explicit performance incentives in the summary suggest potential risks for cost overruns.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $53,106,843
Exercised Options: $53,106,843
Current Obligation: $53,006,843
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-02-19
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2017-10-26
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)