DoD awards $836M contract for aircraft propellers and components to Lockheed Martin
Contract Overview
Contract Amount: $61,204,911 ($61.2M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-05-07
End Date: 2008-03-31
Contract Duration: 1,424 days
Daily Burn Rate: $43.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200408!000086!5700!GJ30 !WARNER ROBINS ALC/LBK !FA850404C0009 !A!N! !N! ! !20040507!20051231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000016580446!Y!N!000033160892!1610!AIRCRAFT PROPELLERS AND COMPONENTS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336413!E! !1! ! ! ! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!4A!A!Y!A!B!UK!N!C!N! ! ! !Z!Z!A!A!00 !A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29605
Plain-Language Summary
Department of Defense obligated $61.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200408!000086!5700!GJ30 !WARNER ROBINS ALC/LBK !FA850404C0009 !A!N! !N! ! !20040507!20051231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!30850!045!45!GREENVILLE !GREE… Key points: 1. The contract value is substantial at $836 million, indicating a significant need for these aircraft parts. 2. Lockheed Martin, a major defense contractor, secured this award, highlighting its dominance in the aerospace sector. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about the procurement process and potential lack of competitive pricing. 4. This spending falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category, a critical segment of the defense industrial base.
Value Assessment
Rating: questionable
The contract value of $836 million for aircraft propellers and components appears high. Without specific benchmarks for similar, competitively procured contracts, it's difficult to definitively assess if this price is optimal. The lack of competition further complicates a direct value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source justification. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract, potentially increasing the overall defense budget expenditure.
Public Impact
Taxpayers are funding a significant contract for essential aircraft components, impacting the defense budget. The award to Lockheed Martin reinforces the presence of large defense contractors in the aerospace supply chain. The limited competition raises questions about the efficiency and cost-effectiveness of this procurement for the government. This contract supports jobs and economic activity within the aerospace manufacturing sector, particularly in South Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to limited bidding
- Long contract duration (over 4 years)
Positive Signals
- Award to a major, established defense contractor
- Addresses a critical need for aircraft components
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is a vital component of the defense industrial base. Spending in this area is often driven by specific military platform requirements and can be subject to limited competition due to specialized manufacturing needs.
Small Business Impact
The awardee is Lockheed Martin Integrated Systems, LLC, a large prime contractor. There is no immediate indication of subcontracting opportunities for small businesses within the provided data, suggesting this award primarily benefits large corporations.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would typically involve monitoring contract performance, quality, and delivery schedules to ensure compliance with the firm fixed-price terms.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Lack of transparency in procurement justification
- Potential for cost overruns
- Long contract duration
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, sc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.2 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200408!000086!5700!GJ30 !WARNER ROBINS ALC/LBK !FA850404C0009 !A!N! !N! ! !20040507!20051231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000016580446!Y!N!000033160892!1610!AIRCRAFT PROPELLERS AND COMPONENTS !A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336413!E! !1! ! ! ! ! !999
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $61.2 million.
What is the period of performance?
Start: 2004-05-07. End: 2008-03-31.
What was the specific justification for awarding this contract on a limited competition basis, and were alternative procurement strategies considered?
The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review would be needed to understand the specific justification, such as a critical need, lack of qualified sources, or national security concerns. Without this justification, it's impossible to determine if alternative strategies were explored or if this was the most cost-effective approach for the government.
How does the per-unit cost of these aircraft propellers and components compare to industry benchmarks or previous contracts for similar items?
The provided data does not include per-unit cost information or specific details about the components, making a direct benchmark comparison impossible. The total contract value is $836 million over approximately 4 years. To assess value, one would need detailed specifications of the parts and comparable pricing data from other government or commercial contracts.
What are the potential risks associated with a sole-source or limited-competition contract of this magnitude for critical aircraft components?
The primary risk is the potential for inflated pricing due to the absence of competitive pressure. Other risks include reduced innovation, potential for vendor lock-in, and less incentive for the contractor to improve efficiency or quality beyond contract minimums. Ensuring robust oversight is crucial to mitigate these risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DRIVE, BETHESDA, NJ
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: 2004-05-07
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2011-03-23
More Contracts from Lockheed Martin Integrated Systems, LLC
- 200407!000098!5700!LA01 !11 Cons/Lgcw !FA701204C0003 !A!N! !N! ! !20031121!20130630!836196972!805258373!834951691!n!lockheed Martin Integrated SYS!6801 Rockledge Drive !bethesda !nj!20817!50000!001!11!washington !district of Columbia !D.C. !+000010350876!n!n!000530185344!d399!other Adp&telecommunication Services !S1 !services !000 !* !541690!A!B!3! ! ! ! ! !99990909!b!b!y!b! !a!n!l!2!007!b! !C!Y!F! ! !N!C!N! ! ! !b!z!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $679.5M (Department of Defense)
- 200611!007847!2100!w15p7t!usa Communications-Electronics !daab0703db009 !A!N! !Y!0243 ! !20060831!20110129!068514251!805258373!834951691!n!lockheed Martin Integrated SYS!1800 Route 34 !wall !nj!07719!76460!025!34!wall (township OF) !monmouth !NEW Jersey!+000077463827!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !N!C!N! ! ! !c!z!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $448.3M (Department of Defense)
- ISS Cargo Mission Contract (CMC) — $406.2M (National Aeronautics and Space Administration)
- THE Moses II Effort IS a Five-Year Sole-Source Follow-On Contract to Maintain the Health and Safety of the HST Observatory Through the Next Phase of ITS Science Mission. the Scope of This Follow-On Effort Includes Conducting ALL Elements of HST Operations Other Than Science Operations, and to Perform Systems Engineering Tasks Required to Properly Maintain HST Flight and Ground Systems.mission Operations Responsibilities Include Safe and Efficient Control and Utilization of the HST Observatory, Maintenance and Operation of Hst-Unique Facilities and Equipment, AS Well AS Creation, Maintenance, and Utilization of HST Operations Processes and Procedures. Critical Systems Engineering Responsibilities Consist of Optimizing Mission System Capabilities to Maximize HST Operations Effectiveness and Science Productivity. Essential Management Requirements Include Providing a Technical Staff Possessing In-Depth Knowledge of HST S Varied, Complex, and Unique Flight and Ground Systems, Ensuring Successful Accomplishment of the Diverse Tasks Necessary to Effectively Conduct HST Mission Operations and Systems Engineering AS Well AS to Manage and Report Contract Element Cost and Schedule Performance — $360.2M (National Aeronautics and Space Administration)
- Federal Contract — $304.3M (Department of Defense)
View all Lockheed Martin Integrated Systems, LLC federal contracts →
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)