DoD Awards $24.1M to Lockheed Martin for Lightweight PFE & NOR PEST Requirements
Contract Overview
Contract Amount: $24,189,813 ($24.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2031-04-30
Contract Duration: 2,038 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS MODIFICATION IS TO AWARD LIGHTWEIGHT PFE AND NOR PEST REQUIREMENT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $24.2 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS MODIFICATION IS TO AWARD LIGHTWEIGHT PFE AND NOR PEST REQUIREMENT. Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on aircraft manufacturing (NAICS 336411). 3. Long contract duration (2031 end date) suggests significant program. 4. Firm Fixed Price contract type aims to control costs.
Value Assessment
Rating: questionable
The contract value of $24.1M is for a modification, indicating it's part of a larger existing contract. Without knowing the total contract value and scope, assessing its value for money is difficult. The firm fixed price type is positive for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this modification may result in a higher price than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Potential for increased defense spending on specialized aircraft components. Impacts Lockheed Martin Corporation's revenue and backlog. Long-term commitment may indicate critical national security needs. Limited transparency due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of detailed justification for sole-sourcing.
- Long contract duration could lead to cost overruns if not managed well.
Positive Signals
- Firm Fixed Price contract type.
- Awarded to a known, established defense contractor.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key area for the Department of Defense. Spending in this sector is often high due to the complex and critical nature of defense aviation.
Small Business Impact
The awardee is Lockheed Martin Corporation, a major defense contractor. There is no indication that small businesses were involved in this specific modification, which is common for large sole-source contracts.
Oversight & Accountability
As a sole-source modification, oversight is crucial to ensure the pricing is fair and the work performed meets requirements. The Department of the Navy is responsible for this oversight.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Long contract duration
- Limited public information on specific requirements
Tags
aircraft-manufacturing, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS MODIFICATION IS TO AWARD LIGHTWEIGHT PFE AND NOR PEST REQUIREMENT.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $24.2 million.
What is the period of performance?
Start: 2025-09-30. End: 2031-04-30.
What is the specific justification for awarding this modification sole-source, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or existing platform integration. The Department of the Navy should have documentation detailing this. Ensuring fair pricing would involve detailed cost analysis, negotiation, and potentially independent government cost estimates to validate Lockheed Martin's proposed price.
What are the specific 'Lightweight PFE' and 'NOR PEST' requirements, and how do they contribute to the overall defense mission?
Without further details, 'Lightweight PFE' likely refers to components or systems related to aircraft performance enhancement or power/fuel efficiency, emphasizing reduced weight. 'NOR PEST' could relate to non-operational or maintenance-related requirements, possibly for environmental protection or specific operational support. Their contribution is likely tied to improving aircraft capabilities, reducing operational costs, or meeting environmental standards.
Given the long contract duration, what mechanisms are in place to manage potential cost increases or scope creep over the years?
Firm Fixed Price contracts inherently aim to cap costs. However, mechanisms like contract clauses for equitable adjustments due to unforeseen circumstances, regular performance reviews, and strict change order management are vital. The government must actively monitor performance and costs to prevent scope creep and ensure the contractor adheres to the original agreement.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001920R0073
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD BLDG 10, FORT WORTH, TX, 76108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,189,813
Exercised Options: $24,189,813
Current Obligation: $24,189,813
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001923D0010
IDV Type: IDC
Timeline
Start Date: 2025-09-30
Current End Date: 2031-04-30
Potential End Date: 2031-04-30 00:00:00
Last Modified: 2025-09-30
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