DoD Awards $168M Contract to Lockheed Martin for Rocket Launcher Repair, Limited Competition
Contract Overview
Contract Amount: $168,318,777 ($168.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2004-05-31
End Date: 2010-09-30
Contract Duration: 2,313 days
Daily Burn Rate: $72.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200412!044494!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002404C5453 !A!N! !N! !P00002!20040817!20080930!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000008048652!Y!N!000000000000!1055!LAUNCHERS, ROCKET AND PYROTECHNIC !A5 !WEAPONS !180 !DDG 51 !811213!E! !3! ! !C! ! !99990909!B!F!N!A! !C!Y!R!1!001!N!1B!A!Y!Z!A!ZZ!N!C!N! ! ! !A!A!A!A!00 !A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: MIDDLE RIVER, BALTIMORE County, MARYLAND, 21220, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $168.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200412!044494!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002404C5453 !A!N! !N! !P00002!20040817!20080930!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!04000!510!24!BALTIMORE !BALT… Key points: 1. The contract is for repair and maintenance of rocket and pyrotechnic launchers. 2. Lockheed Martin Corporation is the sole awardee, raising competition concerns. 3. The contract duration is over 5 years, indicating a significant long-term commitment. 4. The sector is Defense, specifically focusing on weapons systems maintenance.
Value Assessment
Rating: fair
The contract value of $168.3 million for repair and maintenance appears high given the limited competition. Benchmarking against similar contracts for weapon system sustainment would be necessary to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection. This approach may lead to higher prices due to the lack of competitive pressure and potentially less effective price discovery.
Taxpayer Impact: Taxpayer funds are committed to a sole-source award, potentially at a premium due to the absence of competition.
Public Impact
Ensures readiness of critical naval weapon systems. Supports a major defense contractor and its supply chain. Potential for increased costs to taxpayers due to limited competition. Impacts the operational capability of naval assets reliant on these launchers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for cost overruns
- Long contract duration
Positive Signals
- Ensures critical system maintenance
- Supports established defense industrial base
Sector Analysis
This contract falls within the Defense sector, specifically for the maintenance of weapon systems. Spending in this area is critical for national security but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The contract was awarded by the Naval Sea Systems Command. Oversight would focus on performance, cost control, and adherence to contract terms, especially given the limited competition.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost creep
- Sole-source award
- Long contract duration without clear performance metrics
Tags
communication-equipment-repair-and-maint, department-of-defense, md, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $168.3 million to LOCKHEED MARTIN CORPORATION. 200412!044494!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002404C5453 !A!N! !N! !P00002!20040817!20080930!848028494!834951691!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000008048652!Y!N!000000000000!1055!LAUNCHERS, ROCKET AND PYROTECHNIC !A5 !WEAPONS !180 !DDG 51 !811213!E! !3! ! !C! ! !999
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 $168.3 million.
What is the period of performance?
Start: 2004-05-31. End: 2010-09-30.
What is the justification for not competing this contract, and what steps were taken to ensure fair pricing?
The data indicates the contract was 'NOT COMPETED'. A detailed justification for this approach, such as a sole-source requirement or urgency, would be needed. Without competition, the government relies on negotiation and market research to ensure fair and reasonable pricing, which can be challenging.
How does the per-unit cost of repair for these launchers compare to industry benchmarks or previous contracts?
The provided data does not include per-unit cost breakdowns or specific repair details. A thorough analysis would require comparing the contract's pricing structure and rates against historical data for similar services and industry standards to identify potential inefficiencies or overpricing.
What is the long-term strategy for maintaining these weapon systems, and does this contract align with it?
This contract covers a period of over five years. Understanding the broader sustainment strategy for these rocket launchers is crucial. This award should align with long-term modernization plans and potentially include provisions for future competition or performance-based logistics to ensure sustained readiness and cost control.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 199 BORTON LANDING ROAD, MOORESTOWN, NJ, 08057
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: 2004-05-31
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2015-07-21
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