DoD Awards $182.6M Contract to Lockheed Martin for Navigation Systems, Sole-Sourced

Contract Overview

Contract Amount: $182,611,739 ($182.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-06-16

End Date: 2028-02-28

Contract Duration: 2,448 days

Daily Burn Rate: $74.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UK INS PRODUCTION (UK)

Place of Performance

Location: HEATH, LICKING County, OHIO, 43056

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $182.6 million to LOCKHEED MARTIN CORPORATION for work described as: UK INS PRODUCTION (UK) Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature raises questions about price discovery. 3. Long contract duration (2021-2028) warrants close monitoring. 4. Focus on navigation systems is critical for naval operations.

Value Assessment

Rating: fair

The award value of $182.6M over approximately 6.8 years suggests a substantial investment. Without comparable contracts or detailed cost breakdowns, assessing the pricing against similar systems is difficult. The firm fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits opportunities for competitive bidding and potentially impacts price negotiation, as there is no direct comparison from other vendors. The rationale for sole-sourcing is not provided.

Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pricing, potentially leading to higher costs than if multiple vendors had bid.

Public Impact

Ensures continued availability of critical navigation technology for the Navy. Supports a major defense contractor and its supply chain. Potential for cost overruns due to lack of competition. Long-term commitment may limit flexibility for future technological advancements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national defense, but often involves high-value, specialized systems where competition can be limited.

Small Business Impact

The data indicates this is a large prime contract awarded to Lockheed Martin Corporation. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure fair pricing and effective delivery. The Department of Defense's contracting process should include justification for non-competitive awards and mechanisms for accountability.

Related Government Programs

Risk Flags

Tags

search-detection-navigation-guidance-aer, department-of-defense, oh, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $182.6 million to LOCKHEED MARTIN CORPORATION. UK INS PRODUCTION (UK)

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 $182.6 million.

What is the period of performance?

Start: 2021-06-16. End: 2028-02-28.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can meet the requirement. To ensure fair and reasonable pricing, the agency would likely conduct a price analysis based on historical data, cost proposals, or market research. However, without competition, the potential for inflated prices remains a concern.

How does the $182.6M contract value compare to similar navigation system procurements, and what is the projected cost-effectiveness over its duration?

Benchmarking this $182.6M contract against similar navigation system procurements is challenging without access to detailed cost data and specific system functionalities. The firm fixed-price nature provides cost certainty for the government, but the overall cost-effectiveness hinges on the initial negotiation and the actual performance and longevity of the systems delivered.

What are the key performance metrics and oversight mechanisms in place to ensure the successful delivery and effectiveness of these navigation systems?

Key performance metrics would likely include system reliability, accuracy, integration with existing platforms, and adherence to delivery schedules. Oversight mechanisms would involve regular progress reviews, quality assurance inspections, and potentially independent verification and validation processes to ensure the systems meet the Department of the Navy's operational requirements and are effective.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003020Q0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 CHARLES LINDBERGH BLVD, UNIONDALE, NY, 11553

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $232,991,990

Exercised Options: $182,611,739

Current Obligation: $182,611,739

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $160,177,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2021-06-16

Current End Date: 2028-02-28

Potential End Date: 2028-02-28 00:00:00

Last Modified: 2026-02-18

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