DoD awards $18.8M for C-5 Galaxy engineering services to Lockheed Martin, highlighting potential cost concerns

Contract Overview

Contract Amount: $18,849,815 ($18.8M)

Contractor: Lockheed Martin Integrated Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2002-06-03

End Date: 2007-09-15

Contract Duration: 1,930 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIXED PRICE

Sector: Defense

Official Description: 200209!000104!5700!GJ15 !WR-ALC/LAK !F0960301D0207 !A!N! !N!0016 !20020603!20030529!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DR !BETHESDA !MD!20817!49756!067!13!MARIETTA !COBB !GEORGIA !+000003060232!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A1A!AIRFRAMES AND SPARES !3ACA!C-5 GALAXY !336411!E! !5!B!M! !C! !99990909!B! ! !A! !A!N!J!2!010!B! !Z!Y!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200209!000104!5700!GJ15 !WR-ALC/LAK !F0960301D0207 !A!N! !N!0016 !20020603!20030529!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DR !BETHESDA !MD!20817!49756!067!13!MARIETTA !COBB … Key points: 1. Contract awarded for engineering technical services related to the C-5 Galaxy aircraft. 2. Lockheed Martin Integrated Systems, LLC is the primary contractor. 3. The contract was awarded under full and open competition. 4. Spending is concentrated in Georgia, with potential implications for the aerospace sector.

Value Assessment

Rating: questionable

The contract value of $18.8M for engineering technical services appears high relative to the duration and scope. Benchmarking against similar aircraft support contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing details and discovery mechanisms are not fully transparent from this data alone.

Taxpayer Impact: Taxpayer funds are being utilized for critical aircraft sustainment, with the value for money being a key consideration.

Public Impact

Supports the operational readiness of the C-5 Galaxy, a vital strategic airlift aircraft. Ensures continued technical expertise for a key defense asset. Potential for job creation and economic impact in Georgia. Highlights the ongoing investment in maintaining aging military fleets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing support. Spending benchmarks for similar engineering services on large military aircraft can vary significantly based on complexity and duration.

Small Business Impact

The data does not indicate any specific subcontracting efforts with small businesses for this contract. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would typically involve the Department of the Air Force monitoring contract performance, adherence to technical specifications, and financial expenditures to ensure accountability and value.

Related Government Programs

Risk Flags

Tags

aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200209!000104!5700!GJ15 !WR-ALC/LAK !F0960301D0207 !A!N! !N!0016 !20020603!20030529!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DR !BETHESDA !MD!20817!49756!067!13!MARIETTA !COBB !GEORGIA !+000003060232!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A1A!AIRFRAMES AND SPARES !3ACA!C-5 GALAXY !336411!E! !5!B!M! !C! !99990909!B

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2002-06-03. End: 2007-09-15.

What is the specific breakdown of services provided under this contract and how does it align with the $18.8M cost?

The contract specifies 'ENGINEERING TECHNICAL SERVICES' for the C-5 Galaxy. A detailed breakdown of labor hours, specific engineering tasks (e.g., design modifications, troubleshooting, maintenance support, documentation), and associated rates would be necessary to fully justify the $18.8M cost. Without this granular detail, it's difficult to assess if the pricing is competitive or reflects the actual effort required.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract to ensure effective service delivery?

The provided data does not explicitly list performance metrics or KPIs. Effective oversight would require the Department of the Air Force to establish and monitor such indicators to ensure Lockheed Martin meets technical requirements, delivery schedules, and quality standards. The absence of readily available KPIs raises questions about the robustness of performance management for this significant expenditure.

How does the cost of these engineering services compare to historical spending on similar support for the C-5 Galaxy or comparable aircraft?

Benchmarking against historical data for C-5 Galaxy engineering services or similar large military aircraft programs is crucial. Without access to comparable contract data, it's challenging to determine if the $18.8M represents a fair and reasonable price. Factors like inflation, technological advancements, and specific program needs influence costs, necessitating a detailed comparative analysis.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 31088

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F0960301D0207

IDV Type: IDC

Timeline

Start Date: 2002-06-03

Current End Date: 2007-09-15

Potential End Date: 2007-09-15 00:00:00

Last Modified: 2022-04-08

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