DoD Awards $836M Contract for C-130 Hercules Structural Component Repair to Lockheed Martin
Contract Overview
Contract Amount: $24,535,210 ($24.5M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2003-06-20
End Date: 2007-09-30
Contract Duration: 1,563 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200309!000092!5700!GJ30 !WARNER ROBINS ALC/LBK !F0960301D0207 !A!N! !N!0048 !20030620!20041231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000017024329!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !336411!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!004!B! !Z!N!A! ! !N!C!N! ! ! !C!Z!A!A!000!A!A!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $24.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200309!000092!5700!GJ30 !WARNER ROBINS ALC/LBK !F0960301D0207 !A!N! !N!0048 !20030620!20041231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!30850!045!45!GREENVILLE !GREEN… Key points: 1. Significant contract value of $836 million awarded to a single large business. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risk associated with sole reliance on one contractor for critical aircraft structural repairs. 4. Spending falls within the Aircraft Manufacturing sector, with a substantial contract size.
Value Assessment
Rating: good
The contract value of $836 million for aircraft structural component repair appears substantial. Benchmarking against similar contracts for specialized aerospace maintenance would be necessary for a precise pricing assessment, but the firm fixed-price structure suggests a defined cost expectation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Ensures continued airworthiness and operational readiness of the C-130 Hercules fleet. Supports critical maintenance and repair services for a widely used military transport aircraft. Impacts the aerospace and defense industrial base, particularly in Georgia. Provides long-term employment opportunities within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration (over 4 years) may limit future competitive opportunities.
- High contract value could indicate a critical dependency on the incumbent contractor.
- Potential for cost overruns if unforeseen structural issues arise beyond the scope of the fixed-price agreement.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type provides cost certainty.
- Contractor is a well-established entity in the aerospace sector.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically for the maintenance and repair of structural components for the C-130 Hercules. Spending benchmarks in this specialized area are typically high due to the complexity and safety-critical nature of aerospace MRO.
Small Business Impact
The contract was awarded to Lockheed Martin Integrated Systems, LLC, a large business. There is no indication of small business participation or subcontracting requirements in the provided data, suggesting limited direct benefit to small businesses from this specific award.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial audits to ensure compliance and value for money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value concentrated with one large business.
- Long contract duration (over 4 years).
- Potential for sole-source dependency if future needs arise.
- Critical nature of aircraft structural components.
Tags
aircraft-manufacturing, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200309!000092!5700!GJ30 !WARNER ROBINS ALC/LBK !F0960301D0207 !A!N! !N!0048 !20030620!20041231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000017024329!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !336411!E! !5!B!M! !A! !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 $24.5 million.
What is the period of performance?
Start: 2003-06-20. End: 2007-09-30.
What is the historical performance of Lockheed Martin in maintaining C-130 structural components, and how does it compare to industry standards?
Assessing Lockheed Martin's historical performance requires access to past performance reviews, delivery records, and quality metrics related to C-130 structural repairs. Comparing this to industry standards would involve analyzing data from similar maintenance providers and independent aerospace quality assessments. Without specific performance data, it's difficult to definitively state their standing relative to benchmarks, though their long-standing presence suggests a degree of established capability.
What are the specific risks associated with relying on a single contractor for the repair of critical aircraft structural components over a multi-year period?
Relying on a single contractor for critical structural repairs over an extended period carries risks such as potential price escalation beyond initial estimates if contract modifications are needed, reduced incentive for innovation or efficiency improvements by the contractor, and a lack of flexibility if the government needs to pivot to alternative solutions or suppliers. It also creates a single point of failure for essential maintenance, potentially impacting fleet readiness if the contractor faces operational or financial difficulties.
How effectively does the firm fixed-price contract structure mitigate potential cost overruns for the government, given the nature of structural repairs?
A firm fixed-price (FFP) contract is designed to shift cost risk to the contractor, providing the government with cost certainty. However, for complex structural repairs where unforeseen issues can arise, there's a risk the contractor may seek change orders or modifications if the scope significantly deviates from the original estimate. While FFP is generally effective, the government must ensure the initial scope is well-defined and robust oversight is in place to manage potential scope creep or claims for equitable adjustments.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2003-06-20
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2014-07-16
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