DoD's $31.4M contract for aircraft structural component repair awarded to Lockheed Martin

Contract Overview

Contract Amount: $31,417,029 ($31.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2005-08-09

End Date: 2006-08-23

Contract Duration: 379 days

Daily Burn Rate: $82.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200511!001076!5700!FA8108!OC-ALC/LAD CFT !F3460197D0424 !A!N! !N!0181 ! !20050809!20060823!020066176!037900057!834951691!N!LOCKHEED MARTIN LOGISTICS MANA!555 LINCOLN DRIVE WEST !MARLTON !NJ!08053!31068!029!13!FORT STEWART !BRYAN !GEORGIA !+000011168459!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !A! !20200930!B! ! !A! !A!U!Y!2!004!B! !C!Y!Z! ! !N!C!N! ! ! !C!A!A!A!000!A!C!N! ! ! !Y!2100! !0001! !

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31315

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to LOCKHEED MARTIN CORPORATION for work described as: 200511!001076!5700!FA8108!OC-ALC/LAD CFT !F3460197D0424 !A!N! !N!0181 ! !20050809!20060823!020066176!037900057!834951691!N!LOCKHEED MARTIN LOGISTICS MANA!555 LINCOLN DRIVE WEST !MARLTON !NJ!08053!31068!029!13!FORT STEWART !BRYA… Key points: 1. Contract awarded to a single, large defense contractor, indicating potential for limited competition. 2. The contract's value is substantial, requiring careful oversight to ensure cost-effectiveness. 3. Performance period of approximately one year suggests a focus on immediate or short-term needs. 4. The specific nature of aircraft structural component repair points to a critical defense maintenance requirement. 5. Geographic location of the awardee's facility in New Jersey may have implications for regional economic impact. 6. The contract type (Time and Materials) can sometimes lead to cost overruns if not managed tightly.

Value Assessment

Rating: fair

The contract value of $31.4 million for aircraft structural component repair is significant. Benchmarking this against similar contracts for specialized maintenance is crucial. Without direct comparisons, it's difficult to definitively assess value for money. The Time and Materials (T&M) contract type, while flexible, carries inherent risks of cost escalation if not meticulously monitored and controlled by the government. The awardee, Lockheed Martin, is a major defense contractor with extensive experience, which could imply efficiency but also potentially higher pricing due to overhead and market position.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders were likely solicited. The data indicates four bids were received. A competitive environment with multiple bidders generally promotes price discovery and can lead to more favorable pricing for the government. However, the specific nature of specialized aircraft maintenance might limit the pool of qualified bidders, even within a full and open process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, potentially driving down costs and ensuring the government receives competitive pricing for essential services.

Public Impact

The primary beneficiaries are the Department of Defense and its operational readiness, ensuring aircraft structural integrity. Services delivered include maintenance and repair of aircraft structural components, critical for flight safety and mission capability. The contract's geographic impact is primarily tied to the awardee's facility in Marlton, New Jersey, potentially supporting local jobs and the regional economy. Workforce implications include the employment of skilled technicians and engineers specializing in aircraft structural repair at Lockheed Martin's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to unpredictable costs if not closely managed.
Reliance on a single large contractor may limit future competition or innovation.
The specific nature of aircraft structural repair requires specialized expertise, potentially limiting the pool of qualified bidders.
The contract duration of just over one year might indicate a need for ongoing, potentially separate, future procurements.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contractor, Lockheed Martin, is a well-established entity with significant experience in defense contracting.
The contract addresses a critical need for aircraft structural maintenance, essential for military operations.
The contract value is clearly defined, providing a budget ceiling for the services.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on maintenance, repair, and overhaul (MRO) services for aircraft. The market for defense MRO is substantial, driven by the need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft component repairs across different military branches or defense contractors. The size of this contract suggests a significant scope of work for a specific aircraft type or component category.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). As a large-value contract awarded to a major defense contractor, it is unlikely to involve significant subcontracting opportunities for small businesses directly related to the core repair work, unless specified within the contract's statement of work. The focus is on a prime contractor with established capabilities, rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures would include performance reviews, adherence to the contract terms, and quality control of the repair work. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Maintenance and Repair Services
Aerospace Component Manufacturing
Defense Logistics Support
Air Force Readiness Programs
Aircraft Structural Repair Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition may result in less favorable pricing.
Reliance on a single large contractor.
Need for robust government oversight to manage scope and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to LOCKHEED MARTIN CORPORATION. 200511!001076!5700!FA8108!OC-ALC/LAD CFT !F3460197D0424 !A!N! !N!0181 ! !20050809!20060823!020066176!037900057!834951691!N!LOCKHEED MARTIN LOGISTICS MANA!555 LINCOLN DRIVE WEST !MARLTON !NJ!08053!31068!029!13!FORT STEWART !BRYAN !GEORGIA !+000011168459!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !A! !202

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 Air Force).

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2005-08-09. End: 2006-08-23.

What is Lockheed Martin's track record with similar aircraft structural repair contracts for the Department of Defense?

Lockheed Martin is a major defense contractor with extensive experience in aircraft maintenance, repair, and overhaul (MRO). They have a long history of supporting various U.S. military aircraft platforms, including structural repairs. Analyzing their past performance on similar Time and Materials (T&M) contracts would be crucial. This includes reviewing past contract values, performance ratings, any documented overruns, and the efficiency with which they have managed complex structural repair projects. Their established position suggests a capacity to handle such work, but a detailed review of their specific history with structural components for the relevant aircraft type would provide a clearer picture of their reliability and cost-effectiveness in this niche.

How does the $31.4 million contract value compare to industry benchmarks for aircraft structural component repair?

Benchmarking this $31.4 million contract value requires detailed analysis of comparable contracts within the defense aerospace sector. Factors influencing cost include the specific aircraft type, the complexity and extent of structural damage, the required turnaround time, and the specific components being repaired. Contracts for major structural overhauls or repairs on high-demand, complex aircraft like fighters or bombers would naturally command higher prices than routine maintenance on smaller aircraft. Without knowing the precise scope (e.g., number of aircraft, types of components, severity of repairs), a direct comparison is challenging. However, for a year-long engagement involving significant structural work on military aircraft, $31.4 million represents a substantial investment, suggesting a considerable scope of services.

What are the primary risks associated with a Time and Materials (T&M) contract for aircraft structural repair?

The primary risk with a Time and Materials (T&M) contract for aircraft structural repair is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fee or profit margin. If the scope of work expands, if repairs are more complex than initially anticipated, or if labor hours are not efficiently managed, the total cost to the government can significantly exceed initial estimates. Effective oversight, detailed tracking of labor and materials, and strong negotiation skills by the contracting officer are essential to mitigate these risks and ensure the government receives good value. The government must actively manage the contractor's performance to prevent scope creep and ensure efficient resource utilization.

What is the expected program effectiveness and impact on Air Force readiness from this contract?

The effectiveness of this contract is directly tied to its ability to restore and maintain the structural integrity of critical Air Force aircraft. Successful execution should lead to improved aircraft availability, reduced downtime for repairs, and enhanced flight safety. This, in turn, directly contributes to the overall readiness of the Air Force by ensuring that aircraft are mission-capable when needed. The timely and high-quality repair of structural components prevents minor issues from escalating into major safety concerns or grounding aircraft for extended periods. Therefore, the program's effectiveness is measured by its contribution to sustained operational capability and the reliability of the affected aircraft fleet.

How has federal spending on aircraft maintenance and repair evolved over the past decade, and where does this contract fit?

Federal spending on aircraft maintenance and repair has generally remained a significant portion of the Department of Defense budget, driven by the need to sustain aging fleets and modernize capabilities. Over the past decade, there has been a continuous demand for MRO services, influenced by operational tempo, budget cycles, and technological advancements. This $31.4 million contract represents a specific instance of this ongoing spending. While it's a substantial amount for a single contract, it fits within the broader context of billions spent annually by the DoD on aircraft sustainment. Trends may include shifts towards performance-based logistics, increased use of data analytics for predictive maintenance, and efforts to optimize MRO supply chains. This contract's specific focus on structural components highlights a critical sub-category within the larger MRO spending landscape.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1600 E PIONEER PKWY, ARLINGTON, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3460197D0424

IDV Type: IDC

Timeline