NOAA Awards $461M to Lockheed Martin for Four Modified C-130J Aircraft
Contract Overview
Contract Amount: $461,039,171 ($461.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Commerce
Start Date: 2024-09-30
End Date: 2029-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $252.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NOAA/OMAO_PRODUCTION OF UP TO FOUR (4) FULLY MODIFIED C130J AIRCRAFT
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Commerce obligated $461.0 million to LOCKHEED MARTIN CORPORATION for work described as: NOAA/OMAO_PRODUCTION OF UP TO FOUR (4) FULLY MODIFIED C130J AIRCRAFT Key points: 1. Significant investment in specialized aircraft for NOAA's operational needs. 2. Sole awardee is Lockheed Martin, a major defense contractor. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Aircraft Manufacturing, a high-value, complex industry.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost control. While the fixed fee provides some predictability for the contractor's profit, the government bears the risk of cost overruns. Benchmarking CPFF contracts for complex aircraft modifications is challenging due to unique specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have explored all potential sources, potentially impacting price discovery and overall value for the taxpayer.
Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price for these highly specialized aircraft modifications.
Public Impact
Enhances NOAA's aerial research and operational capabilities. Supports critical weather monitoring and environmental research missions. Potential for long-term reliance on a single contractor for modifications and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition method
- Sole awardee is a large defense contractor
Positive Signals
- Acquisition of critical operational assets
- Long-term contract duration for stability
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, characterized by high technological complexity and significant capital investment. Benchmarks for similar large-scale aircraft modification contracts are often proprietary or highly specific, making direct comparison difficult.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The contract is managed by the National Oceanic and Atmospheric Administration (NOAA) under the Department of Commerce. Oversight will be crucial to manage costs under the CPFF structure and ensure adherence to the limited competition justification.
Related Government Programs
- Aircraft Manufacturing
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Cost overrun potential due to CPFF structure
- Limited competition may not yield best value
- Dependence on a single, large contractor
- Potential for scope creep in modifications
Tags
aircraft-manufacturing, department-of-commerce, ga, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $461.0 million to LOCKHEED MARTIN CORPORATION. NOAA/OMAO_PRODUCTION OF UP TO FOUR (4) FULLY MODIFIED C130J AIRCRAFT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $461.0 million.
What is the period of performance?
Start: 2024-09-30. End: 2029-09-29.
What is the justification for limiting competition for these C-130J modifications?
The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' needs detailed examination. Typically, such exclusions are based on unique capabilities, proprietary technology, or specific integration requirements that only a particular source can meet. Understanding these specific requirements is key to assessing if the limited competition truly served the government's best interest or if alternative solutions were overlooked.
How will NOAA mitigate cost risks associated with the Cost Plus Fixed Fee structure?
NOAA must implement robust cost tracking and oversight mechanisms. This includes detailed review of contractor expenditures, regular performance reviews, and clear communication channels to address any potential cost deviations early. Establishing realistic cost targets and performance incentives within the fixed fee structure can also help manage overall project expenses and ensure value.
What is the long-term strategic value of modifying C-130J aircraft for NOAA's mission?
Modifying C-130J aircraft provides NOAA with highly capable platforms for critical missions such as hurricane research, atmospheric sensing, and environmental monitoring. These aircraft offer extended range, payload capacity, and advanced sensor integration capabilities, which are essential for collecting vital data in challenging environments. This investment enhances NOAA's ability to fulfill its scientific and operational mandates effectively.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1305M224RNMAN0230
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 3251 HANOVER ST, PALO ALTO, CA, 94304
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $849,970,951
Exercised Options: $461,039,171
Current Obligation: $461,039,171
Actual Outlays: $35,203,342
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-30
Current End Date: 2029-09-29
Potential End Date: 2032-03-30 00:00:00
Last Modified: 2026-03-06
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)