DoD Awards $25.6M for KC-10 Engine Contractor Logistics Support to Lockheed Martin
Contract Overview
Contract Amount: $25,632,473 ($25.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-04-11
End Date: 2019-06-06
Contract Duration: 421 days
Daily Burn Rate: $60.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-10 ENGINE CONTRACTOR LOGISTICS SUPPORT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $25.6 million to LOCKHEED MARTIN CORPORATION for work described as: KC-10 ENGINE CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on sustainment and logistics for a specific aircraft type. 3. Potential for long-term reliance on contractor for specialized support. 4. Sector is critical for maintaining air refueling capabilities.
Value Assessment
Rating: fair
The award amount of $25.6M for a 421-day period suggests a significant but potentially fair price for specialized logistics support. Benchmarking against similar complex aircraft sustainment contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific nature of contractor logistics support for aging aircraft can sometimes limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are allocated for essential aircraft maintenance, ensuring operational readiness. The competitive award process aims to secure the best value for this investment.
Public Impact
Ensures continued operational readiness of the KC-10 fleet. Supports critical air refueling capabilities for military operations. Maintains specialized technical expertise for aging aircraft systems.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Reliance on a single contractor for critical support.
- Potential for cost overruns on specialized maintenance.
- Aging aircraft may require increasingly complex and costly repairs.
Positive Signals
- Awarded through full and open competition.
- Supports essential military aviation assets.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing and support. Spending in this area is crucial for maintaining the operational readiness of military aviation fleets.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corporation, a large business. There is no specific information provided regarding subcontracting opportunities for small businesses on this particular contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure contractor performance, adherence to terms, and proper utilization of taxpayer funds.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contractor dependency for critical systems.
- Aging aircraft maintenance challenges.
- Potential for scope creep in logistics support.
- Limited visibility into long-term sustainment costs.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to LOCKHEED MARTIN CORPORATION. KC-10 ENGINE CONTRACTOR LOGISTICS SUPPORT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $25.6 million.
What is the period of performance?
Start: 2018-04-11. End: 2019-06-06.
What is the long-term cost projection for KC-10 sustainment beyond this contract?
Forecasting long-term sustainment costs for aging aircraft like the KC-10 is complex, involving factors like component lifespan, availability of parts, and evolving maintenance requirements. Without a comprehensive fleet sustainment plan, future costs could escalate significantly, potentially exceeding initial projections and requiring substantial future appropriations.
How does the performance of this contractor compare to previous KC-10 support contracts?
Assessing contractor performance requires access to historical performance metrics, such as on-time delivery, quality of work, and adherence to budget. Without specific performance data from previous contracts, it's difficult to definitively gauge whether Lockheed Martin's current support is an improvement or a continuation of past trends, impacting the overall value assessment.
Are there alternative sustainment strategies being considered for the KC-10 fleet to mitigate long-term costs?
Exploring alternative sustainment strategies, such as in-house maintenance capabilities or competition for different support elements, could offer cost savings and reduce reliance on a single contractor. The DoD should actively investigate options like component remanufacturing, technology insertion for improved reliability, or phased retirement plans to optimize long-term fleet readiness and fiscal responsibility.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1 LOCKHEED BLVD BLDG 10, FORT WORTH, TX, 76108
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: $25,632,473
Exercised Options: $25,632,473
Current Obligation: $25,632,473
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810517D0002
IDV Type: IDC
Timeline
Start Date: 2018-04-11
Current End Date: 2019-06-06
Potential End Date: 2019-06-06 00:00:00
Last Modified: 2020-06-29
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