DoD awards $99.2M for KC-10 Engines, with Lockheed Martin as the contractor
Contract Overview
Contract Amount: $99,221,906 ($99.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-24
End Date: 2024-03-31
Contract Duration: 1,193 days
Daily Burn Rate: $83.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-10 ENGINES
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $99.2 million to LOCKHEED MARTIN CORPORATION for work described as: KC-10 ENGINES Key points: 1. Contract awarded to Lockheed Martin Corporation for KC-10 engines. 2. Full and open competition was utilized for this award. 3. The contract duration is 1193 days, ending March 31, 2024. 4. The award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: good
The total award amount is $99.2 million. Benchmarking against similar aircraft engine contracts is difficult without more specific data on the engine type and scope of work. However, the firm-fixed-price contract type suggests a defined cost structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, maximizing value for the $99.2 million expenditure on essential KC-10 aircraft components.
Public Impact
Ensures continued operational readiness of the KC-10 fleet. Supports critical aerial refueling and transport capabilities for the Air Force. Impacts the aerospace manufacturing sector, specifically engine parts suppliers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if market conditions change significantly during the contract period.
- Dependence on a single contractor for critical engine components.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests a competitive award process.
- Long contract duration allows for stable supply chain planning.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts manufacturing. Spending benchmarks for aircraft engine components can vary widely based on the specific aircraft and engine model, but this award represents a significant investment in maintaining aging fleet capabilities.
Small Business Impact
The data indicates the primary contractor is Lockheed Martin Corporation, a large business. There is no explicit information on small business participation in this specific contract award, suggesting potential for limited direct involvement.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would involve monitoring contract performance, delivery schedules, and adherence to the firm-fixed-price terms to ensure accountability and taxpayer value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Aging aircraft components may require more frequent maintenance.
- Potential for supply chain disruptions affecting engine part availability.
- Long contract duration could expose the government to price volatility if not adequately managed.
- Dependence on specific engine technology for a critical asset.
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 $99.2 million to LOCKHEED MARTIN CORPORATION. KC-10 ENGINES
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 $99.2 million.
What is the period of performance?
Start: 2020-12-24. End: 2024-03-31.
What is the specific engine model being procured, and how does its cost compare to similar engine programs of comparable age and complexity?
The specific engine model for the KC-10 is not detailed in the provided data. To assess value, a comparison would require identifying the exact engine type (e.g., GE CF6 variants) and benchmarking its per-unit cost against other military aircraft engines with similar thrust ratings, age, and technological sophistication. Without this, a precise value assessment is challenging.
What were the key factors that led to the selection of Lockheed Martin, and were there any risks associated with this sole-source or limited competition scenario?
The data states 'FULL AND OPEN COMPETITION', contradicting the premise of sole-source or limited competition. Therefore, the risk associated with limited competition is not applicable here. The selection would have been based on the best value proposal received during the competitive bidding process, aiming to secure the most advantageous terms for the government.
How does the performance and reliability of these KC-10 engines compare to newer aircraft engine technologies, and what is the long-term strategy for fleet modernization?
The KC-10 fleet utilizes the DC-10 airframe, equipped with GE CF6 engines. While reliable, these are older technologies compared to modern turbofan engines. The long-term strategy likely involves eventual replacement of the KC-10 fleet with newer platforms like the KC-46 Pegasus, which uses more advanced and efficient engines, reducing long-term sustainment costs.
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
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: $99,221,906
Exercised Options: $99,221,906
Current Obligation: $99,221,906
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810517D0002
IDV Type: IDC
Timeline
Start Date: 2020-12-24
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2026-01-06
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