Over $355 million awarded for flight training services, primarily to Lockheed Martin Corporation
Contract Overview
Contract Amount: $355,453,493 ($355.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-11-01
End Date: 2019-11-30
Contract Duration: 3,316 days
Daily Burn Rate: $107.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FLIGHT TRAINING
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $355.5 million to LOCKHEED MARTIN CORPORATION for work described as: FLIGHT TRAINING Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract type is a firm fixed price, which shifts cost risk to the contractor. 3. A definitive contract award indicates a long-term agreement for services. 4. The contract duration spans nearly 9 years, suggesting sustained demand for flight training. 5. The primary contractor, Lockheed Martin, is a major defense industry player. 6. The North American Industry Classification System (NAICS) code 611512 points to specialized flight training schools.
Value Assessment
Rating: fair
Benchmarking the value for this specific contract is challenging without comparable data on flight training services of this scale and duration. The firm fixed price structure is generally favorable for the government in managing cost overruns. However, the total award amount of over $355 million over nine years warrants scrutiny to ensure the per-unit costs remain competitive throughout the contract lifecycle.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The fact that it resulted in a definitive contract suggests that the terms and pricing were acceptable to the awarded vendor.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that the government is not overpaying for essential services like flight training.
Public Impact
The primary beneficiaries are the U.S. Air Force personnel requiring specialized flight training. Services delivered include advanced flight instruction and potentially simulator training. The contract has a geographic impact concentrated in Florida, where the training likely takes place. This contract supports a specialized segment of the aviation workforce, including instructors and support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep if contract scope expands beyond initial fixed-price terms.
- Reliance on a single large contractor for a critical training function.
- Ensuring continued relevance of training curriculum to evolving aviation technology.
Positive Signals
- Firm fixed price contract mitigates cost overrun risk for the government.
- Long-term contract provides stability and predictability for training services.
- Full and open competition suggests a competitive pricing environment at award.
Sector Analysis
The flight training sector is a specialized niche within the broader aerospace and defense industry. This contract represents significant spending within the specialized flight training services market (NAICS 611512). Comparable spending benchmarks would typically involve other large-scale government or commercial flight training programs, which are often proprietary. The defense sector heavily relies on such contracts to maintain pilot proficiency and readiness.
Small Business Impact
There is no indication of small business set-asides for this contract, as it was awarded under full and open competition. The prime contractor, Lockheed Martin, is a large corporation. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The focus appears to be on large-scale prime contracting.
Oversight & Accountability
Oversight for this definitive contract would typically fall under the purview of the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is facilitated by the contract's award under full and open competition, with public reporting of contract actions.
Related Government Programs
- Air Force Pilot Training Programs
- Advanced Aviation Training Contracts
- Defense Readiness Training
- Aerospace Education Services
Risk Flags
- Long-term contract duration may reduce flexibility.
- Potential for vendor lock-in.
- Need to ensure training remains current with technological advancements.
Tags
defense, department-of-defense, department-of-the-air-force, lockheed-martin-corporATION, flight-training, definitive-contract, firm-fixed-price, full-and-open-competition, florida, long-term-contract, aviation-services, naics-611512
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $355.5 million to LOCKHEED MARTIN CORPORATION. FLIGHT TRAINING
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 $355.5 million.
What is the period of performance?
Start: 2010-11-01. End: 2019-11-30.
What is the historical spending trend for flight training services by the Department of the Air Force?
Analyzing historical spending trends for flight training by the Department of the Air Force requires access to detailed historical contract databases. However, it is generally understood that the Air Force consistently invests significant resources in flight training to maintain pilot proficiency across various aircraft platforms. Spending can fluctuate based on geopolitical events, modernization programs, and pilot manning levels. Contracts like this one, spanning multiple years and substantial dollar values, indicate a sustained commitment to pilot development and readiness. Without specific historical data, it's difficult to pinpoint exact trends, but the scale of this award suggests it aligns with ongoing, high-priority training requirements.
How does the per-unit cost of this flight training contract compare to industry benchmarks?
Determining the precise per-unit cost for this flight training contract is challenging without knowing the specific deliverables (e.g., hours of instruction, simulator time, number of students trained). The provided data indicates a total award of $355,453,493.21 over a duration of 3316 days (approximately 9 years). To establish a benchmark, one would need to compare the cost per training hour or per student against similar large-scale military or civilian flight training programs. Given the firm fixed-price nature, the contractor is incentivized to manage these costs efficiently. However, without detailed breakdowns of services rendered and the number of trainees, a direct comparison to industry benchmarks is speculative. Generally, large, long-term government contracts may achieve economies of scale, but specialized training can also command premium pricing.
What is Lockheed Martin's track record with similar large-scale government training contracts?
Lockheed Martin Corporation has an extensive track record of managing and executing large-scale government contracts, particularly within the defense sector. They are a prime contractor on numerous complex programs involving aircraft, defense systems, and associated training solutions. Their experience includes providing training for pilots, maintenance crews, and other personnel across various military branches. This includes simulation development, curriculum design, and operational training delivery. Given their established presence and capabilities, it is highly probable that Lockheed Martin possesses the necessary infrastructure, expertise, and past performance to successfully deliver on this significant flight training contract for the Department of the Air Force.
What are the potential risks associated with a single, long-term definitive contract for flight training?
A significant risk associated with a single, long-term definitive contract for flight training is the potential for vendor lock-in and reduced flexibility. If the contractor, Lockheed Martin, underperforms or if market conditions or training needs change drastically, the government may face challenges in modifying the contract or seeking alternative solutions without incurring substantial costs or delays. There's also the risk that the fixed-price nature, while beneficial initially, might not account for unforeseen technological advancements or shifts in training methodologies, potentially leading to outdated training if not managed proactively. Furthermore, over-reliance on one provider could stifle innovation from other potential vendors in the long run.
How does the geographic concentration in Florida impact the accessibility and cost of this flight training?
The geographic concentration of this flight training contract in Florida (ST: FL, SN: FLORIDA) suggests that the training operations are based in that state. This can have several implications. On the cost side, it may leverage existing infrastructure and a potentially competitive regional market for aviation services and personnel. However, it could also lead to increased travel and logistical costs for personnel stationed elsewhere who need to attend training. From an accessibility standpoint, it centralizes training delivery, which can be efficient for managing resources and curriculum. However, it might also create logistical hurdles for trainees not based in Florida. The specific impact on cost and accessibility would depend on the Air Force's overall basing strategy and the distribution of its personnel requiring this training.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Flight Training
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $390,907,186
Exercised Options: $366,876,188
Current Obligation: $355,453,493
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $125,568,915
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-11-01
Current End Date: 2019-11-30
Potential End Date: 2019-11-30 00:00:00
Last Modified: 2025-04-22
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