DoD awards $13.8M for EGYPT BLOCK 52 aircraft fuel tanks, with Lockheed Martin as sole source

Contract Overview

Contract Amount: $13,771,056 ($13.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2020-08-25

End Date: 2026-11-30

Contract Duration: 2,288 days

Daily Burn Rate: $6.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EGYPT BLOCK 52 AIRCRAFT CONFORMAL FUEL TANKS WITH SUPPORT EQUIPMENT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to LOCKHEED MARTIN CORPORATION for work described as: EGYPT BLOCK 52 AIRCRAFT CONFORMAL FUEL TANKS WITH SUPPORT EQUIPMENT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long contract duration of 2288 days suggests a sustained need for these specialized parts. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. The awardee, Lockheed Martin, is a major defense contractor with extensive experience. 5. The product is classified under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. 6. The contract is being performed in Texas.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific cost breakdowns or comparisons to similar sole-source awards for specialized aircraft components. The $13.8 million award over approximately 6 years suggests a significant investment in these fuel tanks. Given the sole-source nature, it's difficult to assess if the pricing represents optimal value for money compared to a competitive scenario. Further analysis would require understanding the unique specifications and the contractor's cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating EGYPT BLOCK 52 aircraft, ensuring operational readiness. The contract delivers essential conformal fuel tanks and supporting equipment, enhancing aircraft range and payload capabilities. The geographic impact is primarily within Texas, where the contract is being performed. The contract supports specialized manufacturing roles within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in pricing due to sole-source nature makes value assessment difficult.
Long contract duration could mask inefficiencies if not closely monitored.
Reliance on a single contractor for critical components poses a supply chain risk.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Award to a major defense contractor like Lockheed Martin suggests a high likelihood of technical capability and delivery.
The contract addresses a specific and likely critical need for EGYPT BLOCK 52 aircraft.
Performance in Texas aligns with existing aerospace industry infrastructure.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, significant R&D investment, and often, long product lifecycles. Contracts for specialized aircraft components like conformal fuel tanks are typical within this industry. The market for such components is often concentrated among a few large, experienced manufacturers due to stringent quality and performance requirements. Spending benchmarks for similar specialized aircraft parts can vary widely based on aircraft type, complexity, and quantity.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The award to a large prime contractor like Lockheed Martin suggests that opportunities for small businesses would likely be through subcontracting, the extent of which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding specific oversight activities, performance metrics, and any Inspector General involvement is not detailed in the provided data. Accountability rests with the contracting officer and the program office to ensure delivery and compliance.

Related Government Programs

Aircraft Parts Manufacturing
Defense Procurement
Aerospace Components
Lockheed Martin Contracts
Air Force Sustainment

Risk Flags

Sole-source award limits competition.
Lack of detailed cost breakdown hinders value assessment.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to LOCKHEED MARTIN CORPORATION. EGYPT BLOCK 52 AIRCRAFT CONFORMAL FUEL TANKS WITH SUPPORT EQUIPMENT

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 $13.8 million.

What is the period of performance?

Start: 2020-08-25. End: 2026-11-30.

What is the historical spending pattern for EGYPT BLOCK 52 aircraft conformal fuel tanks?

Historical spending data for EGYPT BLOCK 52 aircraft conformal fuel tanks is not directly available in the provided summary. This specific contract, awarded in August 2020 with an end date in November 2026, represents a significant portion of recent or current spending for this item. To understand historical patterns, one would need to access broader federal procurement databases (like FPDS or USASpending.gov) and search for similar contracts awarded to Lockheed Martin or other manufacturers for this specific aircraft type or comparable components over previous fiscal years. Analyzing trends in award values, quantities, and contract types (e.g., sole-source vs. competitive) would reveal the historical context of this procurement.

How does the pricing of this contract compare to similar sole-source awards for specialized aircraft components?

Directly comparing the pricing of this $13.8 million contract to similar sole-source awards is challenging without access to a comprehensive database of comparable sole-source procurements for specialized aircraft components. Factors such as the specific aircraft model (EGYPT BLOCK 52), the complexity and technological requirements of the conformal fuel tanks, the quantity ordered, and the specific support equipment included all influence pricing. Sole-source awards inherently lack the price discovery mechanism of competition, making external benchmarking difficult. A thorough comparison would require identifying contracts with similar technical specifications, contract types, and awardees, and then analyzing their total values and durations, while acknowledging the inherent limitations of comparing non-competitive bids.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) for this contract. However, typical KPIs for aircraft component manufacturing contracts include on-time delivery, adherence to quality standards (e.g., defect rates, compliance with specifications), and meeting technical performance requirements. Risk mitigation strategies are partially indicated by the contract type: a Firm Fixed Price (FFP) contract shifts the primary financial risk of cost overruns to the contractor, Lockheed Martin. Other potential risks include supply chain disruptions, technical failures, or delays, which would likely be managed through contractual clauses, regular progress reviews, and potentially performance bonds. The sole-source nature introduces a risk related to contractor performance and pricing, which might be mitigated through robust government oversight and clear contractual terms.

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

Lockheed Martin Corporation is a major defense contractor with an extensive and long-standing track record of supplying aircraft components and systems to the Department of Defense (DoD). They are known for producing a wide range of military aircraft, including fighter jets and transport planes, and consequently, have deep experience in manufacturing associated parts and subsystems. Their history with the DoD includes numerous contracts for complex systems, engines, avionics, and structural components. While specific data on their past performance for EGYPT BLOCK 52 conformal fuel tanks isn't provided, their overall profile suggests a high level of capability and experience in delivering such specialized equipment. Past performance evaluations and contract databases would offer more granular insights into their specific track record for similar items.

What is the estimated impact of this contract on the small business ecosystem?

Based on the provided data ('sb': false), this contract is not a small business set-aside. Therefore, its direct impact as a prime contract award to a small business is nil. The primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities. Lockheed Martin, as the prime contractor, may engage small businesses for specific parts, services, or materials needed to fulfill this contract. However, the extent and nature of these subcontracting opportunities are not specified. Without a small business subcontracting plan requirement explicitly mentioned, it's difficult to quantify the positive impact on small businesses. The overall effect might be limited unless specific subcontracting goals are set and met.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA823219R3011

Offers Received: 1

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: $13,771,056

Exercised Options: $13,771,056

Current Obligation: $13,771,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline