DoD Awards $60M C-130J Center Wing Replacement to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $59,958,114 ($60.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2020-03-05
End Date: 2025-11-26
Contract Duration: 2,092 days
Daily Burn Rate: $28.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-130J CENTER WING REPLACEMENT PROGRAM
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $60.0 million to LOCKHEED MARTIN CORP for work described as: C-130J CENTER WING REPLACEMENT PROGRAM Key points: 1. Significant contract value for aircraft component manufacturing. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Aircraft manufacturing sector dominated by a few large players.
Value Assessment
Rating: questionable
The contract value of $59.96 million for center wing replacements is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to potential alternatives or previous contracts for similar components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical aircraft components.
Public Impact
Ensures continued operational readiness of the C-130J Super Hercules fleet. Supports critical military airlift capabilities for the U.S. Air Force. Potential for long-term sustainment and follow-on contracts for Lockheed Martin. Impacts the availability of specialized aircraft manufacturing expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Essential for fleet readiness
- Supports critical defense capabilities
Sector Analysis
The aircraft manufacturing sector is highly specialized and often characterized by a few dominant players, especially for complex military platforms like the C-130J. Spending in this area is critical for national defense but requires careful oversight due to high entry barriers and R&D costs.
Small Business Impact
This contract was awarded directly to Lockheed Martin, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, which is common for sole-source awards of this nature.
Oversight & Accountability
The sole-source nature of this award warrants close oversight by the Department of Defense to ensure fair pricing and adherence to contract terms. Transparency in the justification for not competing the award is crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for cost overruns due to absence of market competition.
- Limited transparency on the justification for non-competition.
- Concentration of critical component manufacturing with one supplier.
Tags
aircraft-manufacturing, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.0 million to LOCKHEED MARTIN CORP. C-130J CENTER WING REPLACEMENT PROGRAM
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $60.0 million.
What is the period of performance?
Start: 2020-03-05. End: 2025-11-26.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions or competitive options thoroughly explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this C-130J center wing replacement, it's likely tied to Lockheed Martin's exclusive knowledge and manufacturing rights for the aircraft. A thorough review would involve assessing if any other entity could realistically produce or refurbish these specific components within the required timeframe and specifications.
How does the awarded price compare to historical costs for similar C-130J center wing replacements or comparable aircraft components?
Benchmarking this $59.96 million contract against historical data is crucial for assessing value. Without access to previous contract pricing for identical or similar center wing assemblies, or data on the cost of manufacturing comparable large aircraft structural components, it's challenging to determine if the price is fair. The lack of competition makes this comparison even more vital for oversight.
What is the expected impact of this sole-source award on the long-term sustainment costs and availability of the C-130J fleet?
A sole-source award can set a precedent for future sustainment and repair contracts related to the C-130J. If pricing is not carefully managed now, it could lead to inflated long-term costs for maintaining the fleet's airworthiness. It also concentrates the supply chain risk with a single provider, potentially impacting parts availability if the contractor faces production issues.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA850419R0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
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: $59,958,114
Exercised Options: $59,958,114
Current Obligation: $59,958,114
Actual Outlays: $241,940
Subaward Activity
Number of Subawards: 143
Total Subaward Amount: $6,182,340
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-03-05
Current End Date: 2025-11-26
Potential End Date: 2025-11-26 00:00:00
Last Modified: 2025-04-24
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