DoD Awards $114.6M Lockheed Martin Contract for C-130 Long-Term Sustainment
Contract Overview
Contract Amount: $114,555,271 ($114.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2022-02-01
End Date: 2026-12-31
Contract Duration: 1,794 days
Daily Burn Rate: $63.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-130 LONG TERM SUSTAINMENT OF C-130 AIRCRAFT FLEET
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $114.6 million to LOCKHEED MARTIN CORP for work described as: C-130 LONG TERM SUSTAINMENT OF C-130 AIRCRAFT FLEET Key points: 1. Contract awarded to sole incumbent provider, Lockheed Martin. 2. Focuses on sustainment for the C-130 aircraft fleet. 3. Long-term nature of the contract raises questions about future competition. 4. Engineering services sector, with potential for high value and risk.
Value Assessment
Rating: fair
The contract value of $114.6 million over approximately 5 years appears reasonable for long-term sustainment of a critical aircraft fleet. However, without detailed cost breakdowns or benchmarks for similar sustainment contracts, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin, the original equipment manufacturer. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for C-130 sustainment services over the contract duration.
Public Impact
Ensures continued operational readiness of the C-130 fleet, vital for military logistics and transport. Potential for extended reliance on a single contractor, impacting future aircraft modernization efforts. Taxpayer funds are committed to maintaining aging but essential aircraft. Lack of competition could stifle innovation in sustainment practices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long-term sustainment may not reflect best value over the full lifecycle.
- Potential for cost overruns due to lack of competitive pressure.
Positive Signals
- Ensures continued operational capability of a critical asset.
- Provides stability for essential military logistics.
- Fixed-price contract type offers some cost certainty.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting aerospace and defense platforms. Spending benchmarks for long-term aircraft sustainment can vary widely based on fleet size, age, and complexity, but typically represent significant, ongoing investments.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation and does not appear to include specific provisions or set-asides for small businesses. The nature of sole-source, long-term sustainment contracts often favors large, incumbent prime contractors.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the sole-source nature, robust oversight is crucial to ensure fair pricing and performance, potentially through independent cost analyses or performance reviews.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Long-term commitment to aging platform
- Limited small business participation
Tags
engineering-services, department-of-defense, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $114.6 million to LOCKHEED MARTIN CORP. C-130 LONG TERM SUSTAINMENT OF C-130 AIRCRAFT FLEET
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 $114.6 million.
What is the period of performance?
Start: 2022-02-01. End: 2026-12-31.
What is the projected cost savings or efficiency gains that could be realized if this sustainment contract were opened to competition in the future?
Estimating future savings from competition is speculative, but typically, competitive bidding can reduce costs by 10-30% compared to sole-source awards, depending on market dynamics and the complexity of the service. For this $114.6M contract, potential savings could range from $11.5M to $34.4M over its life, assuming a competitive market exists for C-130 sustainment.
What are the specific risks associated with relying solely on Lockheed Martin for C-130 sustainment over an extended period?
The primary risks include potential price escalation without competitive pressure, reduced incentive for innovation in maintenance and support, and a lack of flexibility if the Air Force decides to pursue alternative sustainment strategies or aircraft types. Over-reliance can also create vendor lock-in, making future transitions more difficult and costly.
How does the long-term sustainment strategy for the C-130 fleet align with the Department of Defense's broader modernization and future force structure plans?
The long-term sustainment of the C-130 fleet suggests a continued reliance on this platform for specific logistical roles, even as newer transport aircraft are introduced. Alignment requires ensuring that sustainment costs do not unduly burden budgets needed for next-generation capabilities and that the C-130's role remains relevant within the evolving defense strategy.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $116,477,964
Exercised Options: $116,477,964
Current Obligation: $114,555,271
Subaward Activity
Number of Subawards: 151
Total Subaward Amount: $10,395,369
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA850422D0001
IDV Type: IDC
Timeline
Start Date: 2022-02-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-11-18
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