DoD Awards $288M C-5 Contractor Logistics Support to Lockheed Martin
Contract Overview
Contract Amount: $28,840,198 ($28.8M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2020-01-29
End Date: 2025-08-31
Contract Duration: 2,041 days
Daily Burn Rate: $14.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: C-5 CONTRACTOR LOGISTICS SUPPORT (CLS)
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $28.8 million to LOCKHEED MARTIN CORP for work described as: C-5 CONTRACTOR LOGISTICS SUPPORT (CLS) Key points: 1. Significant contract value for sustainment of C-5 aircraft. 2. Sole-source award to incumbent prime contractor, Lockheed Martin. 3. Potential for cost overruns due to fixed-price incentive structure. 4. Focus on aircraft manufacturing sector, specifically large transport aircraft.
Value Assessment
Rating: fair
The $288 million award for C-5 CLS is substantial. Without specific benchmarks for this type of specialized logistics support, a direct comparison is difficult. However, the fixed-price incentive (FPI) contract type suggests an effort to control costs, but can also lead to higher prices if targets are missed.
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 reduces competitive pressure, which could lead to higher costs for the government compared to a fully competed scenario.
Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying a premium for C-5 logistics support.
Public Impact
Ensures continued operational readiness of the C-5 Galaxy fleet, a critical strategic airlift asset. Supports jobs within Lockheed Martin and its supply chain. Potential for increased costs to taxpayers due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Fixed-price incentive contract can lead to cost overruns.
- Long contract duration (over 5 years) increases exposure to market fluctuations.
Positive Signals
- Ensures critical logistics support for a key military asset.
- Leverages incumbent contractor's expertise with the C-5 platform.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on sustainment and logistics for large military transport aircraft. Spending in this area is crucial for maintaining fleet readiness but is often subject to sole-source awards due to the specialized nature of the equipment.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. As a sole-source award to a large prime contractor, direct small business participation may be limited unless subcontracted.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The fixed-price incentive structure requires careful monitoring of performance and cost targets to ensure value for money and prevent excessive spending.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Fixed-price incentive contract carries risk of cost overruns.
- Long-term nature of the contract increases exposure to economic volatility.
- Dependence on a single contractor for critical support.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.8 million to LOCKHEED MARTIN CORP. C-5 CONTRACTOR LOGISTICS SUPPORT (CLS)
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2020-01-29. End: 2025-08-31.
What is the historical cost performance of C-5 CLS contracts awarded to Lockheed Martin, and how does it compare to industry benchmarks for similar aircraft sustainment programs?
Historical cost performance data for C-5 CLS contracts is essential for a thorough value assessment. Without this, it's difficult to determine if the current $288 million award represents fair and reasonable pricing. Benchmarking against similar large aircraft sustainment programs, considering factors like fleet size, age, and operational tempo, would provide crucial context for evaluating cost-effectiveness and identifying potential areas of overspending.
What specific justifications were provided for the sole-source award, and what steps were taken to ensure the government received the best possible price under these circumstances?
The justification for a sole-source award is critical for understanding the rationale behind the lack of competition. Typically, this involves demonstrating that only one source can meet the requirement due to unique capabilities or proprietary technology. The government should have conducted thorough price analysis, including reviewing cost proposals, historical pricing, and independent government cost estimates, to negotiate the most favorable terms possible within the fixed-price incentive framework.
How will the effectiveness of the contractor's logistics support be measured, and what are the key performance indicators (KPIs) to ensure C-5 aircraft readiness and mission capability?
Measuring the effectiveness of logistics support is paramount for ensuring the C-5 fleet's operational readiness. Key performance indicators should include metrics such as aircraft availability rates, response times for parts and maintenance, turnaround times for repairs, and the successful completion of scheduled maintenance. Clear KPIs, tied to contract incentives, will incentivize Lockheed Martin to maintain high standards and directly contribute to the warfighter's mission success.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
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: FIXED PRICE INCENTIVE (L)
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: $28,840,198
Exercised Options: $28,840,198
Current Obligation: $28,840,198
Actual Outlays: $1,751,755
Subaward Activity
Number of Subawards: 168
Total Subaward Amount: $12,103,617
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852516D0003
IDV Type: IDC
Timeline
Start Date: 2020-01-29
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2025-09-23
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