Air Force Awards $52.4M for C-5 Galaxy Contractor Logistics Support to Lockheed Martin
Contract Overview
Contract Amount: $52,351,971 ($52.4M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2024-02-01
End Date: 2025-05-31
Contract Duration: 485 days
Daily Burn Rate: $107.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-5 GALAXY CONTRACTOR LOGISTICS SUPPORT (CLS)
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $52.4 million to LOCKHEED MARTIN CORP for work described as: C-5 GALAXY CONTRACTOR LOGISTICS SUPPORT (CLS) Key points: 1. Significant contract value for sustainment of a major airframe. 2. Sole-source award to incumbent contractor raises questions about competition. 3. Potential for cost overruns exists given the long duration and complexity. 4. Aircraft manufacturing sector is critical for national defense readiness.
Value Assessment
Rating: fair
The contract value of $52.4M over 16 months appears reasonable for specialized logistics support of a large, aging airframe like the C-5 Galaxy. However, without detailed cost breakdowns or benchmarks for similar CLS 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. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The justification for sole-source is likely based on unique capabilities or existing infrastructure.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, which may not represent the best possible price. Oversight is needed to ensure fair pricing and efficient use of funds.
Public Impact
Ensures continued operational readiness of the C-5 Galaxy fleet, vital for global logistics and strategic airlift. Supports jobs within the aerospace and defense industry, specifically at Lockheed Martin. Potential for increased costs to taxpayers due to lack of competition. Impacts the Air Force's ability to maintain and deploy critical heavy-lift aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration increases risk of cost escalation.
- Aging airframe may require more extensive and costly support.
Positive Signals
- Ensures continuity of essential logistics support for a critical asset.
- Leverages incumbent contractor's established knowledge and infrastructure.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on sustainment and logistics for military aircraft. Spending benchmarks for similar contractor logistics support (CLS) contracts can vary widely based on the platform's age, complexity, and operational tempo.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large prime contractor. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
Oversight will be crucial to monitor contract performance, costs, and ensure Lockheed Martin meets all delivery and support requirements. The Department of the Air Force's contracting officers are responsible for ensuring fair and reasonable pricing and adherence to contract terms.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for cost escalation
- Aging aircraft platform
- Lack of transparency in pricing
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 $52.4 million to LOCKHEED MARTIN CORP. C-5 GALAXY 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $52.4 million.
What is the period of performance?
Start: 2024-02-01. End: 2025-05-31.
What is the specific justification for awarding this contract sole-source to Lockheed Martin, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to the contractor possessing unique capabilities, proprietary data, or being the only source capable of meeting the requirement. To ensure fair pricing, the Air Force likely conducted a price analysis based on historical data, cost proposals, and potentially independent government cost estimates. Regular performance reviews and audits are also standard oversight mechanisms.
What are the potential risks associated with the long duration and aging nature of the C-5 Galaxy fleet for this logistics support contract?
The long duration (485 days) combined with the aging C-5 fleet presents risks of unforeseen maintenance needs, obsolescence of parts, and increased complexity in repairs. This could lead to cost overruns if not adequately managed through robust contract clauses, contingency planning, and proactive maintenance strategies. The contractor's ability to source parts for an older airframe is also a critical factor.
How does this contract contribute to the overall effectiveness and readiness of the U.S. Air Force's strategic airlift capabilities?
This contract is essential for maintaining the operational readiness of the C-5 Galaxy fleet, which is the Air Force's largest strategic airlifter. Effective contractor logistics support ensures that these aircraft are available for critical missions, including transporting troops, equipment, and humanitarian aid globally. Without this support, aircraft availability would decrease, impacting the Air Force's ability to project power and respond to crises.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $240,150,606
Exercised Options: $240,150,606
Current Obligation: $52,351,971
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852521D0003
IDV Type: IDC
Timeline
Start Date: 2024-02-01
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-09-25
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