DoD's $22.6M U-2 Aircraft Maintenance Contract Awarded to Lockheed Martin
Contract Overview
Contract Amount: $22,634,709 ($22.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2010-11-20
Contract Duration: 780 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: U-2 AIRCRAFT PROGRAMMED DEPOT MAINTENANCE
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599
Plain-Language Summary
Department of Defense obligated $22.6 million to LOCKHEED MARTIN CORPORATION for work described as: U-2 AIRCRAFT PROGRAMMED DEPOT MAINTENANCE Key points: 1. The contract focuses on programmed depot maintenance for U-2 aircraft. 2. Lockheed Martin Corporation is the sole awardee, raising questions about competition. 3. The contract value is $22.6 million, with a duration of 780 days. 4. The sector is Defense, specifically Aircraft Manufacturing.
Value Assessment
Rating: fair
The contract value of $22.6 million for programmed depot maintenance over 780 days appears reasonable for specialized aircraft upkeep. Benchmarking against similar complex aircraft maintenance contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted price discovery and potentially led to a higher price than under full and open competition.
Taxpayer Impact: The limited competition may result in taxpayers paying more than necessary for these specialized maintenance services.
Public Impact
Ensures continued operational readiness of the U-2 reconnaissance aircraft fleet. Supports critical intelligence, surveillance, and reconnaissance (ISR) missions. Maintains specialized aerospace maintenance capabilities within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about optimal pricing.
- Sole awardee to incumbent contractor could limit innovation.
- Lack of clear justification for excluding other sources.
Positive Signals
- Ensures specialized maintenance for a critical asset.
- Contract awarded to a known entity with relevant expertise.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for depot maintenance of specialized aircraft can vary significantly based on aircraft type, age, and complexity of required services.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The focus appears to be on a large, specialized defense contractor.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA) to ensure contract compliance and performance standards are met. The 'exclusion of sources' clause warrants specific scrutiny.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may lead to higher costs.
- Potential for contractor lock-in due to specialized nature of work.
- Lack of transparency regarding the exclusion of sources.
- Dependence on a single contractor for critical maintenance.
Tags
aircraft-manufacturing, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to LOCKHEED MARTIN CORPORATION. U-2 AIRCRAFT PROGRAMMED DEPOT MAINTENANCE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.6 million.
What is the period of performance?
Start: 2008-10-01. End: 2010-11-20.
What was the specific justification for excluding other sources from this competition, and was a thorough market research conducted to ensure limited competition was truly necessary?
The justification for excluding other sources is critical for understanding the procurement strategy. A comprehensive market research report should detail why only Lockheed Martin was considered capable of performing this specialized depot maintenance. Without this information, it's difficult to assess if the government received the best possible value and if competition was unnecessarily restricted.
How does the per-unit cost or overall contract value compare to similar programmed depot maintenance contracts for other high-value, specialized aircraft within the DoD inventory?
Benchmarking against similar contracts is essential for evaluating value. If this contract's cost per maintenance event or overall value is significantly higher than comparable contracts for aircraft with similar complexity and age, it suggests potential overpricing. Conversely, if it aligns with or is lower than benchmarks, it indicates reasonable cost management.
What performance metrics and quality assurance measures are in place to ensure the effectiveness and timely completion of the U-2 aircraft maintenance, and how are these monitored?
Effective oversight requires clear performance metrics and robust quality assurance. The contract should outline specific deliverables, quality standards, and timelines. The Defense Contract Management Agency (DCMA) would typically monitor adherence to these, ensuring the maintenance performed is of high quality and contributes to the U-2's operational readiness without delays.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1011 LOCKHEED WAY, PALMDALE, CA, 93599
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,849,796
Exercised Options: $22,680,225
Current Obligation: $22,634,709
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-10-01
Current End Date: 2010-11-20
Potential End Date: 2010-11-20 00:00:00
Last Modified: 2020-04-30
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