Air Force awards $17M+ to Lockheed Martin for COLT program CLS, with contract ending Feb 2026

Contract Overview

Contract Amount: $16,993,709 ($17.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-09

End Date: 2026-02-02

Contract Duration: 2,338 days

Daily Burn Rate: $7.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR LOGISTICS SUPPORT (CLS) FOR THE COMMON ORGANIZATIONAL LEVEL TESTER (COLT) PROGRAM.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to LOCKHEED MARTIN CORPORATION for work described as: CONTRACTOR LOGISTICS SUPPORT (CLS) FOR THE COMMON ORGANIZATIONAL LEVEL TESTER (COLT) PROGRAM. Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract has a long duration of 2338 days, suggesting a need for sustained support. 3. The absence of competition raises concerns about potential overpricing and lack of innovation. 4. The contract is for logistics support, a critical but often overlooked aspect of major defense programs. 5. The geographic location in Florida may indicate specific operational needs or existing infrastructure. 6. The contractor, Lockheed Martin, is a major defense contractor with extensive experience in similar programs.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar logistics support contracts for complex testing equipment. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable and do not escalate beyond initial projections. Given the lack of competition, it is difficult to assess if the pricing reflects a competitive market rate. Further analysis of the contractor's historical performance on similar contracts would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms. It also reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive bidding. This can also limit opportunities for other capable businesses to secure government contracts.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring continued operational readiness of the COLT program. Services delivered include crucial contractor logistics support, maintenance, and potentially training related to the COLT system. The geographic impact is primarily centered in Florida, where the contract is being performed. Workforce implications include the potential for skilled technical and logistical jobs to be supported by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type requires robust oversight to prevent cost overruns.
Long contract duration may indicate a lack of readily available alternative solutions.
Limited transparency on specific performance metrics and value for money due to sole-source nature.

Positive Signals

Contractor (Lockheed Martin) is a well-established defense prime with significant experience.
Logistics support is critical for maintaining the operational readiness of complex defense systems like COLT.
Contract provides sustained support, ensuring program continuity.
Contract is being performed in Florida, potentially supporting local technical jobs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting a defense program. The market for defense logistics support is dominated by large, established contractors due to the complexity and security requirements of military systems. Spending in this area is substantial, driven by the need to maintain readiness and operational effectiveness of advanced platforms. Comparable spending benchmarks would typically involve analyzing other long-term sustainment contracts for major defense equipment.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit requirements for subcontracting to small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Lockheed Martin voluntarily includes small businesses in its subcontracting plan. This contract does not appear to be designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program management within the Department of the Air Force. Accountability measures would be defined in the contract's terms and conditions, focusing on performance delivery and cost control. Transparency may be limited due to the sole-source nature and the proprietary information often associated with defense logistics. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Common Organizational Level Tester (COLT) Program
Defense Logistics Support Services
Air Force Sustainment Contracts
Lockheed Martin Defense Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competitive benchmarking data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to LOCKHEED MARTIN CORPORATION. CONTRACTOR LOGISTICS SUPPORT (CLS) FOR THE COMMON ORGANIZATIONAL LEVEL TESTER (COLT) PROGRAM.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

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 $17.0 million.

What is the period of performance?

Start: 2019-09-09. End: 2026-02-02.

What is the historical spending pattern for the COLT program's contractor logistics support?

The provided data indicates a new award starting in September 2019 with an estimated value of $16,993,709 and an end date of February 2026. This suggests that this specific contract represents the current and projected spending for CLS on the COLT program during this period. Without access to historical contract data prior to September 2019 for the COLT program's CLS, it is not possible to establish a long-term spending trend. However, the duration of over 6 years (2338 days) and the substantial dollar amount suggest a significant and ongoing investment in maintaining the COLT system's operational capability.

How does the per-unit cost of the COLT program's logistics support compare to similar systems?

Determining a precise per-unit cost for this contract is not feasible with the given data. The contract is for overall contractor logistics support (CLS) for the Common Organizational Level Tester (COLT) program, encompassing a range of services rather than a discrete number of units. Furthermore, the contract type is Cost Plus Fixed Fee (CPFF), which means the final cost is based on actual allowable costs plus a negotiated fixed fee. Benchmarking would require identifying comparable CLS contracts for similar complex testing equipment, accessing their detailed cost structures, and normalizing for differences in scope, duration, and system complexity. Without such detailed comparative data, a per-unit cost benchmark cannot be reliably established.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a Contractor Logistics Support (CLS) contract, typical KPIs would likely include metrics related to system availability, response times for maintenance and repair, turnaround times for parts, inventory management efficiency, and adherence to maintenance schedules. Performance measurement would be conducted through regular reporting by the contractor, government inspections, and potentially user feedback. The Cost Plus Fixed Fee (CPFF) structure implies that the government will monitor costs closely against the fixed fee and the estimated cost ceiling, ensuring that the contractor meets defined performance standards to earn its fee.

What is Lockheed Martin's track record with similar logistics support contracts for defense systems?

Lockheed Martin Corporation is a major defense contractor with extensive experience in providing contractor logistics support (CLS) for a wide array of complex defense systems, including aircraft, missiles, and command and control systems. They have a long history of managing large-scale sustainment programs for various branches of the U.S. military and international allies. Their track record typically involves managing supply chains, performing maintenance and repair, providing technical support, and ensuring operational readiness. While specific performance details for every contract vary, Lockheed Martin is generally recognized for its capability to handle the scope and complexity required for programs like the COLT.

What are the potential risks associated with the sole-source award and the CPFF contract type?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. The government may not achieve the best possible value for its money. For the Cost Plus Fixed Fee (CPFF) contract type, the main risk is cost escalation. While the fee is fixed, the allowable costs can increase, potentially leading to a higher total contract price than initially anticipated. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. There's also a risk that the contractor may have less incentive to control costs aggressively compared to fixed-price contracts.

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

Solicitation ID: FA853319R0007

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825

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: $16,993,709

Exercised Options: $16,993,709

Current Obligation: $16,993,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA853318D0002

IDV Type: IDC

Timeline