DoD Awards $32.3M to Lockheed Martin for C-130J Sustainment, Facing Limited Competition
Contract Overview
Contract Amount: $32,274,386 ($32.3M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2019-10-24
End Date: 2026-07-31
Contract Duration: 2,472 days
Daily Burn Rate: $13.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUPPORT AND SUSTAINMENT SERVICES FOR THE FRENCH C-130J PROGRAM
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $32.3 million to LOCKHEED MARTIN CORP for work described as: SUPPORT AND SUSTAINMENT SERVICES FOR THE FRENCH C-130J PROGRAM Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole provider Lockheed Martin dominates the C-130J support market. 3. Risk of high costs due to lack of competitive bidding. 4. Engineering services sector, critical for defense readiness.
Value Assessment
Rating: questionable
The contract value of $32.3M for sustainment services is difficult to assess without comparable benchmarks. Given the sole-source nature, there's a risk of inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these essential sustainment services.
Public Impact
Ensures continued operational readiness of the C-130J fleet. Supports a critical component of U.S. Air Force logistics and transport capabilities. Potential for cost overruns due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost escalation without competitive pressure.
- Long contract duration increases exposure to price changes.
Positive Signals
- Ensures critical sustainment for a key military asset.
- Contract awarded to the original equipment manufacturer, likely possessing unique expertise.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex aerospace platforms. Defense engineering services often involve high costs due to specialized knowledge and limited competition.
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.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of the Air Force is responsible for monitoring performance and costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of price competition
- Potential for cost overruns
- Long-term dependency on a single provider
Tags
engineering-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.3 million to LOCKHEED MARTIN CORP. SUPPORT AND SUSTAINMENT SERVICES FOR THE FRENCH C-130J PROGRAM
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 $32.3 million.
What is the period of performance?
Start: 2019-10-24. End: 2026-07-31.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single entity. For the C-130J program, Lockheed Martin is the original equipment manufacturer and likely possesses the exclusive technical data and expertise required for its sustainment. However, a thorough review should confirm that no viable alternatives or competitive approaches were overlooked.
How are cost controls and price reasonableness ensured in this sole-source arrangement?
Ensuring price reasonableness in sole-source contracts requires robust government oversight, including detailed cost analysis, benchmarking against similar services (if available), and negotiation of profit margins. The Air Force should employ experienced contract specialists to scrutinize Lockheed Martin's cost proposals and ensure that the final price reflects fair value for the services rendered.
What is the long-term strategy for C-130J sustainment to potentially introduce competition in the future?
The long-term strategy should explore options for fostering future competition, such as requiring Lockheed Martin to share technical data or developing alternative sustainment solutions. The government could also investigate opportunities for second-sourcing or developing in-house capabilities where feasible, to mitigate reliance on a single provider and drive down costs over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA855320R0007
Offers Received: 1
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: $38,527,793
Exercised Options: $36,206,390
Current Obligation: $32,274,386
Subaward Activity
Number of Subawards: 54
Total Subaward Amount: $9,670,420
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-10-24
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-09-12
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