DoD Spends $26M on C-130J Spares for France/Germany, Sole-Sourced from Lockheed Martin
Contract Overview
Contract Amount: $26,041,941 ($26.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2021-09-10
End Date: 2024-09-03
Contract Duration: 1,089 days
Daily Burn Rate: $23.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF C-130J CATALOG SPARES IN SUPPORT OF COMBINTED FRANCE/GERMAN FLEETS.
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to LOCKHEED MARTIN CORP for work described as: PURCHASE OF C-130J CATALOG SPARES IN SUPPORT OF COMBINTED FRANCE/GERMAN FLEETS. Key points: 1. Significant expenditure on critical aircraft spares for allied fleets. 2. Sole-source procurement raises questions about price competitiveness. 3. Long-term contract duration (3 years) suggests ongoing need. 4. Focus on a specific aircraft model (C-130J) indicates specialized support.
Value Assessment
Rating: questionable
The contract is a firm fixed price delivery order. Without competitive bidding, it's difficult to assess if the $26 million price represents fair value compared to market rates for similar C-130J spares.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This procurement was not available for competition, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for essential aircraft parts may result in inflated prices, impacting the efficient use of taxpayer funds for defense readiness.
Public Impact
Ensures operational readiness of C-130J aircraft used by allied forces. Supports joint military operations and interoperability between France and Germany. Potential for higher costs due to sole-source nature impacts overall defense budget efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- High contract value
Positive Signals
- Supports allied defense capabilities
- Ensures critical aircraft availability
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending benchmarks for specialized aircraft spares can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin, a large corporation. There is no information suggesting opportunities for small businesses in this specific sole-source procurement.
Oversight & Accountability
The Department of the Air Force awarded this delivery order. Oversight would focus on ensuring the necessity of the spares, adherence to contract terms, and justification for the sole-source award.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for overpayment due to lack of competitive bidding.
- Long-term reliance on a single supplier can create supply chain risks.
- Lack of transparency regarding the justification for sole-sourcing.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.0 million to LOCKHEED MARTIN CORP. PURCHASE OF C-130J CATALOG SPARES IN SUPPORT OF COMBINTED FRANCE/GERMAN FLEETS.
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 $26.0 million.
What is the period of performance?
Start: 2021-09-10. End: 2024-09-03.
What is the justification for the sole-source award of C-130J spares to Lockheed Martin, and what steps are taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like proprietary technology, unique capabilities, or urgent need where only one source can fulfill the requirement. The Department of Defense should have documentation justifying this. Fair pricing in sole-source contracts is often assessed through cost analysis, historical pricing, or comparison to similar non-competitive awards, though it inherently lacks the pressure of open market competition.
What are the long-term risks associated with relying on sole-source suppliers for critical aircraft components like C-130J spares?
Long-term risks include escalating costs due to the absence of competitive pressure, potential supply chain vulnerabilities if the sole source faces production issues, and reduced innovation. It can also limit the government's flexibility in sourcing parts or negotiating favorable terms over time, potentially impacting overall defense budget efficiency and readiness.
How does this expenditure contribute to the overall effectiveness and readiness of the combined French/German C-130J fleets?
By providing essential catalog spares, this contract directly ensures the operational availability and readiness of the C-130J aircraft for both France and Germany. This supports their respective military missions and enhances interoperability for joint operations, contributing to collective security and effectiveness within NATO or other allied frameworks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
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: $26,041,941
Exercised Options: $26,041,941
Current Obligation: $26,041,941
Subaward Activity
Number of Subawards: 148
Total Subaward Amount: $19,981,670
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA855321D0001
IDV Type: IDC
Timeline
Start Date: 2021-09-10
Current End Date: 2024-09-03
Potential End Date: 2024-09-03 00:00:00
Last Modified: 2023-08-25
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)