DoD Awards $30.1M to Lockheed Martin for C-130J Sustainment Support to Foreign Governments
Contract Overview
Contract Amount: $30,103,085 ($30.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2026-09-30
Contract Duration: 1,368 days
Daily Burn Rate: $22.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUSTAINMENT SUPPORT FOR FOREIGN GOVERNMENT C-130J'S
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to LOCKHEED MARTIN CORP for work described as: SUSTAINMENT SUPPORT FOR FOREIGN GOVERNMENT C-130J'S Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole-source award to incumbent manufacturer raises competition concerns. 3. Potential for long-term reliance on a single provider. 4. Focus on foreign military sales highlights international defense cooperation.
Value Assessment
Rating: fair
The contract value of $30.1M is for sustainment support, which can be complex and costly. Without specific performance metrics or benchmarks for similar foreign military sales sustainment contracts, a precise value assessment is difficult. However, the sole-source nature suggests limited price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only Lockheed Martin was considered capable of providing the required sustainment for the C-130J aircraft. This limits price competition and may result in higher costs than if multiple vendors were involved.
Taxpayer Impact: Taxpayer funds are being used to support foreign allies' military equipment, which can have geopolitical benefits but also represents a direct financial outlay.
Public Impact
Ensures operational readiness of C-130J aircraft for allied nations. Supports U.S. foreign policy objectives through military assistance. Contributes to the global aerospace sustainment ecosystem.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing for foreign military sales.
- Potential for cost overruns in long-term sustainment contracts.
Positive Signals
- Supports critical allied military capabilities.
- Leverages existing manufacturer expertise for specialized aircraft.
- Contributes to international security partnerships.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment. Spending in this area is crucial for maintaining the operational readiness of military assets, both domestically and for allied nations. Benchmarks for sustainment can vary widely based on aircraft type and service life.
Small Business Impact
This contract was awarded directly to Lockheed Martin, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data. The nature of specialized aircraft sustainment often involves proprietary systems that limit broader small business participation.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for overseeing this contract. Oversight would focus on ensuring timely delivery of sustainment services and adherence to contract terms. The sole-source nature necessitates careful monitoring to ensure fair pricing and effective service delivery.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Limited price competition
- Potential for cost escalation
- Long-term vendor dependency
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 $30.1 million to LOCKHEED MARTIN CORP. SUSTAINMENT SUPPORT FOR FOREIGN GOVERNMENT C-130J'S
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 $30.1 million.
What is the period of performance?
Start: 2023-01-01. End: 2026-09-30.
What is the total cost of ownership for a C-130J aircraft over its lifecycle, and how does this sustainment contract contribute to that figure?
The total cost of ownership for a C-130J aircraft includes acquisition, sustainment, upgrades, and eventual disposal. Sustainment costs, like this contract, are a significant portion, often exceeding the initial purchase price over the aircraft's 20-30 year lifespan. This $30.1M contract represents a portion of the ongoing operational expenses required to keep the aircraft flying, covering maintenance, spare parts, and technical support.
What are the specific risks associated with a sole-source sustainment contract for critical military aircraft like the C-130J?
The primary risks of a sole-source sustainment contract include a lack of competitive pricing, potentially leading to inflated costs for the government and allied nations. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single provider, limiting flexibility for future upgrades or alternative solutions. Furthermore, a sole-source provider might have less incentive to innovate or improve efficiency compared to a competitive market.
How does investing in sustainment support for foreign C-130Js align with U.S. national security and foreign policy objectives?
Investing in sustainment support for allied C-130Js strengthens interoperability and operational readiness among partner nations, enhancing collective security capabilities. It demonstrates U.S. commitment to its allies, fostering stronger diplomatic and military relationships. By ensuring the continued effectiveness of these critical transport aircraft, the U.S. supports allies' ability to conduct operations, respond to crises, and contribute to regional stability, aligning with broader U.S. foreign policy goals.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
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: FA855322R0013
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: $31,663,644
Exercised Options: $31,663,644
Current Obligation: $30,103,085
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $3,064,299
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: 2023-01-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-05
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