DoD Awards $27.8M to Lockheed Martin for C-130J Sustainment Support to Foreign Government
Contract Overview
Contract Amount: $27,817,588 ($27.8M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2023-01-01
End Date: 2026-04-30
Contract Duration: 1,215 days
Daily Burn Rate: $22.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SUSTAINMENT SUPPORT FOR FOREIGN GOVERNMENT C-130JS
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $27.8 million to LOCKHEED MARTIN CORP for work described as: SUSTAINMENT SUPPORT FOR FOREIGN GOVERNMENT C-130JS Key points: 1. Contract awarded to sole incumbent provider, Lockheed Martin. 2. Significant contract value for sustainment of critical aircraft. 3. Potential for higher costs due to limited competition. 4. Focus on aircraft engine and parts manufacturing sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific details on the services provided and the number of aircraft supported.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, indicating no competition was sought. This limits price discovery and potentially leads to higher costs for the government and the foreign partner.
Taxpayer Impact: Taxpayer funds are being used to support foreign military assets, which requires careful justification and oversight to ensure value for money.
Public Impact
Ensures continued operational readiness of C-130J aircraft for a foreign ally. Supports critical defense capabilities and interoperability. Impacts the aerospace and defense manufacturing sector through continued demand for parts and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost risk.
- Foreign military sales require robust oversight.
Positive Signals
- Supports critical foreign military partner.
- Ensures continued operational capability of key aircraft.
- Long-term sustainment contract provides stability.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this area is often high due to the complexity and specialized nature of the products and services required.
Small Business Impact
There is no indication of small business participation in this sole-source award. Future solicitations should consider opportunities for small businesses in the supply chain.
Oversight & Accountability
Oversight is crucial for cost-plus fixed-fee contracts, especially in foreign military sales. The Air Force must ensure efficient resource utilization and prevent cost creep to protect taxpayer interests.
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.
- Cost-plus contract type increases cost risk.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for price escalation over contract duration.
- Dependency on a single supplier for critical parts.
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 $27.8 million to LOCKHEED MARTIN CORP. SUSTAINMENT SUPPORT FOR FOREIGN GOVERNMENT C-130JS
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 $27.8 million.
What is the period of performance?
Start: 2023-01-01. End: 2026-04-30.
What is the specific breakdown of costs within this Cost Plus Fixed Fee contract, and how does it compare to industry benchmarks for similar sustainment services?
The provided data does not detail the cost breakdown. A Cost Plus Fixed Fee (CPFF) contract means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Without specific service details, number of aircraft, and parts required, a precise benchmark is impossible. However, CPFF contracts generally carry a higher risk of cost overruns compared to fixed-price contracts if not rigorously monitored.
What are the risks associated with a sole-source award for critical aircraft sustainment, particularly concerning long-term cost and availability of parts?
Sole-source awards eliminate competitive pressure, potentially leading to inflated prices and reduced incentives for efficiency. For critical sustainment, this can also create dependency on a single supplier, risking future availability issues or price hikes if the supplier faces production challenges or changes its business strategy. This necessitates strong government negotiation and oversight.
How does this contract contribute to the overall effectiveness and readiness of the foreign partner's C-130J fleet, and what metrics are used to assess this effectiveness?
This contract directly supports the operational readiness of the foreign partner's C-130J fleet by ensuring the availability of essential sustainment, maintenance, and spare parts. The effectiveness is typically measured through metrics like aircraft availability rates, mission capable rates, and turnaround times for repairs. The Department of Defense likely monitors these metrics as part of the foreign military sales agreement.
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: FA855322R0017
Pricing Type: COST PLUS FIXED FEE (U)
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: $27,817,588
Exercised Options: $27,817,588
Current Obligation: $27,817,588
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $7,311,003
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: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-08-25
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