Over $18.9 million awarded to Lockheed Martin Corp for aircraft engine parts, with a significant portion allocated to a single delivery order
Contract Overview
Contract Amount: $18,964,232 ($19.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2024-08-07
End Date: 2026-09-30
Contract Duration: 784 days
Daily Burn Rate: $24.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FRANCE AND GERMANY C-CHECKS
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to LOCKHEED MARTIN CORP for work described as: FRANCE AND GERMANY C-CHECKS Key points: 1. The contract's value appears reasonable given the specialized nature of aircraft engine components, but detailed benchmarking is needed. 2. Competition was limited, raising questions about potential price inflation and the optimal use of taxpayer funds. 3. The contract duration of over two years suggests a sustained need for these critical parts. 4. Performance context is limited without specific delivery schedules and quality metrics. 5. This contract falls within the Defense sector, specifically supporting aircraft sustainment.
Value Assessment
Rating: fair
The awarded amount of $18.9 million for aircraft engine and engine parts manufacturing is substantial. Benchmarking against similar contracts for specialized aerospace components is crucial to assess value for money. Without specific details on the parts being procured and their market rates, it is difficult to definitively assess if the pricing is competitive. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential for higher costs than if a competitive bidding process had occurred.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This means that only one bidder, Lockheed Martin Corp, was considered for this award. While sole-source awards can be justified for unique capabilities or national security reasons, they limit price discovery and can potentially lead to higher costs for the government compared to a fully competed contract.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these aircraft engine parts, as there was no incentive for multiple suppliers to bid competitively.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Air Force, ensuring the operational readiness of aircraft. The services delivered include the provision of critical aircraft engine and engine parts, essential for maintenance and repair. The geographic impact is likely concentrated around Air Force bases or maintenance facilities where these aircraft are operated or serviced. Workforce implications include supporting specialized manufacturing jobs within Lockheed Martin and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in higher prices for taxpayers.
- Lack of transparency in the sole-source justification requires further scrutiny.
- Dependence on a single supplier could pose supply chain risks.
Positive Signals
- Ensures availability of critical aircraft engine parts for national defense.
- Award to a major defense contractor suggests established manufacturing capabilities.
- Long contract duration indicates a sustained and important requirement.
Sector Analysis
The defense aerospace sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Contracts for aircraft engine parts are critical for maintaining the operational readiness of military fleets. Lockheed Martin is a dominant player in this sector. Spending benchmarks for similar engine components are often proprietary or difficult to compare directly due to unique specifications and configurations.
Small Business Impact
The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist within Lockheed Martin's supply chain, but this is not explicitly detailed in the award information.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures would be tied to contract performance clauses, delivery schedules, and quality standards. Transparency is limited due to the sole-source nature of the award, but contract awards are generally published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Aircraft Maintenance and Repair Services
- Aerospace Manufacturing
- Defense Logistics Support
- Military Aircraft Sustainment
Risk Flags
- Sole-source award limits price competition.
- Lack of detailed part specification hinders value assessment.
- Performance metrics and quality assurance details are not provided.
Tags
defense, department-of-defense, department-of-the-air-force, lockheed-martin-corp, aircraft-engine-parts, sole-source, delivery-order, firm-fixed-price, major-contractor, aerospace, parts-manufacturing, georgia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to LOCKHEED MARTIN CORP. FRANCE AND GERMANY C-CHECKS
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 $19.0 million.
What is the period of performance?
Start: 2024-08-07. End: 2026-09-30.
What specific aircraft engines and parts are being procured under this contract?
The provided data indicates the contract is for 'Aircraft Engine and Engine Parts Manufacturing' but does not specify the exact models of engines or the types of parts. This level of detail is crucial for understanding the criticality of the components, their technological sophistication, and for performing accurate value comparisons. Without this information, it's challenging to benchmark the pricing against similar procurements or assess the potential impact of supply chain disruptions.
What was the justification for awarding this contract on a sole-source basis?
The contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source procurement. Typical justifications for sole-source awards include unique capabilities, urgent and compelling needs, or situations where only one responsible source can provide the required supplies or services. A detailed justification document should exist within the Department of Defense outlining why Lockheed Martin was the only viable option and why competition was not feasible or practical for this specific requirement. This justification is key to understanding if the sole-source award was appropriate and served the government's best interest.
How does the awarded amount compare to historical spending on similar aircraft engine parts by the Department of Defense?
Comparing the $18.9 million award to historical spending requires access to detailed procurement data for similar aircraft engine parts. Historical data for specific engine models and part types procured by the Air Force or other branches would be necessary. Without this granular information, a direct comparison is difficult. However, the duration of the contract (784 days) and the fact that it's for engine parts suggest a sustained need, and the total value should be analyzed in the context of annual sustainment budgets for the relevant aircraft fleets.
What are the key performance indicators (KPIs) and quality assurance measures for this contract?
The provided data does not specify the key performance indicators (KPIs) or quality assurance measures for this contract. For aircraft engine parts, critical KPIs would likely include on-time delivery rates, defect rates, adherence to stringent aerospace quality standards (e.g., AS9100), and compliance with technical specifications. Robust quality assurance processes are essential to ensure the safety and reliability of aircraft engines. The absence of this information in the summary data limits the assessment of performance risk and overall value.
What is the potential impact of this contract on the broader aerospace supply chain, particularly for small businesses?
As a sole-source award to a large prime contractor like Lockheed Martin, the direct impact on small businesses is not immediately apparent from the award data itself. However, large defense contracts often involve extensive subcontracting. It is plausible that Lockheed Martin will engage small businesses within its supply chain to fulfill parts of this contract. The extent of small business subcontracting would depend on Lockheed Martin's internal policies and any specific requirements mandated by the Department of Defense, which are not detailed here.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $18,964,232
Exercised Options: $18,964,232
Current Obligation: $18,964,232
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: 2024-08-07
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-11-06
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