DoD Awards $33.1M for C-130J Sustainment to Lockheed Martin for France-Germany Fleet
Contract Overview
Contract Amount: $33,132,436 ($33.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2026-12-31
Contract Duration: 729 days
Daily Burn Rate: $45.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LONG TERM SUSTAINMENT (LTS) IN SUPPORT FOR THE C-130J UNDER FOREIGN MILITARY SALES CASES: FRANCE-GERMANY C-130J FLEET. CASE: FR-D-QCB. FR-D-QAM
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $33.1 million to LOCKHEED MARTIN CORP for work described as: LONG TERM SUSTAINMENT (LTS) IN SUPPORT FOR THE C-130J UNDER FOREIGN MILITARY SALES CASES: FRANCE-GERMANY C-130J FLEET. CASE: FR-D-QCB. FR-D-QAM Key points: 1. The contract is for long-term sustainment of the C-130J aircraft for France and Germany. 2. Lockheed Martin is the sole provider of C-130J sustainment, limiting competition. 3. The firm-fixed-price contract aims to control costs for a critical defense asset. 4. This Foreign Military Sales case supports allied military readiness and interoperability.
Value Assessment
Rating: good
The contract value of $33.1 million for a two-year period appears reasonable for specialized aircraft sustainment. Benchmarking is difficult without specific contract details, but it aligns with typical sustainment costs for complex military platforms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract is sole-source due to Lockheed Martin's exclusive role as the manufacturer and sustainment provider for the C-130J aircraft. This lack of competition may lead to higher prices than if alternatives were available.
Taxpayer Impact: Taxpayer funds are used for Foreign Military Sales, supporting allied defense capabilities and U.S. foreign policy objectives.
Public Impact
Enhances operational readiness for allied C-130J fleets, crucial for joint operations. Supports U.S. defense industrial base through sustainment contracts for key platforms. Facilitates interoperability between U.S. and allied air forces. Ensures continued availability of a vital transport aircraft for partner nations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competitive pricing.
- Long-term sustainment can be costly if not managed efficiently.
- Dependence on a single contractor for critical parts.
Positive Signals
- Supports key allies' military capabilities.
- Ensures interoperability with U.S. forces.
- Maintains readiness of a critical transport platform.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically aircraft manufacturing and support. Spending on sustainment for major platforms like the C-130J is common and essential for maintaining fleet readiness and extending operational life.
Small Business Impact
This contract is awarded to a large prime contractor, Lockheed Martin. There is no indication of subcontracting opportunities for small businesses within the provided data, which is typical for sole-source sustainment contracts of this nature.
Oversight & Accountability
The Department of Defense, through the Air Force, is responsible for oversight. Foreign Military Sales cases are subject to congressional notification and oversight, ensuring transparency and alignment with U.S. foreign policy goals.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for price escalation
- Dependence on single supplier
- Limited transparency on cost drivers
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 $33.1 million to LOCKHEED MARTIN CORP. LONG TERM SUSTAINMENT (LTS) IN SUPPORT FOR THE C-130J UNDER FOREIGN MILITARY SALES CASES: FRANCE-GERMANY C-130J FLEET. CASE: FR-D-QCB. FR-D-QAM
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 $33.1 million.
What is the period of performance?
Start: 2025-01-01. End: 2026-12-31.
What is the projected cost per flight hour for C-130J sustainment under this contract, and how does it compare to historical data or other C-130 variants?
The provided data does not include a cost per flight hour metric. Determining this would require further analysis of operational tempo and maintenance logs. Benchmarking against other C-130 variants or similar aircraft sustainment contracts would offer valuable insights into cost-effectiveness and potential areas for efficiency improvements.
What are the specific risks associated with relying solely on Lockheed Martin for C-130J sustainment, particularly concerning parts availability and potential price increases over the contract duratio
The primary risk is the lack of competition, potentially leading to inflated prices and less incentive for Lockheed Martin to optimize costs. Dependence on a single source also creates vulnerability to supply chain disruptions or unexpected price hikes for proprietary parts and technical data. This necessitates robust contract management and potential long-term strategic sourcing discussions.
How effectively does this contract contribute to the overall mission readiness and interoperability goals for the French and German C-130J fleets?
This contract is crucial for maintaining the operational readiness of the French and German C-130J fleets by ensuring access to necessary parts, technical support, and maintenance. By standardizing sustainment efforts, it directly supports interoperability goals, allowing for seamless joint operations and coalition missions with U.S. and allied forces.
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
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: $33,638,210
Exercised Options: $33,638,210
Current Obligation: $33,132,436
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: 2025-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-11-17
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