DoD Awards $28.6M for AC-130W Trainer Integration, Sole-Source to Lockheed Martin
Contract Overview
Contract Amount: $28,584,494 ($28.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-09-07
End Date: 2018-10-12
Contract Duration: 400 days
Daily Burn Rate: $71.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF AC-130W TO AFT CABIN TRAINER INTEGRATION - SIMULATOR MODIFICATION
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF AC-130W TO AFT CABIN TRAINER INTEGRATION - SIMULATOR MODIFICATION Key points: 1. Contract awarded to a single, large defense contractor. 2. High value contract for specialized aircraft modification. 3. Potential for limited competition due to unique system integration. 4. Sector: Defense, specifically aircraft modification and training systems.
Value Assessment
Rating: fair
The contract value of $28.6M for a simulator modification appears high given the 400-day duration. Benchmarking against similar trainer integration projects is difficult without more specific scope details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers due to the absence of competitive pressure to reduce prices.
Public Impact
Enhances training capabilities for AC-130W aircrews. Supports critical military operations through improved simulation. Investment in advanced defense technology and personnel development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for modification
Positive Signals
- Supports critical defense training
- Utilizes established contractor expertise
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft modification and simulation for training. Spending in this area is driven by the need for advanced military capabilities and readiness.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large business. There is no indication of small business participation in this sole-source award.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The firm fixed-price contract type provides some cost certainty, but the sole-source nature warrants scrutiny of the price reasonableness.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High contract value for a modification project.
- Potential for cost overruns if not closely managed.
- Lack of transparency regarding justification for sole-sourcing.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF AC-130W TO AFT CABIN TRAINER INTEGRATION - SIMULATOR MODIFICATION
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $28.6 million.
What is the period of performance?
Start: 2017-09-07. End: 2018-10-12.
What was the justification for the sole-source award, and was a market research conducted to ensure no other vendors could provide the required services?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Without this information, it's difficult to assess if taxpayer funds were used efficiently. Market research is essential to confirm that no other capable vendors exist, ensuring the government explores all viable options before resorting to a sole-source procurement.
How does the $28.6 million cost compare to the expected benefits and operational improvements derived from the AC-130W trainer integration?
Assessing the value requires a detailed breakdown of the costs versus the projected improvements in training effectiveness and operational readiness. If the enhanced training significantly reduces future operational risks or improves mission success rates, the investment might be justified. However, without a clear cost-benefit analysis, the $28.6 million figure appears substantial for a simulator modification.
What mechanisms are in place to ensure the quality and timely delivery of the simulator modification, given the sole-source nature of the contract?
With a sole-source contract, robust oversight from the contracting agency (Department of Defense) and the administrative contracting officer (DCMA) is paramount. This includes rigorous inspection of deliverables, adherence to milestones, and performance monitoring. The firm fixed-price nature provides some incentive for the contractor to perform efficiently, but active government oversight is key to mitigating risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA862117R0048
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,039,986
Exercised Options: $35,459,986
Current Obligation: $28,584,494
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-09-07
Current End Date: 2018-10-12
Potential End Date: 2018-10-12 00:00:00
Last Modified: 2024-09-06
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