DoD Awards $43.3M for Aircraft Parts to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $43,261,506 ($43.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-07
End Date: 2025-04-30
Contract Duration: 1,028 days
Daily Burn Rate: $42.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BLOCK 8.1.1 PHASE IV
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $43.3 million to LOCKHEED MARTIN CORPORATION for work described as: BLOCK 8.1.1 PHASE IV Key points: 1. Significant contract value for aircraft parts. 2. Awarded to a major defense contractor, Lockheed Martin. 3. Utilizes full and open competition, suggesting market availability. 4. Focuses on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: good
The contract value of $43.3 million for a 1028-day duration appears reasonable given the supplier and the nature of aircraft parts. Benchmarking against similar large-scale defense contracts for specialized components would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition aims to leverage market forces to secure favorable pricing, ultimately benefiting taxpayers by avoiding inflated costs.
Public Impact
Ensures continued supply of critical aircraft parts for the Air Force. Supports a major defense contractor and its supply chain. Potential for technological advancements in aircraft component manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single large contractor for critical parts.
- Potential for cost overruns if not closely monitored.
- Long-term duration could lead to price escalation.
Positive Signals
- Awarded through competitive bidding.
- Supports national defense readiness.
- Clear contract end date.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is crucial for maintaining military aviation capabilities and often involves high-value, specialized components.
Small Business Impact
While the primary awardee is Lockheed Martin, a large corporation, the competitive nature of the award may indirectly benefit small businesses within Lockheed Martin's supply chain. Further analysis would be needed to determine direct small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed-price contract type provides some cost control, but ongoing monitoring of performance and adherence to specifications is essential for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract awarded to a single large prime contractor.
- Potential for supply chain disruptions impacting delivery.
- Long contract duration may not reflect current market prices.
- Lack of specific detail on the parts procured.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.3 million to LOCKHEED MARTIN CORPORATION. BLOCK 8.1.1 PHASE IV
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
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 $43.3 million.
What is the period of performance?
Start: 2022-07-07. End: 2025-04-30.
What is the specific nature of the 'Other Aircraft Parts and Auxiliary Equipment' being procured, and how critical are they to Air Force operations?
The specific parts are not detailed in this award notice, but 'Other Aircraft Parts and Auxiliary Equipment' typically encompasses a wide range of components beyond engines or airframes, such as landing gear, avionics, or structural elements. Their criticality would depend on the specific aircraft platforms they support, ranging from routine maintenance to mission-essential functions.
How does the awarded price compare to historical benchmarks for similar aircraft parts procured by the DoD?
Without specific part details and historical data, a direct comparison is difficult. However, the 'br' (base price or benchmark) value of 42083 suggests a potential reference point. A thorough analysis would involve comparing the per-unit cost or total contract value against similar procurements for comparable components over time.
What mechanisms are in place to ensure the quality and timely delivery of these parts, given the long contract duration?
The contract is firm fixed-price, which incentivizes the contractor to deliver within budget. The Department of the Air Force will likely employ quality assurance surveillance plans (QASPs) and performance metrics to monitor delivery schedules and product quality throughout the contract's 1028-day term.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
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: $54,156,786
Exercised Options: $43,261,506
Current Obligation: $43,261,506
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $22,816,971
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862115D6276
IDV Type: IDC
Timeline
Start Date: 2022-07-07
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-01-16
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)