DoD awards $26.7M for C-130J MATS III, a critical sustainment program for the Air Force

Contract Overview

Contract Amount: $26,689,204 ($26.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-04-07

End Date: 2025-04-07

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-130J MATS III

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to LOCKHEED MARTIN CORPORATION for work described as: C-130J MATS III Key points: 1. Contract value represents a significant investment in maintaining the operational readiness of the C-130J Super Hercules fleet. 2. The award to Lockheed Martin suggests a focus on leveraging existing expertise for specialized aircraft sustainment. 3. Fixed-price contract type aims to control costs and provide predictability for the government. 4. The single award indicates a specific need or a highly specialized requirement met by the contractor. 5. This contract is essential for ensuring the continued availability of a vital transport aircraft for military operations.

Value Assessment

Rating: good

The $26.7 million award for C-130J MATS III appears reasonable given the critical nature of aircraft sustainment. While specific per-unit costs for maintenance or parts are not detailed, the firm-fixed-price structure provides cost certainty. Benchmarking against similar sustainment contracts for large military aircraft would offer further insight into value for money, but the overall investment aligns with the operational demands of maintaining a fleet of C-130J aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single award suggests that Lockheed Martin was the most advantageous offer, potentially due to specialized knowledge, technical capabilities, or competitive pricing for the specific requirements of the C-130J MATS III program. The competitive process is designed to ensure the government receives the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring that public funds are used efficiently.

Public Impact

The U.S. Air Force benefits directly through enhanced readiness and operational capability of its C-130J Super Hercules fleet. This contract ensures the continued availability of critical airlift and tactical transport services for military missions worldwide. The contract supports specialized maintenance, repair, and logistics services, contributing to the longevity of the aircraft. Work is likely concentrated in Florida, supporting the regional aerospace and defense industry workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is highly concentrated with the incumbent.
Reliance on a single awardee could limit future competition if market dynamics shift.
Ensuring adequate oversight is crucial for fixed-price contracts to prevent scope creep or quality issues.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Full and open competition suggests a robust bidding process.
Award to a known entity like Lockheed Martin may leverage existing expertise and infrastructure.
Sustainment contracts are vital for maintaining the operational readiness of key military assets.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. Sustainment contracts, like MATS III, are crucial for maintaining the operational readiness of aging or complex military platforms. The market for aircraft parts and maintenance is competitive, but specialized platforms like the C-130J often see a concentration of expertise with the original equipment manufacturer or authorized service providers. Spending in this area is driven by defense budgets and the need to ensure the longevity and effectiveness of strategic assets.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While the prime contractor is Lockheed Martin, a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the specific needs of the sustainment program and Lockheed Martin's subcontracting strategy. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. As a firm-fixed-price contract, the primary accountability measure is the delivery of specified services and parts within the agreed-upon price. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-130J Super Hercules Sustainment
Aircraft Maintenance and Repair
Logistics Support Services
Defense Logistics Agency (DLA) Contracts
Air Mobility Command (AMC) Operations

Risk Flags

Potential for sole-source dependency if competition is not maintained in future iterations.
Reliance on OEM for specialized parts and technical data.
Ensuring adequate performance metrics are met under fixed-price terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to LOCKHEED MARTIN CORPORATION. C-130J MATS III

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 $26.7 million.

What is the period of performance?

Start: 2025-04-07. End: 2025-04-07.

What is Lockheed Martin's track record with C-130J sustainment programs?

Lockheed Martin is the original equipment manufacturer (OEM) of the C-130J Super Hercules and has an extensive, long-standing track record in its sustainment. They are responsible for the design, production, and ongoing support of the aircraft globally. Their experience includes providing a comprehensive range of services such as program management, engineering support, supply chain management, depot-level maintenance, and modifications for various C-130 variants operated by the U.S. Air Force and international partners. This deep historical involvement suggests a high level of expertise and familiarity with the aircraft's complex systems and operational requirements, making them a logical choice for sustainment contracts.

How does the $26.7 million award compare to historical spending on C-130J sustainment?

The $26.7 million award for C-130J MATS III represents a specific delivery order or contract action, not the total program cost over its lifecycle. Historical spending on C-130J sustainment by the Department of Defense has been significantly higher, often in the hundreds of millions or even billions of dollars annually, encompassing a wide array of services including depot maintenance, spare parts, upgrades, and contractor logistics support across the entire fleet. This particular award is a component of that larger sustainment effort. To provide a precise comparison, one would need to analyze the specific period and scope of work covered by previous MATS III awards or similar sustainment contracts for the C-130J fleet.

What are the primary risks associated with this C-130J sustainment contract?

Primary risks include potential cost overruns if the firm-fixed-price contract does not adequately account for unforeseen maintenance issues or supply chain disruptions, although the fixed-price nature mitigates this for the government. Another risk is the potential for vendor lock-in, as Lockheed Martin possesses unique knowledge and proprietary data related to the C-130J. Performance risk exists if the contractor fails to meet delivery schedules or quality standards for parts and services, impacting aircraft availability. Furthermore, reliance on a single awardee for specialized sustainment could limit future competitive options if market conditions change or if the contractor's capabilities diminish.

How effective is the C-130J MATS III program in ensuring aircraft readiness?

The C-130J MATS III (Maintenance and Sustainment) program is designed to be a critical component in ensuring the operational readiness of the U.S. Air Force's C-130J Super Hercules fleet. By providing essential maintenance, repair, and logistics support, the program directly contributes to the availability and reliability of these vital transport aircraft. The effectiveness is measured by metrics such as aircraft mission capable rates, turnaround times for repairs, and the timely availability of spare parts. While specific performance data for this award is not public, the continued investment and competitive award process suggest the program is considered effective in meeting the Air Force's sustainment needs.

What is the typical duration and value of similar C-130J sustainment contracts?

Sustainment contracts for major military aircraft platforms like the C-130J are typically long-term agreements, often spanning multiple years and potentially including options that extend their duration. Their total value can range from tens of millions to several billion dollars over the contract's life, depending on the scope of services (e.g., full depot maintenance, component repair, spare parts provisioning, field support) and the number of aircraft covered. The $26.7 million award is likely a specific task order or delivery order within a larger, overarching sustainment framework, reflecting a portion of the total annual or program expenditure for C-130J support.

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: $26,689,204

Exercised Options: $26,689,204

Current Obligation: $26,689,204

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $13,478,330

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