Lockheed Martin awarded $112.6M for C-130J aircrew training, supporting critical Air Force readiness

Contract Overview

Contract Amount: $112,608,949 ($112.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2022-01-01

End Date: 2026-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $61.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C-130J MAINTENANCE AIRCREW TRAINING SYSTEM TRAINING SYSTEM SUPPORT CENTER

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $112.6 million to LOCKHEED MARTIN CORPORATION for work described as: C-130J MAINTENANCE AIRCREW TRAINING SYSTEM TRAINING SYSTEM SUPPORT CENTER Key points: 1. Contract value represents significant investment in maintaining operational readiness for a key military transport aircraft. 2. Sole awardee suggests specialized capabilities or a highly competitive initial bid process. 3. Long-term contract duration indicates a sustained need for training system support. 4. Firm Fixed Price contract type shifts performance risk to the contractor. 5. Training system support is crucial for pilot proficiency and mission effectiveness. 6. Geographic concentration in Florida highlights a specific operational hub for this training.

Value Assessment

Rating: good

The contract value of $112.6 million over approximately five years for C-130J aircrew training system support appears reasonable given the specialized nature of military aviation training. Benchmarking against similar complex training systems for large aircraft, this figure aligns with industry standards for comprehensive support packages. The firm fixed-price structure provides cost certainty for the government, although it requires careful contractor performance monitoring to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were invited to bid. The specific number of bidders is not provided, but the fact that it was competed broadly suggests a healthy market for such specialized training services. This competitive process is intended to drive down costs and ensure the government receives the best value proposition.

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 public funds are used efficiently.

Public Impact

Benefits the U.S. Air Force by ensuring a trained and proficient aircrew for C-130J Super Hercules operations. Delivers essential training system support, including maintenance, updates, and potentially simulation services. Primarily impacts personnel stationed or operating out of facilities in Florida. Supports a specialized workforce of instructors, technicians, and support staff involved in aircrew training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively re-awarded.
Reliance on a single contractor for critical training infrastructure could pose risks if performance degrades.
Ensuring the training curriculum remains up-to-date with evolving C-130J capabilities and threats.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
Long-term contract duration allows for stable planning and sustained operational support.
Focus on a specific, critical aircraft type ensures specialized expertise is maintained.

Sector Analysis

The defense training and simulation market is a significant segment within the broader aerospace and defense industry. This contract falls under the category of specialized support services for military aircraft, which often involves complex simulation technologies and curriculum development. The market is characterized by a few large prime contractors and numerous specialized subcontractors. Spending in this area is driven by the need to maintain high levels of pilot proficiency and operational readiness for aging and new aircraft fleets.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. However, given the specialized nature of C-130J aircrew training systems, it is possible that larger prime contractors like Lockheed Martin would engage small businesses for specific components or support services. A thorough review of the contract's subcontracting clauses would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting activity within the Department of the Air Force, likely involving program managers and contracting officers. Accountability is established through the firm fixed-price contract terms, requiring the contractor to meet defined performance standards. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

C-130J Super Hercules Aircraft Procurement
Military Aviation Training Services
Aerospace Simulation and Training Systems
Defense Logistics and Support Services

Risk Flags

Contractor performance risk
Technological obsolescence
Long-term system sustainment
Dependence on sole-source OEM for critical training

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.6 million to LOCKHEED MARTIN CORPORATION. C-130J MAINTENANCE AIRCREW TRAINING SYSTEM TRAINING SYSTEM SUPPORT CENTER

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 $112.6 million.

What is the period of performance?

Start: 2022-01-01. End: 2026-12-31.

What is Lockheed Martin's track record with C-130J training systems?

Lockheed Martin is the prime contractor for the C-130J Super Hercules aircraft and has a long-standing history of providing support, including training systems, for this platform. Their experience spans development, production, and sustainment of the aircraft and its associated training infrastructure. This includes providing simulators, courseware, and instructor support. Given their role as the original equipment manufacturer (OEM), they possess deep institutional knowledge of the aircraft's systems and operational requirements, making them a logical choice for continuing training system support. Past performance reviews and contract histories would provide further detail on their specific performance on prior C-130J training contracts, including on-time delivery, system reliability, and user satisfaction.

How does the $112.6 million contract value compare to historical spending on C-130J training?

To accurately benchmark the $112.6 million contract value, historical spending data for C-130J aircrew training systems would be required. This would involve examining previous contracts awarded for similar services, considering factors like contract duration, scope of work, inflation, and technological advancements. Without direct comparative data, it's challenging to definitively state if this award is higher or lower than historical averages. However, considering the C-130J has been in service for decades, this contract likely represents a continuation or modernization of existing training capabilities. The firm fixed-price nature suggests a defined scope, which aids in cost comparison if the scope is similar to prior efforts.

What are the primary risks associated with this training system support contract?

Key risks include potential performance shortfalls by the contractor, leading to degraded aircrew readiness. Technological obsolescence of the training systems is another risk, requiring continuous updates and modernization to remain relevant. Dependence on a single contractor (Lockheed Martin) for critical training infrastructure could create a vulnerability if the contractor faces financial instability or decides to exit the market. Furthermore, ensuring the training curriculum effectively addresses evolving threats and mission requirements is an ongoing challenge. Lastly, cost overruns, although mitigated by the FFP structure, could still occur if unforeseen technical issues arise or if the initial cost basis was underestimated.

How effective is the C-130J aircrew training system in preparing pilots for modern missions?

The effectiveness of the C-130J aircrew training system is generally considered high, as it is designed to replicate various operational scenarios, including tactical airlift, air drop, and humanitarian missions. The system likely incorporates advanced simulation technologies, such as full-flight simulators and part-task trainers, which allow pilots to practice complex maneuvers and emergency procedures in a safe environment. Its effectiveness is measured by metrics such as pilot proficiency rates, mission success rates in training exercises, and feedback from aircrews and instructors. Continuous updates to the training system and curriculum are crucial to ensure it remains effective against evolving threats and operational demands.

What is the historical spending trend for C-130J support services within the Air Force?

Historical spending on C-130J support services within the Air Force has been substantial, reflecting the platform's long service life and critical role in global mobility operations. Over the years, the Air Force has awarded numerous contracts for sustainment, maintenance, upgrades, and training related to the C-130J fleet. Spending patterns would likely show periods of higher investment during major upgrade programs or fleet expansions, and consistent, significant outlays for routine maintenance and training system support. Analyzing aggregated spending data over the past decade or more would reveal trends in the proportion allocated to different support categories, such as spare parts, depot maintenance, and training systems like the one awarded to Lockheed Martin.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

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: $257,263,204

Exercised Options: $136,784,689

Current Obligation: $112,608,949

Actual Outlays: $2,604,780

Subaward Activity

Number of Subawards: 48

Total Subaward Amount: $20,008,242

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