DoD's $85.8M NAVAIR Bundle Contract Awarded to Lockheed Martin for Aircraft Parts
Contract Overview
Contract Amount: $85,861,112 ($85.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-12-22
End Date: 2027-02-28
Contract Duration: 1,529 days
Daily Burn Rate: $56.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVAIR BUNDLE FY23
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $85.9 million to LOCKHEED MARTIN CORPORATION for work described as: NAVAIR BUNDLE FY23 Key points: 1. The contract value of $85.8 million represents a significant investment in aircraft parts. 2. Lockheed Martin, a major defense contractor, secured this award. 3. The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', indicating a focus on specialized components. 4. The spending is categorized under the Department of Defense, specifically the Air Force.
Value Assessment
Rating: fair
The contract value is substantial, but without specific unit cost data or benchmarks for 'Other Aircraft Parts', a precise value assessment is difficult. The fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The $85.8 million expenditure represents taxpayer funds allocated to defense procurement, aiming to ensure operational readiness of aircraft.
Public Impact
Ensures availability of critical aircraft parts for the Air Force. Supports a major defense contractor and its supply chain. Contributes to the overall readiness and operational capability of military aviation assets. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data for granular value analysis.
- Dependence on a single large contractor for specialized parts.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type offers cost predictability.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is critical for maintaining military readiness and technological superiority.
Small Business Impact
The data indicates the award went to Lockheed Martin Corporation, a large prime contractor. There is no explicit information on small business participation in this specific award, but large prime contracts often involve subcontracting opportunities.
Oversight & Accountability
The Department of Defense and the Air Force are responsible for oversight of this contract. The firm fixed-price structure and full and open competition are standard oversight mechanisms to ensure value and fair pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed breakdown of parts and quantities.
- Potential for cost escalation in future procurements.
- Limited visibility into small business subcontracting.
- Long contract duration (over 4 years).
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 $85.9 million to LOCKHEED MARTIN CORPORATION. NAVAIR BUNDLE FY23
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 $85.9 million.
What is the period of performance?
Start: 2022-12-22. End: 2027-02-28.
What is the typical cost range for similar 'Other Aircraft Parts and Auxiliary Equipment' to benchmark this award?
Benchmarking this award requires detailed data on the specific types of aircraft parts procured. Without itemized lists and quantities, comparing to industry standards for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' is challenging. However, given the prime contractor and the defense sector, costs are likely to be at the higher end due to specialized requirements, stringent quality control, and R&D investments.
What are the potential risks associated with relying on a single large contractor for these aircraft parts?
Relying on a single large contractor like Lockheed Martin can pose risks such as potential price increases in future contracts due to reduced competition, supply chain disruptions if the contractor faces issues, and a lack of innovation if alternative solutions are not explored. However, for specialized or proprietary components, this can also ensure quality and compatibility.
How effectively does the 'full and open competition' method ensure optimal value for this specific contract?
The 'full and open competition' method is designed to maximize value by encouraging multiple bidders to offer their best prices and technical solutions. For this contract, it suggests that Lockheed Martin's proposal was deemed the most advantageous among those submitted. The effectiveness is further supported by the firm fixed-price contract type, which shifts cost risk to the contractor.
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: 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: $87,349,544
Exercised Options: $85,861,112
Current Obligation: $85,861,112
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $44,579,929
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: 2022-12-22
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-01-16
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