DoD Awards $30.5M for C-130J Training and Maintenance to Lockheed Martin
Contract Overview
Contract Amount: $30,474,631 ($30.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2026-07-31
Contract Duration: 1,035 days
Daily Burn Rate: $29.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-130J MAINTENANCE AND AIRCREW TRAINING SYSTEM
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $30.5 million to LOCKHEED MARTIN CORPORATION for work described as: C-130J MAINTENANCE AND AIRCREW TRAINING SYSTEM Key points: 1. Contract awarded to incumbent, Lockheed Martin, for C-130J maintenance and training. 2. Significant contract value suggests critical operational need for the C-130J fleet. 3. Sole incumbent supplier raises potential concerns about competitive pricing and innovation. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: good
The $30.5 million award for C-130J maintenance and training appears reasonable given the specialized nature of the aircraft and the incumbent's role. Benchmarking against similar complex aircraft sustainment contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract type is 'full and open competition', the award to Lockheed Martin, the original equipment manufacturer, suggests they likely had a significant advantage. Price discovery may have been influenced by their established expertise and proprietary knowledge.
Taxpayer Impact: Taxpayer funds are supporting the sustainment of a critical military asset, ensuring operational readiness. The competitive process, even with an incumbent advantage, aims to secure fair pricing.
Public Impact
Ensures continued operational readiness of the C-130J Super Hercules fleet. Supports aircrew proficiency through advanced training systems. Maintains the complex systems of a vital military transport aircraft. Contributes to the defense industrial base through a major defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source dependency on Lockheed Martin for future sustainment.
- Limited visibility into the cost breakdown for maintenance and training components.
Positive Signals
- Ensures continuity of essential C-130J operations.
- Leverages incumbent expertise for efficient system maintenance.
- Firm fixed price contract provides cost certainty for this delivery order.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, supporting the sustainment of a key military transport aircraft. Spending in this sector is often characterized by high technical requirements and long product lifecycles.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific delivery order, suggesting opportunities may lie in subcontracting roles.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed price nature of the contract provides a degree of cost control, but ongoing monitoring of performance and adherence to scope is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole incumbent supplier
- Potential for price escalation
- Limited visibility into cost structure
- Dependency on proprietary technology
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 $30.5 million to LOCKHEED MARTIN CORPORATION. C-130J MAINTENANCE AND AIRCREW TRAINING SYSTEM
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 $30.5 million.
What is the period of performance?
Start: 2023-09-30. End: 2026-07-31.
What is the projected cost savings or efficiency gain from using Lockheed Martin's integrated training and maintenance system compared to separate procurements?
Assessing the specific cost savings requires a detailed comparison of integrated versus fragmented sustainment approaches. Lockheed Martin's system likely offers efficiencies through streamlined logistics, shared technical data, and unified support. However, the absence of direct competition for this delivery order makes quantifying savings challenging without internal cost analysis or benchmarking against alternative sustainment models.
What are the long-term risks associated with relying on a single provider for C-130J maintenance and training, particularly regarding technological obsolescence and price escalation?
Long-term reliance on a single provider like Lockheed Martin carries risks of price escalation as competition is limited. Technological obsolescence is also a concern, as the provider may prioritize upgrades for newer platforms. The Air Force needs robust contract management and strategic planning to mitigate these risks, potentially through phased technology insertion or exploring alternative support options in the future.
How effectively does the current training system prepare aircrews for diverse operational environments and evolving mission requirements for the C-130J?
The effectiveness of the training system is crucial for mission success. While the contract ensures continuity, evaluating its alignment with current and future operational demands requires regular assessment of training outcomes and aircrew feedback. Periodic reviews of the curriculum and simulation capabilities against evolving threats and mission profiles are necessary to ensure optimal preparedness.
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: $32,654,149
Exercised Options: $30,474,631
Current Obligation: $30,474,631
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $18,698,784
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: 2023-09-30
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-08-28
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