DoD Awards $38.5M for C-130J Maintenance and Training to Lockheed Martin
Contract Overview
Contract Amount: $38,502,213 ($38.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2027-03-31
Contract Duration: 912 days
Daily Burn Rate: $42.2K/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 $38.5 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 aircrew training. 2. The contract value is $38.5 million over approximately 3 years. 3. Full and open competition was utilized, suggesting potential for competitive pricing. 4. The sector is primarily Defense, with a focus on aircraft parts and training systems.
Value Assessment
Rating: good
The contract value of $38.5 million for a 3-year period appears reasonable for specialized aircraft maintenance and training. Benchmarking against similar complex defense systems 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, which typically allows for a broad range of bidders and can lead to better price discovery. The specific impact on price depends on the number and competitiveness of the bids received.
Taxpayer Impact: Taxpayer funds are being used for essential military readiness and training, with the expectation that competitive bidding will ensure value for money.
Public Impact
Ensures continued operational readiness of the C-130J Super Hercules fleet. Supports critical aircrew training, maintaining pilot and crew proficiency. Contributes to the sustainment of a key military transport aircraft. Potential for job creation within Lockheed Martin and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Reliance on a single contractor for critical maintenance and training.
Positive Signals
- Awarded under full and open competition.
- Supports a vital military asset.
- Long-term contract provides stability for operations.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft parts and training systems. Spending in this area is crucial for maintaining military aviation capabilities and often involves high-value, specialized contracts.
Small Business Impact
While the prime contractor is Lockheed Martin, a large aerospace company, there is potential for small businesses to participate as subcontractors in the supply chain for parts and services.
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 scope will be essential.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole reliance on incumbent contractor.
- Potential for scope creep.
- Long-term sustainment dependency.
- Cybersecurity risks associated with training systems.
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 $38.5 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 $38.5 million.
What is the period of performance?
Start: 2024-09-30. End: 2027-03-31.
What is the historical cost performance of C-130J maintenance and training contracts awarded to Lockheed Martin?
Analyzing historical cost performance for similar C-130J maintenance and training contracts awarded to Lockheed Martin is crucial. This involves reviewing past contract modifications, cost overruns, and the effectiveness of the firm-fixed-price structure in controlling expenses. Understanding trends can help predict future cost trends and identify potential areas for improved efficiency or negotiation.
How does the pricing of this contract compare to industry benchmarks for similar aircraft maintenance and training services?
Benchmarking this contract's pricing against industry standards for comparable aircraft maintenance and aircrew training systems is vital. This comparison should consider factors like aircraft type, age, complexity of systems, and the scope of services. A favorable comparison would indicate good value for taxpayer money, while a significantly higher price might warrant further investigation into the reasons for the discrepancy.
What are the key performance indicators (KPIs) used to measure the effectiveness of this contract?
Key performance indicators for this contract should focus on ensuring the operational readiness of the C-130J fleet and the proficiency of its aircrews. This could include metrics such as aircraft availability rates, mission capable rates, training completion rates, simulation fidelity, and adherence to safety standards. Effective monitoring of these KPIs will confirm that the contract is delivering the intended value and supporting military objectives.
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: $38,502,213
Exercised Options: $38,502,213
Current Obligation: $38,502,213
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $23,068,402
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: 2024-09-30
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-03-18
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