DoD awards $187M to Lockheed Martin for ANG Weapons System Trainers, extending support through 2027

Contract Overview

Contract Amount: $18,700,228 ($18.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-05-31

End Date: 2027-09-30

Contract Duration: 852 days

Daily Burn Rate: $21.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ESTABLISH A NEW DELIVERY ORDER (DO) TO MODIFY ANG WEAPONS SYSTEM TRAINERS (WSTS) #10

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32825

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to LOCKHEED MARTIN CORPORATION for work described as: ESTABLISH A NEW DELIVERY ORDER (DO) TO MODIFY ANG WEAPONS SYSTEM TRAINERS (WSTS) #10 Key points: 1. Contract value of $187 million represents a significant investment in maintaining critical training capabilities. 2. The award to a single incumbent contractor suggests a focus on continuity and specialized expertise. 3. Long-term contract duration (852 days) indicates a need for sustained support and potential for future modifications. 4. Fixed-price contract type aims to control costs and transfer some risk to the contractor. 5. Geographic focus on Florida highlights regional operational importance for Air National Guard training. 6. The contract's scope is tied to specialized aircraft parts and auxiliary equipment manufacturing, indicating a niche requirement.

Value Assessment

Rating: good

The contract value of $187 million for modifying and sustaining ANG Weapons System Trainers appears reasonable given the specialized nature of the equipment and the long-term support required. Benchmarking against similar complex training system sustainment contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, though the specific profit margins are not detailed here. The contract's duration of 852 days (approximately 2.3 years) aligns with typical sustainment cycles for advanced training systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of competition, even if ultimately awarded to a single entity, generally drives better pricing and terms for the government. The specific number of bidders is not provided, but the 'full and open' designation is a positive indicator for price discovery and market responsiveness.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that encourages lower prices and better service offerings from contractors.

Public Impact

The primary beneficiaries are the Air National Guard (ANG) units requiring advanced weapons system training. The contract delivers essential sustainment and modification services for the Weapons System Trainers (WSTs). The geographic impact is concentrated in Florida, where the training facilities are likely located. This contract supports specialized technical roles within the aerospace and defense industry, potentially impacting a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during modification.
Dependence on a single contractor for critical training system sustainment could limit future flexibility.
Risk of obsolescence if training systems are not updated in line with evolving aircraft technology.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an incumbent contractor likely ensures continuity of operations and minimal disruption.
Long-term contract duration allows for planned sustainment and upgrades.
Full and open competition suggests a robust bidding process that should yield competitive pricing.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on training and simulation systems. The market for such specialized equipment is characterized by high barriers to entry due to technological complexity and stringent performance requirements. Spending in this area is crucial for maintaining pilot proficiency and mission readiness. Comparable spending benchmarks would involve analyzing other contracts for advanced flight simulators and training device sustainment across military branches.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Lockheed Martin Corporation is a large prime contractor. While there is no direct small business set-aside, the prime contractor may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified services and modifications. Transparency is facilitated through contract award announcements and public databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Training Systems
Weapons System Simulators
Aerospace Training Equipment
Defense Contractor Sustainment
Military Simulation and Training

Risk Flags

Long-term sustainment reliance on a single vendor.
Potential for scope creep during modification phases.
Aging technology in training systems requiring significant upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to LOCKHEED MARTIN CORPORATION. ESTABLISH A NEW DELIVERY ORDER (DO) TO MODIFY ANG WEAPONS SYSTEM TRAINERS (WSTS) #10

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 $18.7 million.

What is the period of performance?

Start: 2025-05-31. End: 2027-09-30.

What is Lockheed Martin Corporation's track record with similar Weapons System Trainer (WST) contracts for the Air National Guard or other military branches?

Lockheed Martin Corporation has a long and extensive history of developing, manufacturing, and sustaining complex defense systems, including training and simulation platforms. They are a primary contractor for numerous advanced aircraft programs and their associated training devices. For WSTs specifically, Lockheed Martin has been involved in providing and maintaining simulators for various platforms like the F-16, F-35, and C-130. Their track record typically involves delivering sophisticated simulation capabilities, integrating hardware and software, and providing long-term sustainment services. Past performance reviews and contract histories with agencies like the Air Force, Navy, and Army would detail their success rates, on-time delivery performance, and ability to meet technical specifications for similar training systems. This specific contract builds upon that established expertise in supporting critical training infrastructure.

How does the $187 million contract value compare to previous sustainment or modification contracts for ANG WSTs?

To accurately compare this $187 million contract value, historical data on previous sustainment and modification contracts for ANG WSTs would be required. This includes examining prior delivery orders or contract modifications for the same WSTs (identified as #1) and potentially similar trainer systems used by the ANG. Factors such as the scope of work (e.g., software updates, hardware replacements, extended service life), the duration of the contract, and the inflation rate at the time of previous awards would need to be considered. Without specific historical figures for these ANG WSTs, a direct comparison is difficult. However, the value suggests a substantial investment, potentially reflecting increased complexity, aging systems requiring significant refurbishment, or expanded training requirements.

What are the key performance risks associated with modifying and sustaining advanced weapons system trainers, and how are they mitigated in this contract?

Key performance risks in modifying and sustaining advanced WSTs include technological obsolescence, integration challenges between new and existing systems, software complexity, and potential hardware failures. Obsolescence is a risk as aircraft technology evolves rapidly, potentially making trainers outdated. Integration risks arise when incorporating new modifications or upgrades into complex existing systems. Software, often the backbone of modern trainers, can be prone to bugs or compatibility issues. Hardware failures can disrupt training schedules. This contract attempts to mitigate these risks through a firm fixed-price structure, which incentivizes the contractor (Lockheed Martin) to manage costs and performance efficiently. The long duration (852 days) allows for planned sustainment and phased modifications, reducing the impact of sudden failures. Furthermore, the award to an incumbent contractor suggests familiarity with the system, potentially lowering integration risks.

What is the expected impact of this contract on the operational readiness and training effectiveness of the Air National Guard?

This contract is expected to significantly enhance the operational readiness and training effectiveness of the Air National Guard by ensuring their Weapons System Trainers (WSTs) are up-to-date, functional, and capable of simulating realistic combat scenarios. Modernized trainers allow pilots and aircrews to practice complex maneuvers, emergency procedures, and tactical employment of weapons systems in a safe and cost-effective environment. By sustaining and modifying these trainers, the ANG can maintain proficiency on current and future threats, reducing the need for expensive live-fly training missions. This directly translates to better prepared aircrews, improved mission success rates, and enhanced overall combat capability for the ANG units utilizing these systems.

How has federal spending on aircraft parts and auxiliary equipment manufacturing (NAICS 336413) trended over the past five years, and where does this contract fit within that trend?

Federal spending within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336413) has generally remained robust, driven by the ongoing modernization and sustainment needs of the U.S. military. Over the past five years, this sector has seen consistent demand for components, sub-assemblies, and specialized equipment related to aircraft operation and maintenance. This $187 million contract for WST modification and sustainment fits squarely within this trend, representing a significant investment in the support infrastructure for training aircraft. While specific year-over-year spending figures for NAICS 336413 would require detailed analysis of federal procurement data, contracts of this magnitude for specialized training systems are typical within the defense budget allocated to aviation readiness and technological advancement.

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: $18,700,228

Exercised Options: $18,700,228

Current Obligation: $18,700,228

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