DoD Awards $29.7M for C-130J ADS-B OUT Production to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $29,738,766 ($29.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2017-12-13
End Date: 2023-08-25
Contract Duration: 2,081 days
Daily Burn Rate: $14.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACAT III C-130J FYOC ADS-B OUT PRODUCTION
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $29.7 million to LOCKHEED MARTIN CORP for work described as: ACAT III C-130J FYOC ADS-B OUT PRODUCTION Key points: 1. Significant award to a single, established contractor for critical aircraft modification. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract spans over five years, indicating a long-term need. 4. Focus on aircraft manufacturing highlights a key defense sector.
Value Assessment
Rating: fair
The award amount of $29.7M for a C-130J modification is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar avionics upgrades.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This limits the government's ability to explore alternative solutions or secure the best possible pricing through market forces.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this aircraft modification, as the government did not leverage market dynamics to drive down costs.
Public Impact
Ensures continued operational capability for C-130J aircraft through mandatory ADS-B OUT installation. Supports the modernization of the Air Force's tactical airlift fleet. Impacts the aerospace and defense industry, specifically Lockheed Martin's supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration without re-evaluation
Positive Signals
- Addresses a critical safety and regulatory requirement (ADS-B OUT)
- Utilizes a known, experienced contractor for a complex system
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and modification. Spending benchmarks for similar avionics upgrades can vary widely based on complexity and aircraft type, but sole-source awards often exceed competitive pricing.
Small Business Impact
The contract was awarded to Lockheed Martin, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable, and that future requirements are competed where feasible.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of market pressure.
- Long-term reliance on one contractor.
- Lack of transparency in price justification.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.7 million to LOCKHEED MARTIN CORP. ACAT III C-130J FYOC ADS-B OUT PRODUCTION
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $29.7 million.
What is the period of performance?
Start: 2017-12-13. End: 2023-08-25.
What was the justification for awarding this contract sole-source instead of competing it?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of other sources. For this specific contract, the government likely cited Lockheed Martin's proprietary knowledge of the C-130J platform and the specific ADS-B OUT modification requirements as reasons for not competing the award.
How does the $29.7M award compare to industry benchmarks for similar avionics upgrades on large aircraft?
Direct comparison is challenging without detailed specifications. However, sole-source awards for complex avionics integration on platforms like the C-130J often carry a premium. Industry benchmarks for competitive bids on similar upgrades might reveal a lower cost, highlighting the potential financial impact of the non-competitive nature of this award.
What is the long-term risk associated with relying on a single contractor for critical aircraft modifications like ADS-B OUT?
The long-term risk includes potential price escalation in future orders, reduced innovation due to lack of competitive pressure, and vendor lock-in. If Lockheed Martin were to face production issues or significantly increase prices, the Air Force would have limited alternatives for maintaining its C-130J fleet's compliance and operational readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
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: $29,738,766
Exercised Options: $29,738,766
Current Obligation: $29,738,766
Actual Outlays: $91,386
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862516D6458
IDV Type: IDC
Timeline
Start Date: 2017-12-13
Current End Date: 2023-08-25
Potential End Date: 2023-08-25 00:00:00
Last Modified: 2025-06-17
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