DoD Awards $23.1M for MC-130J LAIRCM Installations to Lockheed Martin
Contract Overview
Contract Amount: $23,142,573 ($23.1M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2017-10-11
End Date: 2021-04-30
Contract Duration: 1,297 days
Daily Burn Rate: $17.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MC-130J INCREMENT 1-2 LAIRCM INSTALLATIONS
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to LOCKHEED MARTIN CORP for work described as: MC-130J INCREMENT 1-2 LAIRCM INSTALLATIONS Key points: 1. Significant contract value for aircraft modifications. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Potential for cost overruns given fixed-price contract type and duration. 4. Focus on defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: fair
The contract value of $23.1M for LAIRCM installations appears reasonable for specialized aircraft modifications. However, without more detailed cost breakdowns or benchmarks for similar systems, a definitive assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competitive bidding. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award limits competitive pressure, potentially resulting in less favorable pricing for the government and taxpayers.
Public Impact
Enhances survivability of MC-130J aircraft against missile threats. Supports critical military operations and personnel safety. Investment in advanced defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost creep
Positive Signals
- Critical defense capability
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a focus on large, established defense contractors for this specialized work.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, implying a level of oversight. However, the sole-source nature warrants scrutiny to ensure fair pricing and effective execution.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for higher costs due to lack of competition.
- Contract duration is lengthy, increasing risk.
- No small business participation noted.
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 $23.1 million to LOCKHEED MARTIN CORP. MC-130J INCREMENT 1-2 LAIRCM INSTALLATIONS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $23.1 million.
What is the period of performance?
Start: 2017-10-11. End: 2021-04-30.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Agencies must document these justifications thoroughly. Alternative competitive strategies, such as phased procurements or sole-source justifications with limited competition, might have been explored but were likely deemed unsuitable or less efficient for this specific acquisition.
How does the per-unit cost of these LAIRCM installations compare to industry benchmarks or previous installations?
Benchmarking the per-unit cost is challenging without access to detailed cost data and specific system configurations. However, given the sole-source nature and the complexity of integrating advanced systems like LAIRCM onto aircraft, costs could be higher than if procured competitively. A thorough cost analysis by the agency would be necessary to validate reasonableness.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?
Key performance indicators for such a contract would likely include on-time delivery of installations, adherence to technical specifications, system functionality and reliability post-installation, and budget compliance. The Defense Contract Management Agency would typically monitor these KPIs through regular reporting, inspections, and performance reviews to ensure the contractor meets contractual obligations.
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: $38,109,628
Exercised Options: $23,142,573
Current Obligation: $23,142,573
Actual Outlays: $4,260,687
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: 2017-10-11
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2025-07-10
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