DoD's $646M C-130J FY21 Congressional Add for Lockheed Martin Faces Scrutiny
Contract Overview
Contract Amount: $646,493,418 ($646.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2021-02-26
End Date: 2025-12-30
Contract Duration: 1,768 days
Daily Burn Rate: $365.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: C-130J FY21 CONGRESSIONAL ADDS
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $646.5 million to LOCKHEED MARTIN CORP for work described as: C-130J FY21 CONGRESSIONAL ADDS Key points: 1. Significant funding allocated to a single contractor, Lockheed Martin. 2. Lack of competition raises concerns about price discovery and value. 3. Potential for taxpayer funds to be used inefficiently due to non-competitive award. 4. The aircraft manufacturing sector is dominated by a few large players.
Value Assessment
Rating: questionable
The $646 million congressional add for C-130J aircraft was not competed. Without a competitive bidding process, it is difficult to assess if this price represents fair market value compared to similar aircraft procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded via a sole-source, non-competitive process, likely driven by a congressional add. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for other manufacturers to bid.
Taxpayer Impact: The lack of competition for this substantial funding could result in taxpayers paying a premium for the C-130J aircraft, as market forces were not leveraged to secure the best possible price.
Public Impact
Taxpayers may be overpaying for C-130J aircraft due to the absence of competition. The congressional add bypasses standard procurement processes, potentially reducing oversight. This funding decision could set a precedent for future non-competitive awards in defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Lack of price justification
- Congressional add bypassing normal process
Positive Signals
- Supports critical military aircraft platform
- Funding allocated to a domestic manufacturer
Sector Analysis
The defense sector, particularly aircraft manufacturing, often involves large, complex contracts. While Lockheed Martin is a primary provider of the C-130J, the lack of competition for this specific add warrants scrutiny regarding cost-effectiveness.
Small Business Impact
This award went to a large prime contractor, Lockheed Martin. There is no indication of subcontracting opportunities for small businesses within the provided data for this specific congressional add.
Oversight & Accountability
Congressional adds can sometimes bypass standard oversight mechanisms. The non-competitive nature of this award necessitates careful review by the Department of Defense and relevant oversight bodies to ensure fiscal responsibility.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- Congressional influence on procurement
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $646.5 million to LOCKHEED MARTIN CORP. C-130J FY21 CONGRESSIONAL ADDS
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 $646.5 million.
What is the period of performance?
Start: 2021-02-26. End: 2025-12-30.
What is the justification for this congressional add bypassing the standard competitive procurement process for C-130J aircraft?
Congressional adds are directives from Congress to procure specific items or services, often outside the normal budget and acquisition planning. The justification typically relates to perceived urgent needs or specific program priorities identified by congressional members, bypassing the standard competitive process to ensure rapid or specific acquisition.
How does the fixed-price incentive contract type mitigate risk in a non-competed sole-source award?
A Fixed Price Incentive (FPI) contract aims to share cost risks between the government and contractor. While it sets target costs and profits, and adjusts them based on actual costs, the lack of competition means the initial target cost may not be as optimized as it would be in a competitive environment, potentially limiting its effectiveness in controlling overall spending.
What is the potential impact on future defense spending if congressional adds are frequently used for non-competitive awards?
Frequent use of congressional adds for non-competitive awards could lead to inflated defense budgets as market competition is bypassed. It may also reduce the incentive for contractors to propose competitive pricing and could erode the effectiveness of established procurement oversight and accountability processes designed to ensure best value for taxpayer dollars.
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: FIXED PRICE INCENTIVE (L)
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: $646,493,418
Exercised Options: $646,493,418
Current Obligation: $646,493,418
Subaward Activity
Number of Subawards: 983
Total Subaward Amount: $215,963,015
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862520D3000
IDV Type: IDC
Timeline
Start Date: 2021-02-26
Current End Date: 2025-12-30
Potential End Date: 2025-12-30 00:00:00
Last Modified: 2025-12-04
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