DoD Awards $1.54B C-130J Contract to Lockheed Martin for Aircraft Manufacturing
Contract Overview
Contract Amount: $15,357,043 ($15.4M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2022-11-30
End Date: 2025-12-31
Contract Duration: 1,127 days
Daily Burn Rate: $13.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-130J / USMC & USCG CMU1C
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $15.4 million to LOCKHEED MARTIN CORP for work described as: C-130J / USMC & USCG CMU1C Key points: 1. Significant contract value highlights the importance of C-130J aircraft to USMC and USCG. 2. Sole-source award to Lockheed Martin raises questions about competition and potential price discovery. 3. Long contract duration (2025) suggests ongoing sustainment and upgrade needs. 4. Aircraft manufacturing sector is critical for defense readiness and technological advancement.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $1.54 billion price is optimal compared to similar aircraft manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Ensures continued operational capability for critical C-130J aircraft used by the USMC and USCG. Supports jobs in the aerospace manufacturing sector, particularly in Georgia. Potential for cost overruns due to sole-source award and cost-plus contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Ensures availability of critical aircraft
- Supports established defense contractor
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key component of the broader aerospace and defense industry. Spending in this area is driven by national security needs and technological upgrades for military aviation assets.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses within this contract. As a sole-source award to a large prime contractor, opportunities for small business subcontracting may be limited or not explicitly detailed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost control and adherence to contract terms. Robust accountability mechanisms are needed to justify the absence of competition and the chosen contract type.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type may increase costs.
- Lack of transparency on pricing justification.
- Long contract duration could lead to cost escalation.
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 $15.4 million to LOCKHEED MARTIN CORP. C-130J / USMC & USCG CMU1C
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 $15.4 million.
What is the period of performance?
Start: 2022-11-30. End: 2025-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without competitive bidding, the Department of Defense must conduct a thorough price analysis, comparing proposed costs to historical data, other government contracts, or commercial prices to ensure the pricing is fair and reasonable. This process is crucial for taxpayer protection when competition is absent.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft manufacturing, especially in a sole-source scenario?
CPFF contracts shift some cost risk to the government, as the contractor is reimbursed for allowable costs plus a fixed fee. In a sole-source scenario, this risk is amplified because the contractor faces less pressure to control costs. Potential risks include cost overruns, scope creep, and reduced incentive for efficiency, ultimately leading to higher overall program costs for the taxpayer.
How does this contract contribute to the overall readiness and modernization goals for the USMC and USCG C-130J fleets?
This contract is essential for maintaining and potentially upgrading the C-130J Super Hercules aircraft, which are vital multi-mission platforms for both the US Marine Corps and US Coast Guard. It ensures the continued operational availability of these aircraft, supporting critical missions ranging from troop transport and cargo delivery to search and rescue and maritime patrol, thereby directly contributing to the readiness and effectiveness of these services.
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: COST PLUS FIXED FEE (U)
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: $15,357,043
Exercised Options: $15,357,043
Current Obligation: $15,357,043
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $229,017
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: 2022-11-30
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-10-28
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)