DoD's $70.6M C-130J Mission Computer Software Upgrade Awarded to Lockheed Martin
Contract Overview
Contract Amount: $70,586,574 ($70.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2025-10-31
End Date: 2025-10-31
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-130J / FY22 STAR XIII MISSION COMPUTER SOFTWARE UPGRADE
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $70.6 million to LOCKHEED MARTIN CORP for work described as: C-130J / FY22 STAR XIII MISSION COMPUTER SOFTWARE UPGRADE Key points: 1. Significant investment in critical aircraft software. 2. Sole-source award to incumbent contractor raises competition concerns. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Aircraft manufacturing sector sees continued high-value defense contracts.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which offers less price certainty than fixed-price contracts. Benchmarking against similar software upgrade contracts is difficult without more detailed cost breakdowns.
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 potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for this software upgrade.
Public Impact
Ensures continued operational readiness for the C-130J Super Hercules fleet. Supports advanced mission capabilities through software enhancements. Potential impact on future modernization efforts if costs escalate.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract
- Lack of competition
Positive Signals
- Maintains critical aircraft functionality
- Supports ongoing Air Force operations
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically for avionics and software upgrades. Spending in this area is crucial for maintaining the technological edge of military aviation assets.
Small Business Impact
The awardee is Lockheed Martin, a large prime contractor. There is no indication of small business participation in this specific contract action.
Oversight & Accountability
As a sole-source award, oversight will be critical to ensure the contractor is performing efficiently and costs are managed effectively under the Cost Plus Fixed Fee structure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Reliance on a single vendor
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 $70.6 million to LOCKHEED MARTIN CORP. C-130J / FY22 STAR XIII MISSION COMPUTER SOFTWARE UPGRADE
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 $70.6 million.
What is the period of performance?
Start: 2025-10-31. End: 2025-10-31.
What is the projected return on investment for this software upgrade in terms of improved mission effectiveness or cost savings?
The return on investment is primarily measured by enhanced operational capabilities and extended service life of the C-130J fleet. Specific cost savings are not detailed, but improved software can lead to reduced maintenance, increased mission success rates, and potentially fewer flight hours needed for certain tasks, indirectly benefiting taxpayers.
What are the risks associated with a sole-source award for critical software maintenance?
The primary risks include inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. There's also a risk that the government may not be aware of or able to access more cost-effective solutions available elsewhere in the market.
How will the effectiveness of this software upgrade be measured and validated by the Department of Defense?
Effectiveness will likely be measured through operational testing, performance metrics related to mission success rates, system reliability, and feedback from C-130J aircrews and maintenance personnel. The Department of Defense will track key performance indicators to ensure the upgrade meets its intended objectives and enhances the aircraft's capabilities.
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: $70,586,574
Exercised Options: $70,586,574
Current Obligation: $70,586,574
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $38,885,905
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: 2025-10-31
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-10-14
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