DoD awards $68.6M C-130J aircraft contract to Lockheed Martin, raising competition concerns
Contract Overview
Contract Amount: $68,642,805 ($68.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2027-07-31
End Date: 2027-07-31
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-130J / DMS B1 GROUPING UCA
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $68.6 million to LOCKHEED MARTIN CORP for work described as: C-130J / DMS B1 GROUPING UCA Key points: 1. Significant contract value for aircraft manufacturing. 2. Sole-source award to incumbent Lockheed Martin. 3. Potential for higher costs due to lack of competition. 4. Focus on sustainment and upgrades for a critical military asset.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar contracts for the C-130J.
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 increases costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft modifications and sustainment services.
Public Impact
Ensures continued operational readiness of the C-130J fleet. Supports a key defense contractor and its supply chain. Potential for extended reliance on a single vendor for future upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Maintains critical aircraft capability
- Supports established program of record
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending in this area is substantial, and competitive procurement is crucial for cost efficiency.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was a sole-source procurement from a large prime contractor.
Oversight & Accountability
Oversight is critical for cost-plus contracts to ensure funds are used efficiently and effectively. The Department of the Air Force must closely monitor expenditures and performance.
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 increases cost risk.
- Potential for contractor lock-in.
- Lack of transparency in pricing.
- No clear small business participation.
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 $68.6 million to LOCKHEED MARTIN CORP. C-130J / DMS B1 GROUPING UCA
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 $68.6 million.
What is the period of performance?
Start: 2027-07-31. End: 2027-07-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or the unavailability of other sources. Without a competitive process, it's essential for the agency to thoroughly document why competition was not feasible to ensure the best value was obtained for taxpayers.
How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded non-competitively?
Effective cost control requires robust government oversight, detailed performance metrics, and stringent review of contractor expenditures. Establishing clear milestones and incentives, along with regular audits, can help mitigate the risks associated with cost-plus contracts and ensure value.
What is the long-term strategy for C-130J sustainment and upgrades, and will future procurements be competed?
The long-term strategy should outline a plan for competitive procurements for future sustainment and upgrade requirements. Agencies should aim to foster competition over the lifecycle of major weapon systems to drive innovation and reduce costs, avoiding prolonged sole-source arrangements.
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: $68,642,805
Exercised Options: $68,642,805
Current Obligation: $68,642,805
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: 2027-07-31
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2024-06-26
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