DoD Awards $207M Lockheed Martin Contract for C-130J Aircraft Delivery Integration
Contract Overview
Contract Amount: $207,155,648 ($207.2M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2023-04-14
End Date: 2026-09-30
Contract Duration: 1,265 days
Daily Burn Rate: $163.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: C-130J COMBINED AIRCRAFT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE) EGYPT DELIVERY ORDER UCA
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $207.2 million to LOCKHEED MARTIN CORP for work described as: C-130J COMBINED AIRCRAFT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE) EGYPT DELIVERY ORDER UCA Key points: 1. Significant investment in C-130J aircraft capabilities. 2. Sole-source award to Lockheed Martin, raising competition concerns. 3. Potential for cost overruns given fixed-price incentive contract type. 4. Focus on aircraft manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $207.16 million for C-130J aircraft delivery integration appears substantial. Benchmarking against similar sole-source development and integration contracts for complex aircraft systems is difficult without more specific data on the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. The lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Enhances U.S. Air Force's C-130J fleet capabilities. Supports critical airlift and logistical operations. Potential impact on future defense procurement strategies. Ensures continued availability of specialized aircraft integration services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Fixed-price incentive contract type
- Lack of competition
Positive Signals
- Supports critical military aircraft
- Long-term program integration
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security, but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no information provided on subcontracting opportunities for small businesses within this specific delivery order.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Department of the Air Force should monitor performance closely to mitigate risks associated with non-competitive contracts.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Fixed-price incentive contract shifts cost risk to government.
- Lack of detailed scope of work for cost justification.
- Potential for contractor to leverage market dominance.
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 $207.2 million to LOCKHEED MARTIN CORP. C-130J COMBINED AIRCRAFT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE) EGYPT DELIVERY ORDER 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 $207.2 million.
What is the period of performance?
Start: 2023-04-14. End: 2026-09-30.
What specific integration and engineering tasks are included in this delivery order to justify the $207 million cost without competition?
The specific tasks are not detailed in the provided data. However, 'delivery integration and engineering' for a complex platform like the C-130J typically involves software integration, system testing, hardware modifications, and ensuring interoperability with existing or new mission equipment. The cost reflects the specialized expertise and long-term support required for such advanced aircraft modifications.
What are the primary risks associated with a sole-source, fixed-price incentive contract for aircraft development and integration?
The primary risks include potential cost overruns if development proves more complex than anticipated, as the contractor is incentivized to complete the work but the government bears a significant portion of the cost risk. A sole-source award also carries the risk of paying a premium due to the lack of competitive pressure to reduce prices.
How does this contract contribute to the overall effectiveness and readiness of the C-130J fleet?
This contract is crucial for ensuring the C-130J fleet remains operationally effective by integrating necessary upgrades, modifications, and engineering solutions. It directly supports the Air Force's ability to maintain and enhance the capabilities of these vital transport aircraft, ensuring readiness for diverse mission requirements.
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: $207,155,648
Exercised Options: $207,155,648
Current Obligation: $207,155,648
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: 2023-04-14
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-05-29
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