DoD Awards $35.6M to Lockheed Martin for C-130J Aircraft Kits, Raising Concerns Over Competition
Contract Overview
Contract Amount: $35,579,741 ($35.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2023-09-15
End Date: 2029-06-15
Contract Duration: 2,100 days
Daily Burn Rate: $16.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-130J/COMBINED AIRCRAFT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE)/LAIRCM BLOCK 30 GROUP "A" KITS
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $35.6 million to LOCKHEED MARTIN CORP for work described as: C-130J/COMBINED AIRCRAFT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE)/LAIRCM BLOCK 30 GROUP "A" KITS Key points: 1. Significant award to a single large defense contractor. 2. Focus on aircraft manufacturing, a critical but often consolidated sector. 3. Potential for cost overruns due to lack of competitive bidding. 4. Long contract duration suggests ongoing need and potential for future awards.
Value Assessment
Rating: questionable
The award amount of $35.6 million for C-130J aircraft kits appears substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts or market rates for aircraft components and integration services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin Corp, was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these aircraft kits, as there was no pressure from competing bids to drive down the price.
Public Impact
Impacts the operational readiness of the C-130J fleet, a vital transport aircraft for the Air Force. Directly benefits Lockheed Martin Corp, a major defense contractor. Potential for follow-on contracts if the 'A' kits are part of a larger upgrade or sustainment program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential aircraft component
- Supports C-130J fleet readiness
Sector Analysis
This award falls within the Aircraft Manufacturing sector, specifically for components and integration related to the C-130J aircraft. Spending in this area is critical for national defense but often dominated by a few large prime contractors.
Small Business Impact
The contract was awarded to Lockheed Martin Corp, a large prime contractor, and there is no indication of subcontracting opportunities for small businesses within the provided data. This suggests limited direct benefit to the small business sector from this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable, and to explore opportunities for competition in future procurements of similar items.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- Long contract duration increases exposure to potential cost growth.
- Lack of transparency regarding specific technical requirements and justification for sole-sourcing.
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 $35.6 million to LOCKHEED MARTIN CORP. C-130J/COMBINED AIRCRAFT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE)/LAIRCM BLOCK 30 GROUP "A" KITS
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 $35.6 million.
What is the period of performance?
Start: 2023-09-15. End: 2029-06-15.
What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. For this CADDIE/LAIRCM Block 30 Group 'A' Kits contract, the Department of Defense would need to provide specific documentation outlining why Lockheed Martin was the only viable source. Without this justification, the lack of competition raises concerns about potential overpricing and missed opportunities for cost savings through a competitive bidding process.
How does the $35.6 million cost compare to the estimated value of similar aircraft component integration contracts, and what is the potential risk of cost overruns?
Benchmarking the $35.6 million against similar contracts is challenging without access to a broader dataset of C-130J component integration awards, especially sole-source ones. The primary risk of cost overruns in sole-source contracts stems from the absence of competitive pressure. Lockheed Martin may have less incentive to control costs tightly, potentially leading to expenditures exceeding initial estimates if not rigorously monitored by the contracting agency.
What is the long-term effectiveness and necessity of these CADDIE/LAIRCM Block 30 Group 'A' Kits for the C-130J aircraft, and how does this award contribute to overall mission readiness?
The effectiveness and necessity of these kits are tied to the specific avionics and electronic warfare upgrades they provide for the C-130J. Assuming these kits are crucial for maintaining the aircraft's technological relevance and survivability, this award is essential for ensuring the C-130J fleet remains operationally effective. The long duration (ending 2029) suggests these are not one-off procurements but part of an ongoing sustainment or modernization effort critical for mission readiness.
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: FIRM FIXED PRICE (J)
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: $70,008,368
Exercised Options: $35,579,741
Current Obligation: $35,579,741
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: 2023-09-15
Current End Date: 2029-06-15
Potential End Date: 2029-06-15 00:00:00
Last Modified: 2025-07-23
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