DoD Awards $133.5M C-130J FMS Contract to Lockheed Martin for Australia
Contract Overview
Contract Amount: $133,514,477 ($133.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2023-11-15
End Date: 2028-12-31
Contract Duration: 1,873 days
Daily Burn Rate: $71.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: C-130J/COMBINED AIRCRAT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE) FMS AUSTRALIA C-130J
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $133.5 million to LOCKHEED MARTIN CORP for work described as: C-130J/COMBINED AIRCRAT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE) FMS AUSTRALIA C-130J Key points: 1. This contract represents a significant foreign military sale for C-130J aircraft components and integration. 2. Lockheed Martin is the sole provider of C-130J aircraft, limiting competition. 3. The fixed-price incentive contract structure aims to balance cost and performance. 4. The primary sector is Defense, specifically aircraft manufacturing.
Value Assessment
Rating: good
The contract value of $133.5M for C-130J related work appears reasonable given the specialized nature of the aircraft and Lockheed Martin's sole-source position. Benchmarking is difficult without specific component breakdowns, but it aligns with typical FMS aircraft sustainment and upgrade costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, as Lockheed Martin is the sole manufacturer of the C-130J aircraft. This limits price discovery and negotiation leverage for the government, although the fixed-price incentive (FPI) structure provides some cost control.
Taxpayer Impact: Taxpayer impact is indirect, as this is a foreign military sale. The US government procures the assets and then sells them to Australia, with potential for US industrial base support.
Public Impact
Enhances Australia's airlift capabilities with advanced C-130J aircraft. Supports the US defense industrial base and Lockheed Martin's production line. Strengthens US-Australia military interoperability and strategic partnership. Ensures continued availability of critical spare parts and integration services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source nature limits competitive pricing.
- Potential for cost overruns with FPI contract if not managed closely.
- Dependence on a single supplier for critical aircraft.
Positive Signals
- Strengthens alliance with Australia.
- Supports US aerospace industry.
- Provides advanced military capabilities to a key partner.
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending benchmarks for C-130J foreign military sales vary widely based on configuration and quantity, but $133.5M for delivery, development, integration, and engineering is within the expected range for such specialized military hardware.
Small Business Impact
This contract is awarded directly to Lockheed Martin, a large prime contractor. There is no explicit indication of small business participation in the provided data, which is common for sole-source, high-value defense procurements where the prime contractor manages the entire supply chain.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the sole-source nature and FPI contract type, robust oversight will be crucial to ensure cost control and adherence to delivery schedules and performance specifications.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost growth in FPI contracts
- Dependence on a single supplier
- Foreign Military Sale complexity
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 $133.5 million to LOCKHEED MARTIN CORP. C-130J/COMBINED AIRCRAT DELIVERY DEVELOPMENT INTEGRATION AND ENGINEERING (CADDIE) FMS AUSTRALIA C-130J
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 $133.5 million.
What is the period of performance?
Start: 2023-11-15. End: 2028-12-31.
What is the specific breakdown of costs for delivery, development, integration, and engineering within this $133.5M contract?
The provided data does not detail the cost breakdown for each element (delivery, development, integration, engineering). A more granular analysis would require access to the contract's detailed schedule of prices and CLINs (Contract Line Item Numbers). Understanding this breakdown is crucial for assessing the value and efficiency of each component of the overall award.
How will the Department of Defense ensure fair pricing and prevent potential cost overruns given the sole-source nature of this C-130J contract?
The Department of Defense will rely on the Fixed Price Incentive (FPI) contract structure, which includes target costs, target profits, and ceiling prices. Robust program management, regular performance reviews, and strict adherence to the contract's cost-sharing and incentive clauses are essential. Independent cost estimates and market research, where possible, can also inform negotiation and oversight.
What are the long-term implications for US-Australia interoperability and defense readiness resulting from this C-130J acquisition?
This acquisition significantly enhances Australia's tactical airlift capabilities, improving its ability to conduct joint operations with US forces and other allies. It ensures greater interoperability in terms of communication, navigation, and operational procedures, bolstering regional security and enabling more effective responses to shared challenges. Continued sustainment and potential future upgrades will be key.
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: $685,999,199
Exercised Options: $685,999,199
Current Obligation: $133,514,477
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: 2023-11-15
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-04-02
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