DoD awards $46.6M for C-130J spares and support equipment to Lockheed Martin
Contract Overview
Contract Amount: $46,617,762 ($46.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2029-02-28
Contract Duration: 1,615 days
Daily Burn Rate: $28.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IN ACCORDANCE WITH ATTACHMENT 1-SOW, THIS REQUIREMENT ESTABLISHES A PRE-PRICED CATALOG TO PROCURE INITIAL SPARES (IS) AND PECULIAR SUPPORT EQUIPMENT (PSE) FOR C-130J AIRCRAFT AS A DO UNDER THE CADDIE CONTRACT.
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $46.6 million to LOCKHEED MARTIN CORP for work described as: IN ACCORDANCE WITH ATTACHMENT 1-SOW, THIS REQUIREMENT ESTABLISHES A PRE-PRICED CATALOG TO PROCURE INITIAL SPARES (IS) AND PECULIAR SUPPORT EQUIPMENT (PSE) FOR C-130J AIRCRAFT AS A DO UNDER THE CADDIE CONTRACT. Key points: 1. Procurement of initial spares and support equipment for C-130J aircraft. 2. Contract awarded as a Delivery Order under the CADDIE contract. 3. Sole-source award to Lockheed Martin Corp, the original manufacturer. 4. Firm Fixed Price contract type with a duration of over 1600 days.
Value Assessment
Rating: questionable
The contract is a Firm Fixed Price delivery order under an existing contract. Without access to the pre-priced catalog and the CADDIE contract details, it's difficult to assess pricing against market benchmarks. However, sole-source awards often carry a risk of higher pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This requirement was not competed and was awarded sole-source to Lockheed Martin Corp. This limits price discovery and competition, potentially leading to less favorable pricing for the government.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed procurement.
Public Impact
Ensures continued operational readiness of the C-130J fleet. Supports critical logistics and transport capabilities for the Air Force. Potential for extended sustainment costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for overpricing due to lack of competitive bidding.
- Long contract duration may not reflect evolving market prices.
Positive Signals
- Ensures availability of critical spares for C-130J aircraft.
- Leverages existing CADDIE contract vehicle for efficiency.
Sector Analysis
This procurement falls under the Aircraft Manufacturing sector, specifically for specialized support equipment and initial spares for a major military aircraft platform. Spending in this area is critical for maintaining defense readiness and operational capabilities.
Small Business Impact
This award was not competed and does not indicate any specific set-aside for small businesses. The prime contractor is Lockheed Martin Corp, a large aerospace company.
Oversight & Accountability
The award is a delivery order under an existing contract (CADDIE). Oversight would focus on the terms of the original CADDIE contract and the fairness of the pricing within the pre-priced catalog for this specific order.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Limited transparency in pricing
- Long-term vendor dependency
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 $46.6 million to LOCKHEED MARTIN CORP. IN ACCORDANCE WITH ATTACHMENT 1-SOW, THIS REQUIREMENT ESTABLISHES A PRE-PRICED CATALOG TO PROCURE INITIAL SPARES (IS) AND PECULIAR SUPPORT EQUIPMENT (PSE) FOR C-130J AIRCRAFT AS A DO UNDER THE CADDIE CONTRACT.
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 $46.6 million.
What is the period of performance?
Start: 2024-09-27. End: 2029-02-28.
What is the basis for the pre-priced catalog and how does it ensure fair and reasonable pricing without competition?
The basis for the pre-priced catalog typically involves historical pricing data, established cost models, and potentially negotiation with the sole-source provider. Ensuring fair and reasonable pricing without competition relies heavily on robust government cost analysis, market research on similar components, and strong negotiation tactics. The government must validate that the catalog prices reflect current market conditions and are not inflated due to the lack of competitive pressure.
What are the long-term risks associated with sole-sourcing aircraft spares and support equipment?
Long-term risks include escalating costs due to a lack of competitive pressure, potential vendor lock-in, and reduced innovation. The government may become overly reliant on a single supplier, making it difficult to switch providers or negotiate favorable terms in the future. This can also impact the ability to adapt to technological advancements or find more cost-effective solutions as the aircraft ages.
How does this procurement contribute to the overall effectiveness and readiness of the C-130J fleet?
This procurement is crucial for maintaining the operational effectiveness and readiness of the C-130J fleet by ensuring the availability of essential initial spares and peculiar support equipment. Without these components, aircraft downtime could increase, impacting mission capabilities, training schedules, and overall operational readiness. Timely access to these parts is vital for sustainment and mission accomplishment.
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: $46,617,762
Exercised Options: $46,617,762
Current Obligation: $46,617,762
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: 2024-09-27
Current End Date: 2029-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2025-03-25
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