DoD Awards $14.5M for AC/HC/MC-130J Software Sustainment to Lockheed Martin
Contract Overview
Contract Amount: $14,467,846 ($14.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2020-09-30
End Date: 2025-08-26
Contract Duration: 1,791 days
Daily Burn Rate: $8.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AC/HC/MC-130J SOFTWARE SUSTAINMENT
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to LOCKHEED MARTIN CORP for work described as: AC/HC/MC-130J SOFTWARE SUSTAINMENT Key points: 1. Significant contract value for specialized aircraft software. 2. Sole-source award to incumbent prime contractor. 3. Potential for cost overruns due to cost-plus contract type. 4. Sustainment of critical C-130J aircraft capabilities.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which offers less price certainty than fixed-price contracts. Benchmarking is difficult without specific task details, but the duration and value suggest a need for careful monitoring of costs.
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 leads to higher costs compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are being spent without competitive pressure, potentially increasing the overall cost of sustainment for this aircraft platform.
Public Impact
Ensures continued operational readiness of C-130J aircraft. Supports critical airlift and special operations missions. Impacts the sustainment budget for a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Sustainment of critical aircraft
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending on software sustainment for major platforms like the C-130J is common but requires oversight to ensure value.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is Lockheed Martin. There is no information on subcontracting opportunities for small businesses.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA). Oversight will be crucial to monitor costs under the CPFF structure and ensure performance meets requirements.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type increases cost risk.
- Potential for contractor inefficiencies.
- Lack of transparency in pricing without competition.
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 $14.5 million to LOCKHEED MARTIN CORP. AC/HC/MC-130J SOFTWARE SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.5 million.
What is the period of performance?
Start: 2020-09-30. End: 2025-08-26.
What is the projected cost growth potential under this CPFF contract, and what mechanisms are in place to control it?
The Cost Plus Fixed Fee (CPFF) structure inherently carries risk of cost growth, as the contractor is reimbursed for allowable costs plus a fixed fee. The government's oversight, through DCMA, is critical. Mechanisms like Earned Value Management (EVM) and regular performance reviews are essential to identify potential overruns early and manage them proactively.
Given the sole-source nature, how can the DoD ensure fair and reasonable pricing for this software sustainment over the contract's duration?
Ensuring fair and reasonable pricing for sole-source contracts requires robust government cost analysis and negotiation. The DoD should leverage historical pricing data, conduct independent cost estimates, and potentially engage third-party experts. Strong contract administration and performance monitoring are also key to identifying any inefficiencies or unjustified cost increases.
What is the long-term strategy for C-130J software sustainment, and could future requirements be competed to foster innovation and reduce costs?
The long-term strategy for C-130J software sustainment needs to be evaluated. While incumbent sustainment is often necessary, periodic reviews should assess opportunities for future competition, potentially through modular upgrades or platform modernization efforts. This could drive innovation, introduce new technologies, and create a more competitive landscape to achieve better value.
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: $14,467,846
Exercised Options: $14,467,846
Current Obligation: $14,467,846
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $189,505
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: 2020-09-30
Current End Date: 2025-08-26
Potential End Date: 2026-10-26 00:00:00
Last Modified: 2025-09-22
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)