DoD Awards $71.5M for HC-130J Defensive Systems Engineering, Sole-Source to Lockheed Martin
Contract Overview
Contract Amount: $71,451,524 ($71.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2019-10-25
End Date: 2026-06-30
Contract Duration: 2,440 days
Daily Burn Rate: $29.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HC-130J_DEFENSIVE SYSTEMS SUITE EFFORT ENGINEERING CHANGE PROPOSAL 18-00210
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $71.5 million to LOCKHEED MARTIN CORP for work described as: HC-130J_DEFENSIVE SYSTEMS SUITE EFFORT ENGINEERING CHANGE PROPOSAL 18-00210 Key points: 1. Significant contract value for aircraft modification and engineering. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Potential risk associated with single-vendor reliance for critical systems. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $71.5M for engineering changes to defensive systems is substantial. Benchmarking against similar sole-source modifications for complex aircraft systems is difficult without competitive data, but the price appears high given the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competitive bidding process. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these defensive system upgrades.
Public Impact
Enhances survivability and operational effectiveness of HC-130J aircraft. Impacts readiness and capability of Air Force special operations and combat search and rescue missions. Sustains critical defense technology and expertise within Lockheed Martin.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value for modifications
Positive Signals
- Addresses critical defensive system needs
- Supports key Air Force mission capabilities
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically focusing on modifications and engineering changes for a specialized military aircraft. Spending benchmarks for sole-source modifications of this nature are often higher than competed efforts.
Small Business Impact
The contract was awarded to Lockheed Martin, a large prime contractor. There is no indication of small business participation in this specific sole-source award, suggesting limited opportunities for small businesses.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent cost overruns. The Department of the Air Force is responsible for monitoring this contract's performance and expenditures.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- Reliance on a single vendor for critical system upgrades.
- Limited transparency into the pricing justification.
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 $71.5 million to LOCKHEED MARTIN CORP. HC-130J_DEFENSIVE SYSTEMS SUITE EFFORT ENGINEERING CHANGE PROPOSAL 18-00210
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 $71.5 million.
What is the period of performance?
Start: 2019-10-25. End: 2026-06-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without specific documentation, it's unclear if other competitive strategies were explored. Agencies must provide detailed justifications for sole-source awards to ensure they are necessary and in the government's best interest.
How does the cost of this engineering change proposal compare to similar modifications on other aircraft platforms?
Comparing the cost of this $71.5M engineering change proposal to similar modifications is challenging due to the sole-source nature and specific system upgrades. A thorough cost analysis by the DoD, potentially using independent cost estimates or historical data from comparable, albeit potentially competed, modifications, would be necessary to assess value.
What is the long-term impact on the HC-130J's operational effectiveness and maintainability?
The engineering change is intended to enhance the HC-130J's defensive capabilities, directly improving its survivability and effectiveness in contested environments. The long-term impact on maintainability will depend on the complexity of the new systems, the availability of parts, and the training provided to maintenance personnel.
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: $84,325,281
Exercised Options: $81,794,554
Current Obligation: $71,451,524
Actual Outlays: $4,470,727
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $33,932,725
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862516D6458
IDV Type: IDC
Timeline
Start Date: 2019-10-25
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-12
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)