Over $11.5M for HC-130J Field Service Representative Support at Patrick AFB, awarded to Lockheed Martin Corp

Contract Overview

Contract Amount: $11,593,079 ($11.6M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2019-10-03

End Date: 2026-02-28

Contract Duration: 2,340 days

Daily Burn Rate: $5.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HC-130J FIELD SERVICE REPRESENTATIVE SUPPORT AT PATRICK AIR FORCE BASE

Place of Performance

Location: MARIETTA, COBB County, GEORGIA, 30063

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to LOCKHEED MARTIN CORP for work described as: HC-130J FIELD SERVICE REPRESENTATIVE SUPPORT AT PATRICK AIR FORCE BASE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Duration of over 3 years indicates a long-term need for these services. 4. The contract supports critical HC-130J aircraft operations. 5. No small business set-aside was applied to this award. 6. The award was a delivery order under an existing contract.

Value Assessment

Rating: fair

The contract value of $11.59 million for field service representative support for the HC-130J aircraft appears to be within a reasonable range given the specialized nature of the services and the sole-source award. Benchmarking against similar contracts for specialized aircraft support is challenging due to the proprietary nature of such services and the limited competition. However, the firm fixed-price structure provides a degree of cost control for the government. The duration of the contract, spanning over two years, suggests a sustained requirement for these technical 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 solicited. This approach is typically used when a specific contractor possesses unique capabilities or when the acquisition is a follow-on to a previous sole-source award. The lack of competition means that the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract. The justification for sole-source procurement would need to be thoroughly documented to ensure it aligns with federal acquisition regulations.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competitive pressures to secure the best possible pricing, potentially resulting in less favorable value for taxpayer dollars compared to a competed contract.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the HC-130J aircraft at Patrick Air Force Base, ensuring operational readiness. Services provided include technical support, maintenance assistance, and expertise related to the HC-130J aircraft systems. The geographic impact is localized to Patrick Air Force Base, Florida. The contract supports specialized technical roles, potentially impacting the civilian workforce in aerospace support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of competition may result in higher costs for taxpayers.
Contract duration extends over several years, requiring sustained funding.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Support is for critical HC-130J aircraft, ensuring operational capability.
Awardee is the original equipment manufacturer, likely possessing unique expertise.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technology, and significant government investment. Field service representative support for complex aircraft like the HC-130J is a niche but critical service, often provided by the original equipment manufacturer (OEM) due to proprietary knowledge and design expertise. Spending in this area is driven by the need to maintain the operational readiness of advanced military platforms. Comparable spending benchmarks are difficult to establish publicly due to the proprietary nature of OEM support contracts and the limited number of qualified providers.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Lockheed Martin voluntarily includes small businesses in its subcontracting efforts. The absence of set-asides means that opportunities for small businesses to compete for this specific work were not pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a delivery order under an existing contract, the initial oversight and justification for the sole-source award would have been established previously. Transparency is limited due to the sole-source nature and the lack of a competitive bidding process. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HC-130J Combat King II Support
Aircraft Field Service Representative Contracts
Department of Defense Aircraft Maintenance Support
Lockheed Martin Aircraft Support Contracts

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to LOCKHEED MARTIN CORP. HC-130J FIELD SERVICE REPRESENTATIVE SUPPORT AT PATRICK AIR FORCE BASE

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 $11.6 million.

What is the period of performance?

Start: 2019-10-03. End: 2026-02-28.

What is the historical spending pattern for HC-130J Field Service Representative support at Patrick Air Force Base?

The provided data indicates a single award of $11,593,078.96 for HC-130J Field Service Representative support at Patrick Air Force Base, awarded to Lockheed Martin Corp. This specific award has a start date of October 3, 2019, and an end date of February 28, 2026, with a duration of 2340 days. Without access to historical contract databases or previous awards for this specific service at this location, it is difficult to establish a comprehensive historical spending pattern. However, this single, significant award suggests a consistent and substantial requirement for these specialized support services over the contract period. Further analysis would require examining prior contracts for similar services or support for the HC-130J fleet across different bases.

How does the pricing of this contract compare to similar field service representative contracts for other military aircraft?

Directly comparing the pricing of this $11.59 million contract for HC-130J field service representative support to similar contracts for other military aircraft is challenging due to several factors. Firstly, the specific scope of work, the level of expertise required, and the duration of support can vary significantly between aircraft types. Secondly, this contract was awarded on a sole-source basis to Lockheed Martin, the original equipment manufacturer, which often commands premium pricing due to proprietary knowledge and unique capabilities. Competitive contracts for similar support on different platforms might yield different price points. Without detailed statements of work and pricing breakdowns for comparable sole-source or competed contracts, a precise benchmark is not feasible. However, the firm fixed-price nature suggests an attempt to control costs within the negotiated agreement.

What are the key risks associated with this sole-source contract for field service representative support?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. When only one vendor is solicited, there is less incentive for the contractor to offer the most competitive price. Another risk is vendor lock-in; the government becomes dependent on Lockheed Martin for this specialized support, making it difficult and costly to switch providers in the future. Performance risk also exists, although awarding to the OEM mitigates some of this, as they possess intimate knowledge of the aircraft. However, ensuring adequate service levels and responsiveness throughout the contract duration remains a management challenge. Finally, there's a risk that the government may not be receiving the best overall value compared to what could have been achieved through a competitive process.

What is the perceived effectiveness of Lockheed Martin in providing field service representative support for the HC-130J?

The effectiveness of Lockheed Martin in providing field service representative support for the HC-130J is generally presumed to be high, given their role as the original equipment manufacturer (OEM). OEMs typically possess the most in-depth knowledge of their aircraft's systems, design, and maintenance requirements. This expertise is crucial for troubleshooting complex issues, providing technical guidance, and ensuring the operational readiness of the aircraft. The fact that the Air Force has awarded this contract, even on a sole-source basis, suggests a continued reliance on Lockheed Martin's specialized capabilities. While specific performance metrics are not provided, the long-term nature of the contract and the critical role of the HC-130J imply that the services rendered are considered essential and effective for maintaining the fleet's operational status.

How does this contract align with the Air Force's overall strategy for maintaining its HC-130J fleet?

This contract aligns with the Air Force's strategy by ensuring the continued operational readiness and sustainment of the HC-130J Super Hercules fleet, particularly at Patrick Air Force Base. The HC-130J is a vital platform for personnel recovery, special operations airlift, and combat support missions. Field service representatives provide critical, on-site technical expertise that is essential for maintaining the complex systems of these aircraft. Awarding this support, even sole-source, to Lockheed Martin, the OEM, suggests a strategic decision to leverage their unique knowledge and capabilities to ensure the highest level of fleet availability and performance. This approach prioritizes technical proficiency and rapid problem resolution, which are paramount for mission success and safety in demanding operational environments.

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: $11,593,079

Exercised Options: $11,593,079

Current Obligation: $11,593,079

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $3,258,572

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