DoD's $42.4M C-130 support contract awarded to Lockheed Martin for AFSOC

Contract Overview

Contract Amount: $42,428,300 ($42.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2019-04-29

End Date: 2022-02-28

Contract Duration: 1,036 days

Daily Burn Rate: $41.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AFSOC C-130 CMT

Place of Performance

Location: HURLBURT FIELD, OKALOOSA County, FLORIDA, 32544

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to LOCKHEED MARTIN CORPORATION for work described as: AFSOC C-130 CMT Key points: 1. Contract value represents a significant investment in specialized aircraft support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance duration of over three years indicates a substantial operational requirement. 4. The contract's focus on C-130 sustainment highlights its importance to air mobility. 5. Geographic concentration in Florida points to a specific operational base or need.

Value Assessment

Rating: good

The contract value of $42.4 million for C-130 sustainment services appears reasonable given the specialized nature of military aircraft support. Benchmarking against similar contracts for depot-level maintenance and technical support for large aircraft platforms suggests that pricing is likely within an expected range. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility while providing a defined profit margin for the contractor, which can be efficient for complex, evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation generally suggests a healthy level of competition. This approach is intended to ensure the government receives the best value by leveraging market forces to drive competitive pricing and innovation.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices, reducing the risk of overpayment and encouraging efficient service delivery.

Public Impact

U.S. Special Operations Command (SOCOM) benefits from enhanced readiness and operational capability of its C-130 fleet. Services delivered include crucial maintenance, repair, and technical support for C-130 aircraft. The contract's impact is primarily concentrated in Florida, likely supporting a key operational hub. The contract supports a specialized workforce skilled in aviation maintenance and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely managed.
Reliance on a single prime contractor for critical sustainment may pose supply chain risks.
The duration of the contract could lead to vendor lock-in if not periodically re-competed.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor's established expertise in C-130 platforms likely ensures high-quality service delivery.
The contract supports critical mission readiness for special operations forces.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and support services. The market for military aircraft maintenance and logistics is substantial, driven by the need to maintain aging fleets and ensure operational readiness. Lockheed Martin, as a major defense contractor and the original manufacturer of the C-130, is a key player in this segment. Spending benchmarks for similar sustainment contracts can vary widely based on aircraft type, age, and service complexity, but typically represent a significant portion of an aircraft's total lifecycle cost.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the prime contractor is a large corporation, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized support roles or component supply. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures are embedded within the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

C-130 Hercules Sustainment Programs
Special Operations Forces Aviation Support
Air Mobility Command Logistics Contracts
Defense Contract Management Agency Oversight

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage potential cost growth.
Sole reliance on OEM for specialized support could present long-term supply chain risks if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to LOCKHEED MARTIN CORPORATION. AFSOC C-130 CMT

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $42.4 million.

What is the period of performance?

Start: 2019-04-29. End: 2022-02-28.

What is Lockheed Martin's track record with C-130 sustainment contracts for the U.S. military?

Lockheed Martin, as the original equipment manufacturer (OEM) of the C-130 Hercules, has an extensive and long-standing track record in providing sustainment, maintenance, repair, and overhaul (MRO) services for this aircraft platform across various U.S. military branches and international partners. Their experience spans decades, encompassing upgrades, modifications, spare parts provisioning, and technical support. This deep institutional knowledge and established infrastructure position them as a primary provider for C-130 lifecycle support. Historical data generally shows a consistent performance in meeting contractual obligations, though like any large-scale program, specific contract performance can vary based on scope, duration, and evolving requirements. Their involvement often includes ensuring fleet readiness and addressing obsolescence issues for aging aircraft.

How does the $42.4 million contract value compare to similar C-130 sustainment efforts?

The $42.4 million contract value for AFSOC C-130 sustainment services awarded to Lockheed Martin appears to be within a reasonable range for specialized support over a defined period (approximately 3 years, considering the award and end dates). However, direct comparisons are challenging without knowing the specific scope of work (e.g., depot-level maintenance, component repair, technical publications, field support), the number of aircraft supported, and the specific C-130 variant. Larger, multi-year sustainment contracts for entire fleets can run into hundreds of millions or even billions of dollars. This particular award seems to represent a focused effort, possibly for a specific set of services or a particular operational unit, rather than comprehensive fleet-wide support. Benchmarking would ideally involve comparing the cost per flying hour or cost per maintenance action against similar contracts.

What are the primary risks associated with this type of cost-plus-fixed-fee (CPFF) contract?

Cost-Plus-Fixed-Fee (CPFF) contracts, like the one awarded to Lockheed Martin, present specific risks primarily related to cost control. The government agrees to pay the contractor's allowable costs plus a predetermined fixed fee (profit). The main risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as their allowable costs are reimbursed. If costs escalate beyond initial estimates, the total contract value increases, potentially exceeding the government's budget. To mitigate this, robust oversight, detailed cost tracking, and clear definition of allowable costs within the contract are crucial. The fixed fee, however, provides the contractor with a defined profit margin, which can incentivize efficient performance to complete the work within projected cost parameters to maximize their return on investment.

How does this contract contribute to the overall effectiveness of U.S. Special Operations Command's aviation capabilities?

This contract is vital for ensuring the operational readiness and effectiveness of the U.S. Special Operations Command's (SOCOM) C-130 aircraft fleet. C-130 variants are workhorses for special operations, used for troop transport, cargo delivery, infiltration/exfiltration, and specialized missions. Reliable sustainment, including timely maintenance, repair, and access to necessary parts and technical expertise, directly impacts the availability and reliability of these critical assets. By securing dedicated support services, SOCOM can maintain its C-130s in optimal condition, ensuring they are mission-capable when and where needed, thereby directly supporting the execution of complex and often time-sensitive special operations worldwide.

What are the historical spending patterns for C-130 sustainment within the Department of Defense?

Historical spending on C-130 sustainment within the Department of Defense (DoD) represents a significant and ongoing investment, reflecting the platform's long service life and critical role across multiple branches. Annual spending can fluctuate based on modernization programs, depot maintenance cycles, and operational tempo. Major sustainment efforts often involve large, multi-year contracts managed by entities like Lockheed Martin, covering everything from routine maintenance and component repair to major overhauls and upgrades. The total DoD spending on C-130 sustainment over the past decade likely amounts to several billion dollars, underscoring the platform's enduring importance and the continuous need for robust support infrastructure to maintain fleet readiness and extend its operational lifespan.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9225416R0001

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5749 BRIAR HILL RD, LEXINGTON, KY, 40516

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: $42,428,300

Exercised Options: $42,428,300

Current Obligation: $42,428,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9225417D0001

IDV Type: IDC

Timeline