DoD's $33.7M AC130J Kit Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $33,748,592 ($33.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-10
End Date: 2022-04-22
Contract Duration: 802 days
Daily Burn Rate: $42.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AC130J KITS 28-32
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $33.7 million to LOCKHEED MARTIN CORPORATION for work described as: AC130J KITS 28-32 Key points: 1. The contract awarded to Lockheed Martin for AC130J kits represents a significant investment in specialized aircraft support. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type introduces some cost risk. 4. This spending falls within the broader Defense sector, specifically supporting Special Operations Command.
Value Assessment
Rating: good
The award amount of $33.7M for AC130J kits appears reasonable given the specialized nature of the equipment and the sole contractor. Benchmarking against similar complex aircraft modification contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The specific pricing discovery mechanisms within the CPFF structure will influence the final cost.
Taxpayer Impact: Taxpayer funds are being used for critical military aircraft upgrades, aiming for enhanced operational capabilities. The competitive award process is intended to ensure value for money.
Public Impact
Enhances the capabilities of the AC130J Ghostrider gunship, a key asset for special operations. Supports ongoing modernization efforts within the U.S. Special Operations Command. Ensures the continued operational readiness and effectiveness of a vital air support platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed closely.
- Reliance on a single manufacturer for specialized kits may limit future negotiation leverage.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Supports a critical and unique military platform, addressing a specific operational need.
Sector Analysis
This contract falls under the Defense sector, specifically supporting aviation and specialized support services. Spending benchmarks for aircraft modification and support services vary widely based on complexity and scope.
Small Business Impact
The data indicates the award went to Lockheed Martin Corporation, a large prime contractor. There is no explicit information on small business participation in this specific delivery order, but prime contractors often subcontract to small businesses.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. The CPFF contract type necessitates robust monitoring of costs and performance to ensure accountability.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for sole-source reliance on Lockheed Martin for future kits or modifications.
- Lack of detailed performance metrics in the award summary.
- Limited visibility into small business participation.
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to LOCKHEED MARTIN CORPORATION. AC130J KITS 28-32
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 $33.7 million.
What is the period of performance?
Start: 2020-02-10. End: 2022-04-22.
What is the projected total cost of ownership for the AC130J kits over their lifecycle, considering maintenance and upgrades?
The lifecycle cost of ownership for AC130J kits is not detailed in this award data. A comprehensive analysis would require projections for sustainment, spare parts, potential modifications, and training over the operational life of the kits. This information is typically managed through separate sustainment contracts and program management.
What are the specific performance metrics and key performance parameters (KPPs) associated with these AC130J kits?
The provided data does not specify the key performance parameters (KPPs) for the AC130J kits. These would typically be detailed in the contract's statement of work and would define the required capabilities, reliability, and operational effectiveness. Performance would be monitored through contract deliverables and operational testing.
How does the cost of these AC130J kits compare to similar support services or upgrades for other specialized military aircraft?
Direct cost comparisons are challenging without specific details on the kits' functionality and the nature of support services for other aircraft. However, the $33.7M award for specialized kits suggests a significant investment, likely reflecting advanced technology and unique operational requirements inherent to the AC130J platform.
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
Parent Company: Lockheed Martin Corp
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: $33,748,592
Exercised Options: $33,748,592
Current Obligation: $33,748,592
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,518,710
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
Start Date: 2020-02-10
Current End Date: 2022-04-22
Potential End Date: 2022-04-22 00:00:00
Last Modified: 2022-09-27
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