DoD's $35.9M AC-130J Support Services Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $35,915,924 ($35.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-01-30
End Date: 2022-06-11
Contract Duration: 863 days
Daily Burn Rate: $41.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FY20 AC-130J INSTALLS
Place of Performance
Location: CRESTVIEW, OKALOOSA County, FLORIDA, 32539
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $35.9 million to LOCKHEED MARTIN CORPORATION for work described as: FY20 AC-130J INSTALLS Key points: 1. The contract awarded to Lockheed Martin for AC-130J support services represents a significant investment in specialized aviation capabilities. 2. Competition was full and open, suggesting a potentially competitive bidding process that could drive favorable pricing. 3. The use of a Cost Plus Fixed Fee (CPFF) contract type introduces some risk regarding cost overruns, though the fixed fee element provides a ceiling. 4. The sector is Defense, specifically focusing on aircraft support services, which is critical for maintaining operational readiness.
Value Assessment
Rating: good
The award amount of $35.9 million for support services appears reasonable given the specialized nature of AC-130J aircraft. Benchmarking against similar complex aircraft support 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, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment due to a lack of competition.
Public Impact
Ensures continued operational readiness and support for the critical AC-130J gunship platform. Supports advanced military capabilities essential for special operations missions. Contributes to the defense industrial base and associated employment.
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 contractor for specialized support services.
- Potential for scope creep in support services.
Positive Signals
- Awarded under full and open competition.
- Clear definition of services for AC-130J aircraft.
- Contract supports a critical defense asset.
Sector Analysis
This contract falls within the Defense sector, specifically supporting specialized aircraft maintenance and operational services. Spending benchmarks in this area are highly variable, depending on the complexity and age of the aircraft, as well as the scope of support required.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corporation. There is no specific information provided regarding small business participation or subcontracting goals within this award, which warrants further investigation.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. The contract type (CPFF) necessitates robust monitoring to ensure costs remain within reasonable bounds and that the fixed fee is justified by performance.
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.
- Lack of specific small business participation data.
- Potential for contractor dependency.
- Need for detailed performance metric tracking.
Tags
all-other-support-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.9 million to LOCKHEED MARTIN CORPORATION. FY20 AC-130J INSTALLS
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 $35.9 million.
What is the period of performance?
Start: 2020-01-30. End: 2022-06-11.
What is the historical cost performance of similar AC-130J support contracts awarded to Lockheed Martin or other contractors?
Historical cost performance data for similar AC-130J support contracts is crucial for validating the current award's value. Analyzing past contracts can reveal trends in cost overruns, efficiency gains, and the effectiveness of different contract types in managing expenses for specialized aviation support.
What are the specific performance metrics and deliverables outlined in the contract, and how are they being monitored?
Understanding the specific performance metrics and deliverables is key to assessing effectiveness. Robust monitoring mechanisms by the Department of Defense and U.S. Special Operations Command are essential to ensure Lockheed Martin meets its obligations, maintains aircraft readiness, and justifies the contract's cost.
What is the long-term strategy for AC-130J support, and does this contract align with future sustainment plans?
The long-term strategy for AC-130J support influences the overall value and effectiveness of this contract. Aligning current awards with future sustainment plans ensures continuity, avoids redundant spending, and optimizes the lifecycle management of this critical defense asset.
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: $35,915,924
Exercised Options: $35,915,924
Current Obligation: $35,915,924
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $199,242
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: 2020-01-30
Current End Date: 2022-06-11
Potential End Date: 2022-06-11 00:00:00
Last Modified: 2022-12-09
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