DoD's $51.5M MC-130J CR2 Installs Contract Awarded to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $51,521,184 ($51.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-04-24
End Date: 2023-09-08
Contract Duration: 1,232 days
Daily Burn Rate: $41.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MC-130J CR2 INSTALLS
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $51.5 million to LOCKHEED MARTIN CORPORATION for work described as: MC-130J CR2 INSTALLS Key points: 1. Significant contract value of over $51.5 million for specialized aircraft modifications. 2. Awarded to a single, established contractor, Lockheed Martin, indicating potential reliance on existing expertise. 3. The contract falls under 'All Other Support Services,' a broad category requiring careful monitoring for scope creep. 4. The 'Cost Plus Fixed Fee' pricing structure warrants scrutiny to ensure cost efficiency and prevent overruns.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While common for complex projects, it requires robust oversight to manage costs effectively. Benchmarking against similar aircraft modification contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government. The specific impact on price depends on the number and quality of bids received.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive pricing.
Public Impact
Supports U.S. Special Operations Command's critical mission capabilities. Enhances the operational readiness and effectiveness of MC-130J aircraft. Potential for follow-on work or similar modifications for other aircraft platforms. Job creation and economic activity in Kentucky, where the work is performed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing structure requires close monitoring for cost control.
- Broad 'All Other Support Services' category may lack specific performance metrics.
- Reliance on a single contractor for specialized modifications.
Positive Signals
- Awarded through full and open competition.
- Supports critical national security missions.
- Contract duration provides stability for planning and execution.
Sector Analysis
This contract falls under the 'All Other Support Services' NAICS code (561990), which is broad and can encompass a wide range of services. Benchmarking within specialized aerospace modification services would be more relevant than general support services.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Larger prime contractors often utilize small business subcontractors, but this contract's direct award does not specify small business participation.
Oversight & Accountability
The Department of Defense and U.S. Special Operations Command are responsible for oversight. Given the CPFF structure, rigorous oversight of costs, performance, and adherence to contract terms is crucial to ensure accountability and value.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of specific performance metrics in the broad 'support services' category.
- Sole-source award to Lockheed Martin may limit future competitive opportunities.
- Dependency on a single contractor for critical aircraft modifications.
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 $51.5 million to LOCKHEED MARTIN CORPORATION. MC-130J CR2 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 $51.5 million.
What is the period of performance?
Start: 2020-04-24. End: 2023-09-08.
What specific CR2 modifications are being performed on the MC-130J aircraft, and how do these modifications directly enhance operational capabilities?
The CR2 modifications likely refer to specific upgrades or enhancements to the MC-130J Commando II aircraft, a vital asset for special operations missions. These could include avionics upgrades, structural reinforcements, or integration of new mission systems. The exact nature of these modifications directly impacts the aircraft's ability to perform intelligence, surveillance, reconnaissance, and direct action missions more effectively and safely.
How will the Cost Plus Fixed Fee (CPFF) structure be managed to ensure cost efficiency and prevent potential budget overruns, given the complexity of aircraft modifications?
Effective management of a CPFF contract involves stringent cost tracking, regular audits, and clear communication channels between the government and Lockheed Martin. The government must establish realistic baseline cost estimates and closely monitor all incurred costs against the fixed fee. Performance metrics tied to milestones and deliverables will be essential to ensure the contractor remains focused on efficient execution and avoids scope creep.
What is the projected impact of these MC-130J CR2 installs on the overall readiness and operational tempo of U.S. Special Operations Command's air assets?
Successful and timely completion of the CR2 installs is expected to significantly enhance the readiness and operational effectiveness of the MC-130J fleet. Upgraded aircraft can operate more reliably, potentially reduce maintenance downtime, and incorporate advanced capabilities necessary for evolving mission requirements. This directly contributes to SOCOM's ability to rapidly deploy and sustain special operations forces globally.
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: $51,521,184
Exercised Options: $51,521,184
Current Obligation: $51,521,184
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $124,920,826
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: 2020-04-24
Current End Date: 2023-09-08
Potential End Date: 2023-09-08 00:00:00
Last Modified: 2024-11-08
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