DoD Awards $18.5M for AC-130J Retrofit to Lockheed Martin, Boosting Special Operations Capabilities
Contract Overview
Contract Amount: $18,499,954 ($18.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-06-30
End Date: 2025-07-30
Contract Duration: 761 days
Daily Burn Rate: $24.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AC-130J RETROFIT INSTALLS R6 - R12
Place of Performance
Location: CRESTVIEW, OKALOOSA County, FLORIDA, 32539
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $18.5 million to LOCKHEED MARTIN CORPORATION for work described as: AC-130J RETROFIT INSTALLS R6 - R12 Key points: 1. Significant investment in enhancing the AC-130J Ghostrider gunship. 2. Sole awardee Lockheed Martin suggests potential for limited competition or specialized expertise. 3. Cost-plus fixed-fee contract type requires careful monitoring of expenditures. 4. Retrofit targets critical operational upgrades (R6-R12) for U.S. Special Operations Command.
Value Assessment
Rating: good
The contract value of $18.5 million for a major aircraft retrofit appears reasonable given the complexity and specialized nature of the AC-130J platform. Benchmarking against similar large-scale military aircraft modification contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific nature of the retrofit and the prime contractor's role may influence the actual level of competition for sub-components and services.
Taxpayer Impact: Taxpayer funds are being utilized for essential military modernization, aiming to enhance national security capabilities through advanced aircraft systems.
Public Impact
Enhances the combat effectiveness and survivability of a key special operations aircraft. Supports advanced electronic warfare and sensor integration for the AC-130J. Contributes to the technological superiority of U.S. Air Force Special Operations Command.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns due to the cost-plus fixed-fee structure.
- Potential for schedule delays in complex retrofitting.
- Dependence on a single contractor for critical upgrades.
Positive Signals
- Directly supports critical national defense missions.
- Modernizes a vital asset for special operations.
- Awarded through a competitive process.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and support services. Spending in this area is driven by the need to maintain and upgrade aging fleets with modern technologies to meet evolving threats.
Small Business Impact
While the prime contractor is Lockheed Martin, a large aerospace company, the contract details do not specify the extent of small business participation. Subcontracting opportunities may exist, but are not explicitly detailed in this award notice.
Oversight & Accountability
The Department of Defense, through U.S. Special Operations Command, is responsible for overseeing this contract. The cost-plus fixed-fee nature necessitates robust oversight to manage costs and ensure value for taxpayer money.
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 schedule slippage on complex retrofits.
- Sole awardee may limit future competitive pricing.
- Dependence on prime contractor's supply chain.
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 $18.5 million to LOCKHEED MARTIN CORPORATION. AC-130J RETROFIT INSTALLS R6 - R12
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 $18.5 million.
What is the period of performance?
Start: 2023-06-30. End: 2025-07-30.
What specific performance improvements are expected from the R6-R12 retrofits, and how will these translate to enhanced mission effectiveness for the AC-130J?
The R6-R12 retrofits are expected to incorporate advanced electronic warfare suites, improved sensor packages, and potentially upgraded communication systems. These enhancements aim to increase the AC-130J's ability to operate in contested environments, provide more precise targeting information, and improve situational awareness for the crew, ultimately boosting its effectiveness in supporting special operations missions.
What are the primary risks associated with a cost-plus fixed-fee contract for aircraft retrofitting, and what mitigation strategies are in place?
The primary risk is potential cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include stringent cost accounting standards, detailed audits, performance metrics, and clear definition of allowable costs. The government's contracting officers must actively monitor expenditures and contractor performance to ensure cost control and prevent scope creep.
How does this investment align with the broader modernization strategy for U.S. Special Operations Command's aviation assets, and what is the anticipated return on investment?
This investment is crucial for maintaining the AC-130J's relevance and capability in a rapidly evolving threat landscape, aligning with SOCOM's strategy to modernize its specialized aviation fleet. The return on investment is measured not just in financial terms but in enhanced operational capabilities, improved force protection, and the ability to execute complex missions more effectively, contributing to national security objectives.
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: $20,661,914
Exercised Options: $20,661,914
Current Obligation: $18,499,954
Subaward Activity
Number of Subawards: 1
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: 2023-06-30
Current End Date: 2025-07-30
Potential End Date: 2025-07-30 00:00:00
Last Modified: 2025-09-02
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