DoD Awards $6.2M for MC-130J GPS-H Kits and Installs to Lockheed Martin
Contract Overview
Contract Amount: $6,234,689 ($6.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-10
End Date: 2026-12-10
Contract Duration: 944 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MC-130J GPS-H KITS AND INSTALLS
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $6.2 million to LOCKHEED MARTIN CORPORATION for work described as: MC-130J GPS-H KITS AND INSTALLS Key points: 1. Contract awarded to incumbent, Lockheed Martin, for specialized aircraft modification. 2. Spending is for a specific component (GPS-H Kits) for MC-130J aircraft. 3. Potential for cost overruns exists given the Cost Plus Fixed Fee contract type. 4. The U.S. Special Operations Command is the primary customer. 5. This contract falls under Other Support Services.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for potential cost growth beyond the initial estimate, making direct pricing comparison difficult without detailed cost breakdowns. The award amount of $6.2M for kits and installs suggests a moderate investment for specialized avionics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the specific nature of the GPS-H kits and installation for the MC-130J may have limited the number of qualified bidders, potentially impacting the price discovery process.
Taxpayer Impact: Taxpayer funds are being used for critical upgrades to special operations aircraft, ensuring operational readiness. The competitive award process aims to secure fair pricing, though the CPFF structure warrants monitoring for cost efficiency.
Public Impact
Enhances navigation capabilities for U.S. Special Operations Command aircraft. Supports the modernization of the MC-130J fleet. Ensures continued operational effectiveness for critical missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Limited visibility into specific per-unit costs for kits and labor.
- Potential for sole-source follow-on work if only one vendor can provide the specific kits.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security missions.
- Addresses specific technological upgrade needs for a key aircraft platform.
Sector Analysis
This contract falls within the 'Other Support Services' category, which is broad and can encompass a wide range of services. Benchmarking spending in this specific niche of aircraft avionics modification is challenging without more granular data on similar GPS upgrade contracts.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large defense contractor. There is no indication in the provided data that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The Department of Defense, specifically U.S. Special Operations Command, is responsible for overseeing this contract. The CPFF structure necessitates diligent oversight to manage costs and ensure the contractor meets performance requirements within the agreed-upon fixed fee.
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 cost escalation.
- Limited transparency on per-unit pricing.
- Incumbent contractor award.
Tags
all-other-support-services, department-of-defense, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.2 million to LOCKHEED MARTIN CORPORATION. MC-130J GPS-H KITS AND 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 $6.2 million.
What is the period of performance?
Start: 2024-05-10. End: 2026-12-10.
What is the estimated cost per GPS-H kit and installation?
The provided data does not specify the cost per unit for the GPS-H kits or the installation labor. The total award is $6.2 million for an unspecified quantity of kits and associated installation services. A breakdown would be needed to determine individual unit costs and assess value for money.
What are the risks associated with the Cost Plus Fixed Fee contract type for this acquisition?
The primary risk with a CPFF contract is that the contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize cost overruns, as the contractor may not have as strong a motivation to control expenses compared to fixed-price contracts. Close monitoring of costs and performance is crucial.
How does this spending contribute to the overall effectiveness of the MC-130J fleet?
The GPS-H kits and installations are crucial for modernizing the MC-130J's navigation systems, enhancing its ability to operate in GPS-denied environments and improving mission accuracy. This upgrade directly supports the operational effectiveness and survivability of the aircraft for its specialized missions.
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: $7,236,149
Exercised Options: $6,234,689
Current Obligation: $6,234,689
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $919,810
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: 2024-05-10
Current End Date: 2026-12-10
Potential End Date: 2027-05-20 00:00:00
Last Modified: 2025-12-05
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