DoD Awards $11.7M for EC-130J Demod Design & Engineering to Lockheed Martin
Contract Overview
Contract Amount: $11,735,850 ($11.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2026-06-03
Contract Duration: 611 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: EC-130J DEMOD DESIGN AND ENGINEERING
Place of Performance
Location: LEXINGTON, FAYETTE County, KENTUCKY, 40516
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $11.7 million to LOCKHEED MARTIN CORPORATION for work described as: EC-130J DEMOD DESIGN AND ENGINEERING Key points: 1. Contract value of $11.7M for specialized aircraft modification. 2. Sole awardee is Lockheed Martin Corporation, a major defense contractor. 3. Potential risk associated with single-source reliance for critical systems. 4. Spending falls under Defense sector, specifically Special Operations Command. 5. Contract duration extends to June 2026.
Value Assessment
Rating: good
The contract value of $11.7M appears reasonable for specialized aircraft design and engineering services. Benchmarking against similar modification contracts for complex platforms like the EC-130J is necessary for a definitive assessment.
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 is expected to yield fair pricing and identify the most capable offeror.
Taxpayer Impact: Competition generally leads to better value for taxpayers by driving down costs and ensuring efficient use of funds.
Public Impact
Enhances capabilities of the EC-130J aircraft for special operations. Supports advanced electronic warfare and communication systems. Ensures continued technological superiority for critical missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single contractor for critical modifications.
- Potential for cost overruns in cost-plus contracts.
- Long contract duration may limit flexibility.
Positive Signals
- Awarded through full and open competition.
- Experienced contractor with proven capabilities.
- Supports critical national security missions.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and engineering. Spending benchmarks for similar specialized aircraft upgrades can vary significantly based on complexity and platform.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight will be managed by the U.S. Special Operations Command. The cost-plus-fixed-fee structure requires diligent monitoring to ensure costs remain within reasonable bounds and the fixed fee is justified.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Cost-plus contract type can lead to cost overruns.
- Long contract duration may not adapt to rapidly changing technology.
- Lack of small business participation noted.
- Sole awardee for critical 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 $11.7 million to LOCKHEED MARTIN CORPORATION. EC-130J DEMOD DESIGN AND ENGINEERING
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 $11.7 million.
What is the period of performance?
Start: 2024-09-30. End: 2026-06-03.
What is the specific scope of 'DEMOD DESIGN AND ENGINEERING' for the EC-130J, and how does it align with current operational needs?
The 'DEMOD DESIGN AND ENGINEERING' likely refers to modifications or upgrades to the EC-130J's electronic systems, communication suites, or mission equipment. This could involve de-modification of older systems and integration of new technologies to enhance its electronic warfare, intelligence, surveillance, and reconnaissance (ISR) capabilities, ensuring it remains effective against evolving threats.
What are the key performance indicators (KPIs) and milestones for this contract to ensure successful delivery and value for money?
Key performance indicators would likely include adherence to design specifications, successful integration of new systems, timely completion of engineering milestones, and performance of the modified systems in testing and operational environments. Milestones would be tied to design reviews, prototype development, testing phases, and final delivery, ensuring progress is tracked and value is realized incrementally.
How will the effectiveness of the EC-130J modifications be measured post-delivery to justify the investment?
Effectiveness will be measured through post-delivery testing, operational assessments, and feedback from end-users within U.S. Special Operations Command. This includes evaluating improvements in mission success rates, enhanced situational awareness, reduced system failures, and the ability of the modified aircraft to meet or exceed performance requirements in real-world scenarios.
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: $23,061,390
Exercised Options: $11,735,850
Current Obligation: $11,735,850
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,557,262
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: 2024-09-30
Current End Date: 2026-06-03
Potential End Date: 2027-07-12 00:00:00
Last Modified: 2025-12-31
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