DoD awards $13.1M contract to Lockheed Martin for aircraft accessories, highlighting a firm-fixed-price structure

Contract Overview

Contract Amount: $13,146,526 ($13.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2006-06-22

End Date: 2012-09-30

Contract Duration: 2,292 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200609!452493!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0108 !A!N! !N! ! !20060622!20060930!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000006083588!N!N!000009176815!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!B! !A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! !1719!N00019!0001! !

Place of Performance

Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to LOCKHEED MARTIN CORPORATION for work described as: 200609!452493!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0108 !A!N! !N! ! !20060622!20060930!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANA… Key points: 1. Contract awarded for aircraft accessories and components, indicating a need for specialized parts. 2. Firm-fixed-price contract type suggests predictable costs for the government. 3. The contract duration of over 2200 days points to a long-term need for these components. 4. Awarded by Naval Air Systems Command, indicating a focus on naval aviation support. 5. The contractor, Lockheed Martin, is a major defense industry player with extensive experience. 6. The contract value of $13.1M is moderate within the defense procurement landscape.

Value Assessment

Rating: good

The contract value of $13.1M for aircraft accessories appears reasonable given the long duration and the nature of specialized defense components. Benchmarking against similar contracts for aircraft parts is challenging without more specific data on the exact components and quantities. However, the firm-fixed-price structure generally provides good value by shifting cost overrun risks to the contractor.

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. The presence of two bids suggests a competitive environment, which typically leads to better pricing and terms for the government. The specific details of the competition, such as the number of proposals received and the evaluation criteria, are not fully detailed in the provided data.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors strive to offer the best value, potentially leading to lower prices and higher quality goods and services.

Public Impact

Naval aviation operations benefit from the supply of essential aircraft accessories and components. The contract supports the maintenance and readiness of naval aircraft fleets. The geographic impact is primarily centered around the contractor's facility in Manassas, Virginia, and the naval air stations where the components will be utilized. The contract supports jobs within Lockheed Martin's supply chain and manufacturing operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract modifications if not carefully managed.
Dependence on a single large contractor for critical components could pose supply chain risks.

Positive Signals

Firm-fixed-price structure locks in costs, providing budget certainty.
Full and open competition suggests a healthy market and potential for competitive pricing.
Long contract duration indicates a stable, ongoing need and potential for economies of scale.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on aircraft components. The market for such specialized parts is often characterized by high barriers to entry due to technological requirements and stringent quality standards. Spending in this area is critical for maintaining military readiness and technological superiority. Comparable spending benchmarks would typically involve analyzing other contracts for similar aircraft parts or systems awarded by the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. The primary awardee is a large defense contractor. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for this specific contract.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms, including contract administration by the Defense Contract Management Agency. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a set price. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics and audit reports may not always be publicly accessible.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Naval Aviation Support Contracts
Defense Procurement
Lockheed Martin Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Dependence on a single large contractor for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to LOCKHEED MARTIN CORPORATION. 200609!452493!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0108 !A!N! !N! ! !20060622!20060930!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000006083588!N!N!000009176815!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2006-06-22. End: 2012-09-30.

What specific types of aircraft accessories and components are covered under this contract?

The contract specifies the National Stock Number (NSN) '336413' which corresponds to 'Other Aircraft Equipment Components'. While the exact list of components is not detailed in the provided summary data, this classification suggests a broad range of parts used in aircraft systems, potentially including but not limited to, structural components, electrical systems parts, hydraulic or pneumatic system parts, or specialized hardware. The primary contractor, Lockheed Martin, is a major manufacturer of various aircraft, so these components likely support their product lines or other naval aviation platforms.

How does the $13.1M award compare to typical spending for similar aircraft components?

Direct comparison of the $13.1M award to 'typical' spending is difficult without knowing the precise nature and quantity of the components. However, for a contract spanning over 6 years (2006-2012), this value represents an average annual spend of approximately $2.1M. This is a moderate amount within the defense sector, which often sees much larger sole-source or development contracts. The firm-fixed-price structure suggests that this amount was determined to be the best value through competition for a defined set of requirements over the contract's life.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract include potential supply chain disruptions if Lockheed Martin faces production issues or if the components become obsolete. Another risk is the possibility of the contractor not meeting quality standards, although the firm-fixed-price nature incentivizes them to deliver conforming goods. Given the long duration, there's also a risk of the government's needs evolving beyond what the contract initially covered, potentially requiring new procurements or modifications. However, the full and open competition mitigates some pricing risks.

What is Lockheed Martin's track record with similar contracts?

Lockheed Martin is a major defense contractor with an extensive history of producing and supplying aircraft, components, and related services to the U.S. military and international partners. They have a well-established track record in managing complex supply chains and manufacturing processes for aerospace applications. While specific performance data for this particular contract isn't detailed here, their general standing in the industry suggests a high likelihood of meeting contractual obligations, though like any large corporation, they may have faced specific performance challenges on individual contracts over their long history.

How has spending on 'Other Aircraft Equipment Components' evolved over time?

Spending on 'Other Aircraft Equipment Components' (PSC code 1680, NSN 336413) is a category that fluctuates based on fleet readiness needs, modernization programs, and the introduction of new aircraft platforms. Historically, the Department of Defense has consistently allocated significant funds to sustain its vast aircraft inventory. Spending in this specific sub-category would have likely seen increases during periods of high operational tempo (e.g., conflicts in Iraq and Afghanistan) and potentially decreased during budget drawdowns. Analyzing trends requires access to historical spending data across multiple fiscal years and agencies.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 9500 GODWIN DR, MANASSAS, VA, 20110

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline