DoD Awards Lockheed Martin $5.5M for Air Transport Maintenance and Support Services
Contract Overview
Contract Amount: $5,509,806 ($5.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2027-12-31
Contract Duration: 1,094 days
Daily Burn Rate: $5.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: I-LEVEL MAINTENANCE TRANSITION & REPAIRS AND ASSOCIATED MATERIAL SUPPORT SERVICES AND GST
Plain-Language Summary
Department of Defense obligated $5.5 million to LOCKHEED MARTIN CORPORATION for work described as: I-LEVEL MAINTENANCE TRANSITION & REPAIRS AND ASSOCIATED MATERIAL SUPPORT SERVICES AND GST Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on critical I-level maintenance and material support. 3. Long-term contract duration (3 years) suggests ongoing need. 4. Potential for cost overruns given Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to higher costs if not managed closely. Benchmarking against similar maintenance contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayer funds are committed to a sole-source contract, potentially at a premium due to lack of competition.
Public Impact
Ensures continued operational readiness for naval air assets. Supports critical maintenance functions, reducing downtime for aircraft. Provides necessary materials for repairs, maintaining supply chain integrity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- CPFF contract type can incentivize cost overruns.
- Lack of detailed cost data hinders robust value assessment.
Positive Signals
- Addresses a critical operational need for the Department of the Navy.
- Long-term contract provides stability for essential maintenance services.
Sector Analysis
This contract falls under the broader aerospace and defense sector, specifically focusing on aircraft maintenance and logistics. Spending in this area is crucial for maintaining military readiness and operational capabilities.
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 within the provided data.
Oversight & Accountability
Oversight will be critical to manage costs under the CPFF structure and ensure performance standards are met. The Department of the Navy is responsible for monitoring this contract.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost escalation
- Limited transparency on detailed cost components
Tags
other-support-activities-for-air-transpo, department-of-defense, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to LOCKHEED MARTIN CORPORATION. I-LEVEL MAINTENANCE TRANSITION & REPAIRS AND ASSOCIATED MATERIAL SUPPORT SERVICES AND GST
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $5.5 million.
What is the period of performance?
Start: 2025-01-01. End: 2027-12-31.
What is the estimated total cost for the duration of the contract, and how does it compare to historical spending for similar services?
The contract value is listed as $5,509,806, but this likely represents the initial award amount or ceiling, not the total cost over the 3-year period. Without historical data for comparable maintenance services, it's difficult to assess if this represents good value. The CPFF structure also means the final cost could exceed this initial estimate.
What are the specific risks associated with a limited competition award for critical maintenance services?
Limited competition increases the risk of paying a higher price than in a competitive environment. It also reduces the incentive for the contractor to innovate or find cost efficiencies. Furthermore, it limits the government's ability to switch providers if performance is unsatisfactory, creating dependency.
How effectively will the CPFF contract type ensure the government receives value for money in this maintenance service agreement?
The CPFF structure can be effective for services where costs are difficult to estimate upfront, like complex maintenance. However, it carries a risk of cost overruns as the contractor is reimbursed for actual costs plus a fee. Effective oversight is crucial to ensure costs are reasonable and the fixed fee is justified.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE ROUTE 17C, OWEGO, NY, 13827
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: $5,509,806
Exercised Options: $5,509,806
Current Obligation: $5,509,806
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001925D0016
IDV Type: IDC
Timeline
Start Date: 2025-01-01
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-12
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