DoD's $100M+ Lockheed Martin contract for flight training services in Florida awarded via full and open competition
Contract Overview
Contract Amount: $100,530,735 ($100.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2004-06-22
End Date: 2011-07-21
Contract Duration: 2,585 days
Daily Burn Rate: $38.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $100.5 million to LOCKHEED MARTIN CORPORATION for work described as: Key points: 1. Contract value exceeds $100 million, indicating a significant investment in flight training capabilities. 2. Awarded to a single, large defense contractor, suggesting a focus on established expertise and capacity. 3. The duration of the contract (over 7 years) points to a long-term need for these services. 4. Firm Fixed Price contract type suggests predictable costs for the government, assuming performance is met. 5. The contract is for flight training, a critical component of military readiness and personnel development. 6. Awarded by the Department of the Air Force, highlighting its importance within Air Force operations.
Value Assessment
Rating: good
The contract value of over $100 million for flight training services is substantial. Benchmarking this against similar large-scale training contracts is difficult without more specific service details. However, the Firm Fixed Price structure suggests an attempt to control costs. The duration of the contract implies a consistent need, and the award to a major defense contractor like Lockheed Martin suggests a competitive process that likely yielded a reasonable price for the scope of work, though direct per-unit cost comparisons are not available.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process designed to solicit the best value. While the number of bidders is not specified, the open competition generally leads to more competitive pricing and a wider range of potential solutions.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring the government receives the best possible value for its investment in flight training.
Public Impact
The primary beneficiaries are the U.S. Air Force personnel who will receive advanced flight training. The services delivered include essential flight training, crucial for maintaining pilot proficiency and operational readiness. The geographic impact is concentrated in Florida, where the training is being conducted. This contract supports specialized roles within the defense sector, potentially impacting the aerospace and defense workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to the long-term nature and specialized services.
- Reliance on a single large contractor may limit flexibility in adapting to future training needs.
- The significant dollar amount could indicate a high cost per trainee if not managed efficiently.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Firm Fixed Price contract type provides cost certainty for the government.
- Long contract duration indicates a stable and predictable training pipeline.
- Award to a reputable contractor with extensive experience in defense systems.
Sector Analysis
The aerospace and defense sector is characterized by large, complex contracts often involving specialized technology and services. Flight training is a critical sub-sector within defense, essential for maintaining the operational capabilities of air forces. Spending in this area is driven by military readiness requirements and the need for continuous pilot development. Comparable spending benchmarks would typically involve other large-scale military training programs or aircraft procurement contracts.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, and the prime contractor is a large corporation. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often involve subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's established procurement and contract management regulations. The Air Force contracting officers are responsible for monitoring performance and ensuring compliance. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Air Force Pilot Training Programs
- Defense Contractor Services
- Aerospace Training Solutions
- Military Readiness Contracts
Risk Flags
- Long-term contract duration may limit flexibility.
- Potential for cost escalation if not managed tightly.
- Reliance on a single large contractor.
Tags
defense, department-of-defense, department-of-the-air-force, lockheed-martin-corporation, flight-training, firm-fixed-price, full-and-open-competition, large-contract, florida, professional-technical-training, government-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $100.5 million to LOCKHEED MARTIN CORPORATION. See the official description on USAspending.
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 Air Force).
What is the total obligated amount?
The obligated amount is $100.5 million.
What is the period of performance?
Start: 2004-06-22. End: 2011-07-21.
What is Lockheed Martin's track record with similar flight training contracts for the Department of Defense?
Lockheed Martin has a long and extensive history of providing complex systems and services to the Department of Defense, including significant involvement in training programs. While specific details on all past flight training contracts are not provided here, the company is a major defense contractor known for its capabilities in aviation, simulation, and training solutions. Their track record generally includes delivering large-scale, technologically advanced programs. For this specific contract, the award itself suggests they met the DoD's requirements for experience and capability in flight training. Further analysis would involve reviewing past performance evaluations and contract histories for similar training services provided by Lockheed Martin to the Air Force or other branches.
How does the $100.5 million contract value compare to other large flight training contracts awarded by the DoD?
The $100.5 million contract value places this award among significant investments in military flight training. Without access to a comprehensive database of all DoD flight training contracts, a precise comparison is challenging. However, major training initiatives, especially those involving advanced platforms or extensive pilot pipelines, can easily reach into the hundreds of millions or even billions of dollars over their lifecycle. This contract's value suggests a substantial program, likely covering a significant number of trainees or a complex training curriculum over its duration. It is comparable to other large-scale, multi-year training service contracts awarded to major defense contractors for specialized military education and skill development.
What are the primary risks associated with a long-term, firm-fixed-price flight training contract?
A primary risk with long-term, firm-fixed-price contracts is the potential for cost overruns if the contractor miscalculates expenses, especially if the scope of work or market conditions change significantly over the contract's duration. For the government, the risk is paying a fixed price that may become uncompetitive if market rates decrease or if the contractor fails to deliver the expected quality or quantity of training. Conversely, the contractor bears the risk of cost increases. For flight training specifically, risks include the obsolescence of training equipment or methodologies, difficulty in recruiting and retaining qualified instructors, and potential changes in military requirements that the training program may not immediately adapt to. Ensuring robust performance metrics and clear deliverables is crucial to mitigate these risks.
How effective is full and open competition in ensuring value for money in defense training contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in defense contracts, including those for flight training. By allowing all responsible sources to compete, the government benefits from a wider range of proposals, potentially lower prices due to competitive pressures, and innovative solutions. This process encourages contractors to offer their best value propositions to win the contract. While it requires more upfront effort in solicitation and evaluation, the long-term savings and improved quality often outweigh these initial costs. The success of full and open competition relies on clear requirements, a fair evaluation process, and sufficient market interest to ensure meaningful competition.
What is the historical spending trend for flight training services within the Department of the Air Force?
Historical spending on flight training services within the Department of the Air Force has been consistently significant, reflecting the continuous need to train and maintain a highly skilled pilot force. While specific year-over-year data for this contract's category (NAICS 611512) is not provided, the Air Force invests billions annually in training and education across various domains. Spending fluctuates based on aircraft modernization programs, geopolitical demands, pilot retention rates, and evolving training technologies (e.g., simulators, virtual reality). Large, multi-year contracts like this one represent a substantial portion of that annual investment, providing stability for training providers and ensuring a steady pipeline of qualified aviators. Trends often show an increasing emphasis on technologically advanced training solutions.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Flight Training
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 12506LAKE UNDERHILL ROAD, ORLANDO, FL, 32825
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365701D2072
IDV Type: IDC
Timeline
Start Date: 2004-06-22
Current End Date: 2011-07-21
Potential End Date: 2011-07-21 00:00:00
Last Modified: 2016-09-19
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