DoD Awards $303M for Flight Training to Lockheed Martin, Ending in 2015
Contract Overview
Contract Amount: $30,388,935 ($30.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-07-17
End Date: 2015-12-31
Contract Duration: 3,454 days
Daily Burn Rate: $8.8K/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 $30.4 million to LOCKHEED MARTIN CORPORATION for work described as: Key points: 1. Significant contract value of $303.9 million awarded. 2. Lockheed Martin Corporation is the sole awardee. 3. Contract duration spans nearly a decade. 4. Flight training services are critical for Air Force readiness.
Value Assessment
Rating: fair
The contract value is substantial, but without specific per-unit cost data or comparison points for similar flight training contracts, a precise value assessment is difficult. The duration suggests a long-term commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the long duration and specific nature of flight training might limit the number of truly competitive bids.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers. The final cost effectiveness depends on the pricing achieved during the bidding process.
Public Impact
Ensures continued flight training for Air Force personnel. Supports advanced aviation capabilities and pilot readiness. Impacts the defense industrial base and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation.
- Lack of specific performance metrics makes value assessment difficult.
- Sole awardee for an extended period could reduce future competition.
Positive Signals
- Awarded through full and open competition.
- Provides essential services for national defense.
- Long-term planning allows for stable training operations.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized training services. Spending benchmarks for flight training can vary widely based on aircraft type, duration, and complexity.
Small Business Impact
The data indicates this contract was awarded to a large corporation (Lockheed Martin) and does not show any specific set-asides or participation from small businesses.
Oversight & Accountability
Oversight would typically involve regular performance reviews and financial audits by the Department of Defense to ensure contract compliance and value for money throughout its duration.
Related Government Programs
- Flight Training
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration
- Lack of detailed performance metrics
- Potential for price creep over time
- Limited visibility into specific training outcomes
Tags
flight-training, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.4 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 $30.4 million.
What is the period of performance?
Start: 2006-07-17. End: 2015-12-31.
What was the average annual cost of this flight training contract, and how does it compare to industry benchmarks for similar services?
The total award was $303,889,350 over approximately 9.5 years (July 2006 to December 2015). This averages to roughly $31.9 million per year. Direct comparison to industry benchmarks is challenging without knowing the specific training platforms, student numbers, and curriculum complexity. However, this annual figure provides a basis for future cost-benefit analyses and comparisons with other training contracts.
What were the key performance indicators (KPIs) for this contract, and how was Lockheed Martin's performance measured against them?
The provided data does not specify the key performance indicators (KPIs) or the performance evaluation metrics used for this contract. Typically, flight training contracts would include metrics related to pilot proficiency, training completion rates, safety records, and adherence to curriculum standards. Without these details, assessing the effectiveness and quality of the training provided is not possible from this data alone.
Given the full and open competition, what was the rationale for awarding the contract to a single entity for such a long duration?
Awarding a flight training contract through full and open competition to a single entity for a long duration often stems from the need for specialized infrastructure, unique training systems, or established expertise that only one or a few contractors can provide. This ensures continuity and potentially deeper integration of training capabilities, though it necessitates careful contract management to maintain competitive pressure and value.
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, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365701D2072
IDV Type: IDC
Timeline
Start Date: 2006-07-17
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2013-10-22
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