DoD Awards $170M Firm Fixed Price Contract to Lockheed Martin for Aircraft Structural Components
Contract Overview
Contract Amount: $16,972,537 ($17.0M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-06-18
End Date: 2012-01-05
Contract Duration: 2,757 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200410!000163!5700!GE37 !OO-ALC/LGFD !F0960301D0207 !A!N! !N!QP25 ! !20040618!20070731!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!00000! !DA!* !* !DENMARK !+000009002297!Y!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!M! !C!C!20060920!B! ! !N!Z!D!U!J!2!001!N!1A!Z!Y!Z!B!DA!N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $17.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200410!000163!5700!GE37 !OO-ALC/LGFD !F0960301D0207 !A!N! !N!QP25 ! !20040618!20070731!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!00000! !DA!* !* … Key points: 1. The contract, valued at $169.7 million, is for aircraft structural components. 2. Lockheed Martin Integrated Systems, LLC, is the sole awardee under full and open competition. 3. The contract duration is 2757 days, spanning from June 2004 to January 2012. 4. This award falls under the Aircraft Manufacturing sector, with a Product Service Code of 336411.
Value Assessment
Rating: good
The contract value of $169.7 million appears reasonable for a long-term, complex defense procurement. Benchmarking against similar large-scale aircraft component contracts would provide a more 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. However, the specific details of the price discovery mechanism are not provided, making it difficult to fully assess its effectiveness.
Taxpayer Impact: The significant contract value indicates a substantial taxpayer investment, with the expectation of receiving high-quality aircraft components in return.
Public Impact
Ensures continued availability of critical aircraft structural components for the Department of Defense. Supports a major defense contractor, potentially impacting jobs and the aerospace supply chain. Long-term nature of the contract suggests a sustained need for these components. The award contributes to the overall readiness and operational capability of military aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing breakdown for unit costs.
- Limited information on the specific competitive process and evaluation criteria.
- Potential for cost overruns in long-term fixed-price contracts if not managed effectively.
Positive Signals
- Awarded under full and open competition, indicating market engagement.
- Firm Fixed Price contract type aims to control costs.
- Long contract duration suggests a stable, long-term requirement.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is a significant part of the broader aerospace and defense industry. Spending in this sector is often characterized by large, complex procurements with long lead times and high unit costs.
Small Business Impact
The data indicates this contract was awarded to a large corporation, Lockheed Martin. There is no explicit mention of small business participation or subcontracting goals within this specific award notice.
Oversight & Accountability
The contract was awarded by the Department of Defense, likely subject to standard oversight mechanisms for major defense procurements. Further details on specific oversight activities and accountability measures would require access to contract management documentation.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases exposure to economic fluctuations.
- Potential for scope creep if requirements are not clearly defined.
- Reliance on a single contractor for critical components.
- Lack of detailed cost breakdown hinders granular price analysis.
Tags
aircraft-manufacturing, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200410!000163!5700!GE37 !OO-ALC/LGFD !F0960301D0207 !A!N! !N!QP25 ! !20040618!20070731!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !NJ!20817!00000! !DA!* !* !DENMARK !+000009002297!Y!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!M! !C!C!200
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.0 million.
What is the period of performance?
Start: 2004-06-18. End: 2012-01-05.
What specific aircraft platforms are these structural components intended for, and how does their performance impact operational readiness?
The provided data does not specify the exact aircraft platforms. However, aircraft structural components are fundamental to the airworthiness and safety of any aircraft. Their performance directly impacts operational readiness by ensuring aircraft can fly safely and reliably. Failures or deficiencies in these components can lead to grounding of aircraft, mission delays, and increased maintenance costs, underscoring their critical role.
Given the firm fixed price nature, what mechanisms are in place to mitigate risks associated with potential material cost increases or unforeseen production challenges over the contract's long duratio
Firm fixed price contracts generally place the cost risk on the contractor. However, for long-term contracts, mitigation strategies might include carefully negotiated price adjustment clauses for specific economic factors, robust contractor quality assurance processes, and proactive government oversight to identify and address potential production issues early. The contractor is incentivized to manage their own costs efficiently to maintain profitability.
How does the $169.7 million award compare to historical spending on similar aircraft structural components, and what does this suggest about the efficiency of this procurement?
Without specific historical spending data for comparable aircraft structural components, a direct efficiency comparison is challenging. However, the award being under full and open competition suggests an attempt to achieve competitive pricing. The long duration and significant value indicate a substantial, long-term need, and the efficiency would be best assessed by comparing the unit price and overall value against industry benchmarks and previous contracts for similar items.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2004-06-18
Current End Date: 2012-01-05
Potential End Date: 2012-01-05 00:00:00
Last Modified: 2014-07-16
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