Lockheed Martin awarded $17.3M for engineering services, with a significant portion for A-10 aircraft support

Contract Overview

Contract Amount: $17,343,563 ($17.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2003-03-21

End Date: 2010-09-16

Contract Duration: 2,736 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200306!000088!5700!GE35 !OO-ALC/PKC/LCK !F0460698D0002 !A!N! !N!QPA6 !20030321!20050930!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE RT 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000001025641!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3AAK!A-10 !541710!E! !5!B!S!B! ! !99990909!B! ! !A! !A!N!R!2!002!B! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200306!000088!5700!GE35 !OO-ALC/PKC/LCK !F0460698D0002 !A!N! !N!QPA6 !20030321!20050930!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE RT 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA… Key points: 1. Contract value of $17.3M for engineering and technical services. 2. Significant portion of the contract allocated to A-10 aircraft support. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. Contract type is Cost Plus Award Fee, which incentivizes performance. 5. Performance period spans over 7 years, from March 2003 to September 2010. 6. The contractor, Lockheed Martin Corporation, is a major defense industry player. 7. Services are categorized under Engineering Services and Other Aircraft Equipment. 8. The contract was managed by the Defense Contract Management Agency.

Value Assessment

Rating: good

The contract value of $17.3 million for engineering and technical services over a 7-year period appears reasonable, especially considering the specialized nature of defense-related aircraft support. Benchmarking against similar contracts for engineering services for major aircraft platforms would provide a more precise value assessment. The Cost Plus Award Fee (CPAF) structure suggests an expectation of performance-based incentives, which can lead to better value if managed effectively. However, without specific performance metrics and award fee payouts, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The presence of two bids indicates a moderate level of competition for this specialized engineering service. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions. However, for highly specialized defense contracts, a limited number of qualified bidders is not uncommon.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially better service offerings, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating and maintaining the A-10 aircraft, ensuring their continued operational readiness. Services delivered include essential engineering and technical support, likely encompassing design, analysis, testing, and sustainment activities. The geographic impact is primarily centered around the contractor's facilities in Owego, NY, and potentially at various Air Force bases where A-10s are stationed. Workforce implications include employment for engineers, technicians, and support staff at Lockheed Martin, contributing to the skilled labor force in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not closely monitored, as the contractor is reimbursed for costs plus a fee that can be adjusted based on performance.
The long performance period (over 7 years) increases the risk of scope creep or changes in requirements that may not be adequately captured in the initial contract.
Reliance on a single large contractor for critical engineering services could pose a risk if the contractor faces financial difficulties or strategic shifts.
The specific nature of A-10 support might be subject to evolving defense priorities and budget constraints, potentially impacting the long-term need for these services.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
The Cost Plus Award Fee structure incentivizes contractor performance and efficiency, potentially leading to higher quality outcomes.
Lockheed Martin is a well-established defense contractor with a proven track record in aerospace engineering, suggesting a high likelihood of successful service delivery.
The contract specifies engineering and technical services, indicating a focus on specialized expertise crucial for maintaining complex defense systems like the A-10.
The contract duration allows for sustained support and development, fostering a stable environment for critical aircraft sustainment.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on engineering services for aircraft sustainment. The market for defense engineering services is substantial, driven by the need to maintain and modernize aging military fleets. Comparable spending benchmarks would involve analyzing other contracts for similar engineering support for major aircraft platforms, such as fighter jets or bombers. The $17.3 million value is moderate for a multi-year engineering support contract within this sector.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The prime contractor, Lockheed Martin Corporation, is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether Lockheed Martin actively seeks small business subcontractors for specialized services or components related to this contract.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. The Cost Plus Award Fee (CPAF) structure implies performance monitoring and evaluation to determine award fees. Transparency would be enhanced by public reporting of performance metrics and award fee determinations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

A-10 Thunderbolt II Sustainment Programs
Defense Engineering Services Contracts
Aircraft Maintenance and Repair Contracts
Aerospace Component Manufacturing
Military Aircraft Modernization Programs

Risk Flags

Long contract duration
Cost Plus Award Fee structure
Sole reliance on a single large contractor for critical services
Potential for scope creep
Aging aircraft platform support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to LOCKHEED MARTIN CORPORATION. 200306!000088!5700!GE35 !OO-ALC/PKC/LCK !F0460698D0002 !A!N! !N!QPA6 !20030321!20050930!002232973!002232973!834951691!N!LOCKHEED MARTIN CORPORATION !1801 STATE RT 17C !OWEGO !NY!13827!55882!107!36!OWEGO !TIOGA !NEW YORK !+000001025641!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3AAK!A-10 !541710!E! !5!B!S!B! ! !99990909!B

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 $17.3 million.

What is the period of performance?

Start: 2003-03-21. End: 2010-09-16.

What is Lockheed Martin's track record with similar engineering services contracts for the U.S. Air Force?

Lockheed Martin Corporation has an extensive and well-documented track record of providing engineering, logistics, and sustainment services for numerous U.S. Air Force platforms, including fighter jets, bombers, and transport aircraft. They are a primary contractor for many major defense systems. Their history includes managing complex, long-term support contracts that require deep technical expertise and program management capabilities. While specific performance metrics for past contracts are often proprietary or detailed in internal reviews, their continued selection for significant defense contracts suggests a generally positive performance history and a strong relationship with the Department of Defense. Analyzing past contract awards, performance evaluations (if publicly available), and any significant contract disputes or successes would provide a more granular understanding of their capabilities and reliability in delivering engineering services.

How does the $17.3 million contract value compare to other engineering services contracts for aircraft support?

The $17.3 million contract value for engineering and technical services over a period of approximately 7.5 years is considered moderate within the defense sector for supporting a major aircraft platform like the A-10. Larger, more comprehensive sustainment contracts for active fighter fleets can range from tens to hundreds of millions of dollars annually. However, this contract appears to focus on specific engineering and technical services rather than full-scope depot maintenance or lifecycle support. To provide a precise comparison, one would need to benchmark against contracts with similar scope (e.g., specific system engineering, avionics support, structural analysis) for comparable aircraft types (e.g., other legacy platforms requiring ongoing technical expertise). The value is influenced by the complexity of the systems, the level of technical expertise required, and the duration of the support.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for this type of service?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for engineering services are related to cost control and the potential for contractor inefficiency. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that is composed of a base fee (typically a small percentage of estimated costs) and an award fee. The award fee is earned based on the contractor's performance against pre-defined criteria. The risk for the government is that the contractor may not be sufficiently motivated to control costs if the award fee criteria are not stringent or if the performance metrics are not well-defined and measurable. This can lead to costs exceeding initial estimates. Conversely, if the award fee criteria are too aggressive or subjective, it could demotivate the contractor. Effective oversight by the contracting officer and technical team is crucial to ensure that costs are reasonable and that the award fee truly reflects exceptional performance.

How has spending on A-10 support evolved over the years, and does this contract represent a significant shift?

Spending on A-10 support has evolved significantly over the years, reflecting the aircraft's extended service life and changing defense priorities. Initially, support focused on operational readiness and upgrades. As the A-10 has aged, spending has increasingly shifted towards sustainment, depot maintenance, and modernization efforts to keep the fleet viable. This $17.3 million contract, awarded in 2003 and ending in 2010, represents a specific block of engineering and technical services during a period when the A-10 was still a key component of the Air Force's close air support capabilities. It does not necessarily represent a major shift in overall spending but rather a component of the ongoing sustainment effort. Analyzing historical budget allocations for the A-10 program would reveal trends in overall spending, with specific contracts like this one contributing to the total sustainment cost.

What is the significance of the 'Other Aircraft Equipment' classification in this contract?

The 'Other Aircraft Equipment' classification (PSC code A1C) alongside 'Engineering Services' (NAICS 541330) suggests that this contract likely encompasses not only the provision of engineering expertise but also potentially the development, modification, or support of specific equipment or components related to the A-10 aircraft. This could include specialized tools, test equipment, modifications to existing systems, or the development of new sub-systems. It indicates a broader scope than pure consulting or design services, potentially involving hardware integration or specialized technical support that goes beyond theoretical engineering. This dual classification highlights the integrated nature of modern defense contracting, where services and related equipment support are often bundled to ensure comprehensive program execution.

What does the 'Owego, NY' location signify for this contract?

The location 'Owego, NY' signifies the primary performance site or the headquarters of the contractor, Lockheed Martin Corporation, for this specific contract. Owego, New York, is a known hub for Lockheed Martin's aerospace and defense operations, particularly related to aircraft programs. This indicates that a significant portion of the engineering and technical work, as well as potentially the management of the contract, was conducted at this facility. The geographic concentration of work can have implications for local employment and economic impact within the Tioga County region of New York. It also suggests that the necessary infrastructure, specialized personnel, and facilities required for these engineering services are available at this Lockheed Martin site.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1801 STATE RT 17 C, OWEGO, NY, 23

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F0460698D0002

IDV Type: IDC

Timeline