DoD awards $151.4M for aircraft component testing, with Lockheed Martin securing the contract
Contract Overview
Contract Amount: $15,142,344 ($15.1M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-04-19
End Date: 2009-10-31
Contract Duration: 1,291 days
Daily Burn Rate: $11.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TAS::57 3400::TAS 200608!001515!5700!FA8201!OO-ALC/PKQ !F0960301D0207 !A!N! !Y!R202 ! !20060419!20070419!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!35410!011!49!HILL AFB !DAVIS !UTAH !+000001586888!N!N!000000000000!H216!EQUIP&MATS TESTING/AIRCRAFT COMPS&ACCYS !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3!B!S! ! ! !99990909!B! ! !A! !A!N!U!2!005!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $15.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: TAS::57 3400::TAS 200608!001515!5700!FA8201!OO-ALC/PKQ !F0960301D0207 !A!N! !Y!R202 ! !20060419!20070419!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!35410!011!49!HILL AF… Key points: 1. The contract value represents a significant investment in ensuring the operational readiness of aircraft components. 2. Competition dynamics for this contract are not fully detailed, but the award was made under full and open competition. 3. Key risk indicators include the duration of the contract and the specialized nature of the testing services required. 4. Performance context suggests a need for rigorous testing to maintain high standards for defense equipment. 5. This contract falls within the broader Defense sector, specifically supporting aircraft manufacturing and maintenance.
Value Assessment
Rating: good
The total award of $151.4 million over approximately 5 years appears reasonable for specialized aircraft component testing services. Benchmarking against similar contracts for testing and evaluation of complex defense systems is necessary for a definitive value assessment. However, the firm-fixed-price nature of the contract suggests that the government has a clear understanding of the scope and cost, which can lead to better cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of multiple bidders generally fosters price discovery and encourages competitive pricing. While the specific number of bids received is not detailed, the 'full and open' designation suggests a robust competitive environment.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government by driving down prices and improving service quality.
Public Impact
The primary beneficiaries are the Department of Defense and its various branches, ensuring the airworthiness and reliability of aircraft. Services delivered include essential testing and evaluation of aircraft components and accessories. The geographic impact is centered around Hill Air Force Base in Utah, a key logistics and maintenance hub. Workforce implications include support for specialized technical personnel involved in testing and analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if testing requirements evolve beyond initial scope.
- Reliance on a single contractor for critical testing services could pose supply chain risks.
- Ensuring consistent quality and adherence to stringent military specifications throughout the contract duration.
Positive Signals
- Awarded under full and open competition, suggesting a competitive pricing environment.
- Firm-fixed-price contract type provides cost certainty for the government.
- Long-term nature of the contract allows for sustained focus on critical testing needs.
Sector Analysis
This contract operates within the Defense Industrial Base, specifically supporting the sustainment and readiness of military aviation assets. The market for aircraft component testing is specialized, requiring advanced technical expertise and adherence to strict regulatory and quality standards. Comparable spending benchmarks would involve other contracts for similar testing, evaluation, and support services for military aircraft, often awarded by agencies like the Air Force, Navy, and Army.
Small Business Impact
The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. Analysis of small business participation would require further investigation into the contractor's subcontracting plan and adherence to federal small business goals.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which ensures contractor compliance with terms and conditions. Accountability measures are embedded in the firm-fixed-price structure and performance requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.
Related Government Programs
- Aircraft Maintenance and Repair
- Aerospace Component Manufacturing
- Defense Logistics Support
- Military Aircraft Testing Services
Risk Flags
- Contract Duration
- Specialized Service Requirement
- Potential for Scope Creep
Tags
defense, aircraft-manufacturing, component-testing, lockheed-martin, department-of-defense, air-force, hill-air-force-base, firm-fixed-price, full-and-open-competition, sustainment, aerospace, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. TAS::57 3400::TAS 200608!001515!5700!FA8201!OO-ALC/PKQ !F0960301D0207 !A!N! !Y!R202 ! !20060419!20070419!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!35410!011!49!HILL AFB !DAVIS !UTAH !+000001586888!N!N!000000000000!H216!EQUIP&MATS TESTING/AIRCRAFT COMPS&ACCYS !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3
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 $15.1 million.
What is the period of performance?
Start: 2006-04-19. End: 2009-10-31.
What is the historical spending pattern for aircraft component testing services by the Department of Defense?
Historical spending on aircraft component testing services by the Department of Defense is substantial, reflecting the critical need to maintain the operational readiness and safety of its vast aviation fleet. While specific figures for 'aircraft component testing' as a distinct category can be difficult to isolate due to varied contract classifications, overall spending on aircraft sustainment, maintenance, repair, and overhaul (MRO) runs into billions of dollars annually. These expenditures encompass a wide range of services, including non-destructive testing, material analysis, performance validation, and component life-cycle management. The trend generally shows consistent, high levels of investment, with fluctuations tied to modernization programs, operational tempo, and budget allocations. Contracts like the one awarded to Lockheed Martin are integral parts of this larger sustainment ecosystem, ensuring that individual components meet stringent military specifications before and during deployment.
How does the pricing of this contract compare to similar aircraft component testing contracts?
Directly comparing the pricing of this $151.4 million contract to similar aircraft component testing contracts requires access to detailed pricing structures and scope of work for comparable awards. However, the firm-fixed-price (FFP) nature of this contract is a positive indicator for price predictability. FFP contracts generally shift the risk of cost overruns to the contractor, encouraging efficient performance. Benchmarking would involve analyzing the per-unit costs or labor rates against other DoD contracts for similar testing services, factoring in differences in complexity, technology used, and required certifications. Without specific comparative data, it's challenging to definitively state if the pricing is advantageous, but the competitive award process suggests an effort to secure market-based rates. The duration of the contract (over 5 years) also implies that the pricing reflects a long-term commitment, potentially offering economies of scale.
What are the primary risks associated with this contract for the government?
The primary risks for the government associated with this contract revolve around potential performance issues, cost overruns (despite the FFP structure, scope creep is a risk), and contractor dependency. If Lockheed Martin fails to meet the stringent testing standards or delivery schedules, it could impact aircraft readiness and operational capabilities. While FFP aims to control costs, unforeseen technical challenges or changes in testing requirements could lead to requests for contract modifications, potentially increasing the overall price. Furthermore, relying on a single contractor for such a critical function could create a dependency, making it difficult to switch providers if performance issues arise or if a more cost-effective solution becomes available. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.
What is the track record of Lockheed Martin in providing similar testing and evaluation services?
Lockheed Martin has an extensive and well-established track record in providing a wide array of defense-related services, including complex testing and evaluation for aerospace and defense systems. As a major prime contractor for numerous military platforms, including aircraft, the company possesses significant in-house capabilities and experience in ensuring component reliability and system integration. Their history includes managing large-scale sustainment contracts, conducting rigorous testing protocols, and adhering to stringent military specifications. While specific details of their performance on this particular contract (awarded in 2006) would require deeper analysis of performance reports and contract modifications, Lockheed Martin's overall standing as a leading defense contractor suggests a high level of expertise and capability in delivering such specialized services.
How does this contract contribute to the overall readiness and sustainment of U.S. Air Force aircraft?
This contract is crucial for the overall readiness and sustainment of U.S. Air Force aircraft by ensuring that critical components and systems meet rigorous performance and safety standards. Aircraft component testing validates the integrity, functionality, and reliability of parts before they are installed or while they are in service. This proactive approach helps prevent in-flight failures, reduces the likelihood of costly repairs due to component malfunction, and extends the operational lifespan of aircraft. By outsourcing these specialized testing services to a capable contractor like Lockheed Martin, the Air Force can focus its internal resources on core operational missions and maintenance activities, while still benefiting from expert-level assurance of component quality. The contract's duration suggests a long-term commitment to maintaining the airworthiness of the fleet.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6801 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2006-04-19
Current End Date: 2009-10-31
Potential End Date: 2009-10-31 00:00:00
Last Modified: 2021-10-06
More Contracts from Lockheed Martin Integrated Systems, LLC
- 200407!000098!5700!LA01 !11 Cons/Lgcw !FA701204C0003 !A!N! !N! ! !20031121!20130630!836196972!805258373!834951691!n!lockheed Martin Integrated SYS!6801 Rockledge Drive !bethesda !nj!20817!50000!001!11!washington !district of Columbia !D.C. !+000010350876!n!n!000530185344!d399!other Adp&telecommunication Services !S1 !services !000 !* !541690!A!B!3! ! ! ! ! !99990909!b!b!y!b! !a!n!l!2!007!b! !C!Y!F! ! !N!C!N! ! ! !b!z!a!a!000!a!b!n! ! ! !Y! ! !0001! ! — $679.5M (Department of Defense)
- 200611!007847!2100!w15p7t!usa Communications-Electronics !daab0703db009 !A!N! !Y!0243 ! !20060831!20110129!068514251!805258373!834951691!n!lockheed Martin Integrated SYS!1800 Route 34 !wall !nj!07719!76460!025!34!wall (township OF) !monmouth !NEW Jersey!+000077463827!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !NOT Discernable !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !N!C!N! ! ! !c!z!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $448.3M (Department of Defense)
- ISS Cargo Mission Contract (CMC) — $406.2M (National Aeronautics and Space Administration)
- THE Moses II Effort IS a Five-Year Sole-Source Follow-On Contract to Maintain the Health and Safety of the HST Observatory Through the Next Phase of ITS Science Mission. the Scope of This Follow-On Effort Includes Conducting ALL Elements of HST Operations Other Than Science Operations, and to Perform Systems Engineering Tasks Required to Properly Maintain HST Flight and Ground Systems.mission Operations Responsibilities Include Safe and Efficient Control and Utilization of the HST Observatory, Maintenance and Operation of Hst-Unique Facilities and Equipment, AS Well AS Creation, Maintenance, and Utilization of HST Operations Processes and Procedures. Critical Systems Engineering Responsibilities Consist of Optimizing Mission System Capabilities to Maximize HST Operations Effectiveness and Science Productivity. Essential Management Requirements Include Providing a Technical Staff Possessing In-Depth Knowledge of HST S Varied, Complex, and Unique Flight and Ground Systems, Ensuring Successful Accomplishment of the Diverse Tasks Necessary to Effectively Conduct HST Mission Operations and Systems Engineering AS Well AS to Manage and Report Contract Element Cost and Schedule Performance — $360.2M (National Aeronautics and Space Administration)
- Federal Contract — $304.3M (Department of Defense)
View all Lockheed Martin Integrated Systems, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)