DoD Awards $35.3M for Aircraft Engines, Lockheed Martin Selected in Full and Open Competition
Contract Overview
Contract Amount: $35,275,620 ($35.3M)
Contractor: Kelly Aviation Center, L.P.
Awarding Agency: Department of Defense
Start Date: 2000-02-23
End Date: 2010-09-15
Contract Duration: 3,857 days
Daily Burn Rate: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200005!5700!000452!GF40 !SAN ANTONIO ALC/LPK !F3460199D0002 !A!*!SA01 !20000223!20000531!019603534!948604350!834951691!N!1FGL4!LOCKHEED MARTIN LOGISTICS MANA!7102 MOUNTAIN GRV !SAN ANTONIO !TX!78250!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !0001!+000017692701!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !3BSJ!TF-39 !3724!5!A!S!*!B!A!*!A !N!J!2!006!B!* !A!N!Z!* !* !Y!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78226, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $35.3 million to KELLY AVIATION CENTER, L.P. for work described as: 200005!5700!000452!GF40 !SAN ANTONIO ALC/LPK !F3460199D0002 !A!*!SA01 !20000223!20000531!019603534!948604350!834951691!N!1FGL4!LOCKHEED MARTIN LOGISTICS MANA!7102 MOUNTAIN GRV !SAN ANTONIO !TX!78250!65000!029!48!SAN ANTONIO !BEX… Key points: 1. Significant contract value of $35.3 million for aircraft engines. 2. Awarded under full and open competition, indicating market availability. 3. Potential risk associated with long contract duration (2000-2010). 4. Sector focus on Aircraft Engine Manufacturing, a critical defense component.
Value Assessment
Rating: good
The contract value of $35.3 million for aircraft engines appears reasonable given the 10-year duration. Benchmarking against similar, long-term engine contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors were considered. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of this award likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
Ensures continued availability of critical aircraft engine components for military operations. Supports the defense industrial base and associated manufacturing jobs. Long-term nature of the contract may indicate a stable demand for these specific engine parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2000-2010) could lead to price escalation or obsolescence risks.
- Reliance on a single awardee for a critical component over a decade.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contract supports a vital defense manufacturing sector.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a key area for defense readiness. Spending in this sector is often characterized by high R&D costs and long product lifecycles.
Small Business Impact
The data does not indicate specific participation or subcontracting by small businesses. Further analysis would be needed to determine the extent of small business involvement in this contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the long duration warrants ongoing monitoring for performance and cost control.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (10 years)
- Potential for price escalation over the contract term
- Risk of technological obsolescence
- Dependence on a single awardee for critical components
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.3 million to KELLY AVIATION CENTER, L.P.. 200005!5700!000452!GF40 !SAN ANTONIO ALC/LPK !F3460199D0002 !A!*!SA01 !20000223!20000531!019603534!948604350!834951691!N!1FGL4!LOCKHEED MARTIN LOGISTICS MANA!7102 MOUNTAIN GRV !SAN ANTONIO !TX!78250!65000!029!48!SAN ANTONIO !BEXAR !TEXAS !0001!+000017692701!N!N!000000000000!2840!GAS TURBINES AND JET ENGINES, ACFT & COMPS !A1B!AIRCRAFT ENGINES AND SPARES !3BSJ!TF-39 !3724!5!A!S!*!B!A!*!A !N!J!
Who is the contractor on this award?
The obligated recipient is KELLY AVIATION CENTER, L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $35.3 million.
What is the period of performance?
Start: 2000-02-23. End: 2010-09-15.
What was the specific type of aircraft engine or component procured, and how critical is it to current military aviation fleets?
The contract specifies 'GAS TURBINES AND JET ENGINES, ACFT & COMPS' and 'AIRCRAFT ENGINES AND SPARES' with a specific part number 'TF-39'. The TF-39 engine is known for its use in heavy-lift aircraft like the C-5 Galaxy. Its criticality lies in maintaining the operational readiness of these strategic airlift assets, which are essential for global power projection and logistical support.
Given the 2000-2010 contract period, what were the potential risks related to technological obsolescence or evolving military requirements?
A decade-long contract for complex aerospace components like jet engines carries inherent risks of technological obsolescence. Military requirements can also shift significantly over such a period due to geopolitical changes or new doctrine. The government would need robust contract clauses for managing upgrades, modifications, or potential early termination if requirements changed drastically or superior technology emerged.
How does the awarded price of $35.3 million compare to industry benchmarks for similar engine procurements over that timeframe?
Without specific details on the quantity, model, and exact specifications of the TF-39 engines or spares procured, a precise benchmark comparison is challenging. However, given the TF-39's role in large military aircraft, $35.3 million spread over ten years for potentially numerous components or overhauls suggests a moderate annual expenditure. Further analysis would require access to historical pricing data for similar defense aerospace contracts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3523 GENERAL HUDNELL DR STE 213, SAN ANTONIO, TX, 78226
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: F3460199D0002
IDV Type: IDC
Timeline
Start Date: 2000-02-23
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2015-08-24
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