DoD Awards $135M Contract to Lockheed Martin for Aircraft Fixed Wing Services

Contract Overview

Contract Amount: $135,196,425 ($135.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2006-02-08

End Date: 2011-12-31

Contract Duration: 2,152 days

Daily Burn Rate: $62.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200607!000091!5700!FA8615!ASC/YPK !F4262001D0058 !A!N! !N!SC76 ! !20060208!20090930!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000005960252!Y!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!S! ! ! !99990909!B! ! !N!Z!D!N!V!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $135.2 million to LOCKHEED MARTIN CORPORATION for work described as: 200607!000091!5700!FA8615!ASC/YPK !F4262001D0058 !A!N! !N!SC76 ! !20060208!20090930!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARR… Key points: 1. Significant contract awarded to a major defense contractor. 2. Focus on aircraft airframes and spares suggests long-term fleet support. 3. Cost-plus contract type may lead to cost overruns. 4. Limited competition raises questions about price discovery and value. 5. Texas-based award potentially benefits regional economy.

Value Assessment

Rating: questionable

The contract value of $135M for engineering services related to aircraft fixed wing is substantial. Without specific benchmarks for similar airframe support contracts, it's difficult to definitively assess value. However, the cost-plus contract type often indicates higher risk for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This method can be efficient for specialized needs but may result in higher prices due to a lack of competitive pressure and potentially less rigorous price discovery.

Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible price for these services.

Public Impact

Supports critical Department of Defense aviation assets. Ensures continued operation and maintenance of fixed-wing aircraft. Potential for job creation and economic activity in Texas. Long-term nature of the contract implies ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus contract type
Lack of specific performance metrics in provided data

Positive Signals

Award to established prime contractor
Supports critical defense assets
Long-term contract duration

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting fixed-wing aircraft. Defense spending in this area is crucial for maintaining military readiness. Benchmarks for similar large-scale, long-term aircraft support contracts are typically in the hundreds of millions to billions of dollars.

Small Business Impact

The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. The award is directly to a large prime contractor, Lockheed Martin.

Oversight & Accountability

The contract type (Cost Plus Incentive Fee) suggests some level of performance-based incentives, but detailed oversight mechanisms and accountability measures are not specified in the provided data. Further review of the contract terms would be needed.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns
Limited transparency on specific aircraft platforms
Unclear performance metrics and oversight details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $135.2 million to LOCKHEED MARTIN CORPORATION. 200607!000091!5700!FA8615!ASC/YPK !F4262001D0058 !A!N! !N!SC76 ! !20060208!20090930!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000005960252!Y!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!S! ! ! !999

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 $135.2 million.

What is the period of performance?

Start: 2006-02-08. End: 2011-12-31.

What specific aircraft platforms does this contract support, and what is the historical cost performance for these platforms?

The data indicates 'AIRCRAFT FIXED WING' and 'AIRFRAMES AND SPARES' as the product service code and service description. Without knowing the specific platforms (e.g., F-35, C-130), it's impossible to assess historical cost performance. This information is crucial for understanding if the current $135M award represents good value or potential overspending compared to prior investments in similar support.

What were the justifications for not competing this contract, and were alternative sources considered?

The data states the contract was 'NOT COMPETED'. The justification for this approach is critical for assessing risk. Typically, sole-source or limited competition is used when only one source can provide the required service or item. Understanding the rationale behind this decision is key to determining if the government adequately explored options to ensure fair pricing and avoid potential monopolies.

How are cost efficiencies and performance improvements incentivized and measured under this Cost Plus Incentive Fee (CPIF) contract?

A CPIF contract aims to share cost savings and overruns between the government and contractor. However, the effectiveness of this specific contract hinges on the defined target cost, incentive sharing ratios, and performance metrics. Without these details, it's difficult to gauge how well the contract encourages Lockheed Martin to control costs and improve performance, impacting overall taxpayer value.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1 LOCKHEED BLVD, FORT WORTH, TX, 76108

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F4262001D0058

IDV Type: IDC

Timeline