Air Force awards $16.3M contract for aircraft fixed wing services to Lockheed Martin Corporation

Contract Overview

Contract Amount: $16,358,696 ($16.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2005-11-03

End Date: 2009-10-31

Contract Duration: 1,458 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200606!000060!5700!FA8615!ASC/YPK !F4262001D0058 !A!N! !N!SC78 ! !20051103!20060531!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000004296911!N!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!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to LOCKHEED MARTIN CORPORATION for work described as: 200606!000060!5700!FA8615!ASC/YPK !F4262001D0058 !A!N! !N!SC78 ! !20051103!20060531!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARR… Key points: 1. The contract is for aircraft fixed wing services, specifically airframes and spares. 2. The awardee is Lockheed Martin Corporation, a major defense contractor. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Defense, with a significant portion of spending in Engineering Services.

Value Assessment

Rating: fair

The contract value is $16.3 million. Without specific per-unit cost data or benchmarks for similar aircraft fixed wing services, a precise value assessment is difficult. However, the contract type (Cost Plus Incentive Fee) suggests potential for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices as there is no competitive pressure to drive down costs. The government may not have achieved the best possible price.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these aircraft services.

Public Impact

This award impacts the defense industrial base, specifically supporting aircraft maintenance and readiness. The sole-source nature of the award could limit opportunities for smaller, innovative businesses to compete. The long duration of the contract (over 4 years) suggests a sustained need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Incentive Fee contract type
Potential for cost overruns

Positive Signals

Award to a known, established contractor
Supports critical defense needs

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft maintenance and component needs. Engineering services for defense applications are a significant area of government spending, often involving complex and specialized requirements.

Small Business Impact

The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication in the data whether small businesses were involved as subcontractors on this specific award.

Oversight & Accountability

The contract type (Cost Plus Incentive Fee) requires careful oversight to ensure cost control and performance. The Department of Defense's contracting officers are responsible for monitoring expenditures and ensuring the contractor meets performance targets.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns due to CPIF contract type
Limited transparency on specific deliverables
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to LOCKHEED MARTIN CORPORATION. 200606!000060!5700!FA8615!ASC/YPK !F4262001D0058 !A!N! !N!SC78 ! !20051103!20060531!008016958!008016958!834951691!N!LOCKHEED MARTIN CORPORATION !LOCKHEED BLVD !FORT WORTH !TX!76108!27000!439!48!FORT WORTH !TARRANT !TEXAS !+000004296911!N!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 $16.4 million.

What is the period of performance?

Start: 2005-11-03. End: 2009-10-31.

What specific aircraft models or systems does this contract support, and how does the $16.3 million value compare to historical spending on similar support services?

The data indicates the contract is for 'AIRCRAFT FIXED WING' and 'AIRFRAMES AND SPARES'. Without more granular detail on the specific aircraft or the nature of the spares, a direct comparison to historical spending is challenging. However, $16.3 million over approximately four years for major airframe components and spares suggests a substantial, ongoing support requirement for a significant fleet.

Given the sole-source nature, what mechanisms are in place to ensure Lockheed Martin is not overcharging for these critical aircraft components and services?

As a Cost Plus Incentive Fee (CPIF) contract, the pricing is subject to negotiation and includes incentives for cost savings. The government likely relies on cost realism analyses, should-cost studies, and performance metrics to manage the contractor's pricing and ensure fair value. However, the absence of competition inherently reduces the government's leverage in price negotiations.

How does this contract contribute to the overall readiness and operational effectiveness of the Air Force's fixed-wing aircraft fleet?

This contract directly supports the sustainment of the Air Force's fixed-wing aircraft by providing essential airframes and spares. Ensuring the availability of these components is crucial for maintaining aircraft airworthiness, reducing downtime, and ultimately supporting the operational readiness and effectiveness of the fleet for its intended missions.

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

Financial Breakdown

Contract Ceiling: $30,932

Exercised Options: $30,932

Current Obligation: $16,358,696

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F4262001D0058

IDV Type: IDC

Timeline