DoD awards $44.2M for Aircraft Engine Support to Lockheed Martin, highlighting firm fixed-price contract
Contract Overview
Contract Amount: $44,212,902 ($44.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-30
End Date: 2018-06-30
Contract Duration: 92 days
Daily Burn Rate: $480.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8505352956!AF GEN III SUPPORT
Place of Performance
Location: MIDDLE RIVER, BALTIMORE County, MARYLAND, 21220
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $44.2 million to LOCKHEED MARTIN CORPORATION for work described as: 8505352956!AF GEN III SUPPORT Key points: 1. Contract value of $44.2M for aircraft engine support. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. Full and open competition was utilized. 4. Contract duration of 92 days. 5. Sector is Aircraft Engine and Engine Parts Manufacturing.
Value Assessment
Rating: good
The contract value of $44.2M for a 92-day delivery order appears reasonable given the specialized nature of aircraft engine support. Benchmarking against similar complex defense contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The competitive bidding process likely ensured taxpayer funds were used efficiently for this critical defense support.
Public Impact
Ensures operational readiness of aircraft by providing essential engine support. Supports the Department of Defense's aviation capabilities. Contributes to the defense industrial base through a major contractor award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may indicate a specific, time-sensitive need.
- Reliance on a single large contractor for critical support.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition promotes market efficiency.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Engine and Engine Parts Manufacturing. Spending in this area is critical for maintaining military aviation readiness and is often characterized by high-value, specialized contracts.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses in this particular contract award. Further analysis would be needed to determine if subcontracting opportunities were available.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Logistics Agency, indicating established oversight mechanisms. The use of full and open competition suggests adherence to procurement regulations.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Short contract duration.
- Potential for sole-source follow-on.
- High value awarded to a single large contractor.
- Lack of small business participation noted.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.2 million to LOCKHEED MARTIN CORPORATION. 8505352956!AF GEN III SUPPORT
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $44.2 million.
What is the period of performance?
Start: 2018-03-30. End: 2018-06-30.
What is the historical cost performance for similar aircraft engine support contracts awarded by the DoD?
Historical cost performance for similar contracts is crucial for assessing value. Analyzing past awards for comparable engine support services, considering factors like contract type, duration, and specific engine models, can reveal cost trends. This allows for a more informed evaluation of whether the $44.2M award represents a fair market price or if there are indications of overspending or significant savings.
What are the potential risks associated with a short, 92-day contract duration for critical engine support?
A short duration like 92 days for critical engine support could pose risks such as potential disruptions if follow-on contracts are delayed, or if the vendor faces unforeseen challenges within the limited timeframe. It might also indicate a stop-gap measure, potentially leading to less efficient long-term planning or higher per-unit costs compared to a longer-term, more stable contract.
How effectively did the 'full and open competition' process ensure optimal value and technical solution for this specific engine support requirement?
The effectiveness of 'full and open competition' hinges on the number and quality of bids received. While the process itself is designed to maximize value and find the best technical solution, a thorough review of the bidding landscape and the selection criteria used would be necessary. Understanding if multiple capable vendors participated and how the winning bid was justified against alternatives provides insight into the actual effectiveness.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2323 EASTERN BLVD, BALTIMORE, MD, 21220
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,212,902
Exercised Options: $44,212,902
Current Obligation: $44,212,902
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4AX17D9006
IDV Type: IDC
Timeline
Start Date: 2018-03-30
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2019-03-28
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