DoD awards $25.9M for Aircraft Engine Support to Lockheed Martin, highlighting manufacturing sector activity
Contract Overview
Contract Amount: $25,949,870 ($25.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-10-24
End Date: 2018-12-31
Contract Duration: 68 days
Daily Burn Rate: $381.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8506000028!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 $25.9 million to LOCKHEED MARTIN CORPORATION for work described as: 8506000028!AF GEN III SUPPORT Key points: 1. Significant contract value for specialized aircraft engine support. 2. Lockheed Martin, a major defense contractor, is the awardee. 3. Potential risk associated with sole-source or limited competition for specialized parts. 4. Contract falls within the Defense sector, specifically Aircraft Engine Manufacturing.
Value Assessment
Rating: good
The award amount of $25.9M appears reasonable for specialized aircraft engine support. Benchmarking against similar contracts for complex aerospace components would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible price and quality.
Public Impact
Ensures continued operational readiness for military aircraft engines. Supports a key segment of the aerospace manufacturing industry. Contributes to the supply chain for critical defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation in future contract modifications.
- Dependence on a single supplier for critical engine parts.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense readiness.
Sector Analysis
This contract is within the Defense sector, specifically supporting aircraft engine manufacturing. Spending in this area is crucial for maintaining military aviation capabilities and reflects the high-value, specialized nature of defense industrial production.
Small Business Impact
The data indicates this contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses within this large prime contract would be beneficial.
Oversight & Accountability
The award was made by the Defense Logistics Agency, a key component of DoD oversight for supply chain management. Further review of performance metrics and quality assurance would assess accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- High contract value.
- Specialized technical requirements.
- Potential for sole-source follow-on contracts.
- Dependence on a single prime contractor.
- Critical component for military readiness.
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 $25.9 million to LOCKHEED MARTIN CORPORATION. 8506000028!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 $25.9 million.
What is the period of performance?
Start: 2018-10-24. End: 2018-12-31.
What is the long-term cost-effectiveness of this contract given the specialized nature of aircraft engine support?
The long-term cost-effectiveness hinges on the durability and reliability of the supported engines and the efficiency of the maintenance provided. While the initial award is for a defined period, ongoing support costs and potential for component obsolescence are factors. Regular performance reviews and competitive re-solicitation at contract end are crucial for ensuring sustained value.
What are the primary risks associated with relying on Lockheed Martin for this specific engine support?
Key risks include potential vendor lock-in, limited leverage in future negotiations due to specialized knowledge, and the impact of any supply chain disruptions affecting Lockheed Martin. Ensuring robust contract terms, performance metrics, and contingency planning can mitigate these risks.
How effectively does this contract contribute to the overall readiness and operational capability of the DoD's aircraft fleet?
This contract directly contributes to readiness by ensuring the proper functioning and maintenance of critical aircraft engines. Its effectiveness is measured by the uptime of the supported aircraft, the quality of repairs, and the timely availability of parts and services, all of which are vital for maintaining operational capability.
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: $25,949,870
Exercised Options: $25,949,870
Current Obligation: $25,949,870
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: 2018-10-24
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2019-03-28
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