DoD awards $38.9M for Aircraft Engine Support to Lockheed Martin under Full and Open Competition
Contract Overview
Contract Amount: $38,928,513 ($38.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-12-12
End Date: 2019-03-31
Contract Duration: 109 days
Daily Burn Rate: $357.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8506125859!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 $38.9 million to LOCKHEED MARTIN CORPORATION for work described as: 8506125859!AF GEN III SUPPORT Key points: 1. Significant contract value for specialized aircraft engine support. 2. Awarded to a major defense contractor, indicating established capabilities. 3. Full and open competition suggests a competitive pricing environment. 4. Short contract duration (109 days) may indicate a specific, time-bound need.
Value Assessment
Rating: good
The contract value of $38.9M for a 109-day period 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 is a positive indicator for price discovery. It allows multiple qualified vendors to bid, driving down costs and ensuring the government receives competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized efficiently through a competitive bidding process, aiming to secure the best value for the required aircraft engine support services.
Public Impact
Ensures operational readiness of critical military aircraft. Supports the defense industrial base by engaging major contractors. Potential for follow-on contracts if performance is satisfactory.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration could lead to potential gaps in support if not managed proactively.
- Reliance on a single large contractor may limit future competition if not carefully managed.
Positive Signals
- Full and open competition utilized.
- Awarded to a known, capable contractor.
- Clear contract type (Firm Fixed Price) for cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft engine maintenance and parts. Spending in this area is critical for maintaining military readiness and is often characterized by high-value, specialized contracts with established industry players.
Small Business Impact
While this contract was awarded under full and open competition, there is no specific indication of small business participation in this particular award. Future solicitations could explore subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, a key component of the DoD responsible for supply chain management. Oversight would typically involve performance monitoring and adherence to contract terms.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Short contract duration may pose continuity risks.
- Potential for vendor lock-in if not managed.
- Dependence on a single large contractor.
- Lack of explicit 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 $38.9 million to LOCKHEED MARTIN CORPORATION. 8506125859!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 $38.9 million.
What is the period of performance?
Start: 2018-12-12. End: 2019-03-31.
What is the specific nature of the 'AF GEN III SUPPORT' and its criticality to current military operations?
AF GEN III SUPPORT likely refers to maintenance, repair, or parts for a specific generation of aircraft engines used by the Air Force. Its criticality stems from ensuring the operational readiness of these aircraft, which are vital for national security missions. Understanding the exact engine model and its operational tempo would clarify the precise level of importance and potential impact of any support disruption.
How does the $38.9M cost compare to historical spending on similar engine support contracts, and what factors justify this amount?
Benchmarking this $38.9M against historical data for similar 'AF GEN III' or comparable engine support contracts is crucial. Factors influencing the cost include the complexity of the engine, the required scope of work (e.g., depot-level maintenance, component overhaul, spare parts provisioning), the duration of the contract, and the competitive landscape. A higher cost might be justified by unique technical requirements or limited vendor availability.
What mechanisms are in place to ensure effective performance and accountability from Lockheed Martin given the short contract duration?
Despite the short 109-day duration, effective performance and accountability are managed through the contract's Firm Fixed Price (FFP) structure, which incentivizes cost control. The Defense Logistics Agency (DLA) will likely employ performance metrics, regular progress reviews, and quality assurance inspections. Clear deliverables and acceptance criteria within the contract are essential for holding the contractor accountable and ensuring taxpayer value.
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: $38,928,513
Exercised Options: $38,928,513
Current Obligation: $38,928,513
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: 2018-12-12
Current End Date: 2019-03-31
Potential End Date: 2019-03-31 00:00:00
Last Modified: 2019-04-13
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