DoD Awards $166M for Aircraft Engine Support to Lockheed Martin, Highlighting Manufacturing Sector
Contract Overview
Contract Amount: $166,113,515 ($166.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-03-10
End Date: 2024-03-31
Contract Duration: 387 days
Daily Burn Rate: $429.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509754486!AF GEN III SUPPORT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $166.1 million to LOCKHEED MARTIN CORPORATION for work described as: 8509754486!AF GEN III SUPPORT Key points: 1. Significant contract value of $166.1M for critical aircraft engine support. 2. Lockheed Martin, a major defense contractor, is the sole awardee. 3. Potential risk associated with single-source award for specialized parts. 4. Spending aligns with the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: good
The contract value of $166.1M appears reasonable for specialized aircraft engine support, given the complexity and critical nature of the components. Benchmarking against similar long-term support contracts for advanced aircraft engines would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and ensure the government receives the best value. The specific price discovery mechanisms within the firm-fixed-price structure are key.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense readiness, ensuring operational capabilities for aircraft. The competitive award aims to maximize the value of this investment.
Public Impact
Ensures continued operational readiness of critical military aircraft. Supports jobs within the aerospace and defense manufacturing sector. Highlights the importance of specialized parts and maintenance for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation in future orders if competition is not maintained.
- Dependence on a single contractor for critical engine parts.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type helps control costs.
- Supports critical defense infrastructure.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending in this area is essential for maintaining advanced military platforms and reflects the high costs associated with specialized aerospace technology.
Small Business Impact
The awardee, Lockheed Martin Corporation, is a large defense contractor. There is no indication in the provided data that small businesses were directly involved as subcontractors or prime contractors in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The Defense Logistics Agency is responsible for this award, indicating established oversight processes for defense procurement. The firm-fixed-price structure and competitive award method suggest adherence to standard accountability measures for ensuring value for taxpayer money.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole awardee for critical support services.
- Potential for long-term contractor dependency.
- Lack of immediate alternative suppliers for specialized parts.
- Complexity of advanced aircraft engine maintenance.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $166.1 million to LOCKHEED MARTIN CORPORATION. 8509754486!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 $166.1 million.
What is the period of performance?
Start: 2023-03-10. End: 2024-03-31.
What is the historical performance of Lockheed Martin in fulfilling similar aircraft engine support contracts, and how does it compare to industry benchmarks?
Assessing Lockheed Martin's past performance on comparable contracts is crucial. This includes evaluating on-time delivery rates, quality of parts and services, and adherence to budget. Comparing these metrics against industry averages for aircraft engine support can reveal potential risks or confirm the contractor's reliability and cost-effectiveness for this significant $166.1M award.
What specific engine components or support services are covered under this contract, and are there viable alternatives or potential substitutes available?
Understanding the precise scope of 'AF GEN III SUPPORT' is vital for risk assessment. If the contract covers highly specialized, proprietary components with limited or no alternative suppliers, it increases the risk of price gouging and supply chain disruptions. Identifying potential substitutes or alternative support providers, even if requiring re-certification, is key to mitigating long-term dependency.
How does the awarded price of $166.1M compare to the government's independent cost estimates or previous contract awards for similar engine support services?
A thorough comparison of the $166.1M award against the government's baseline estimate and historical pricing for analogous contracts is essential for evaluating value. Significant deviations could signal issues with the bidding process, market fluctuations, or the contractor's pricing strategy. This analysis helps determine if taxpayers are receiving a fair price for the critical aircraft engine support.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $166,113,515
Exercised Options: $166,113,515
Current Obligation: $166,113,515
Actual Outlays: $72,569,833
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4AX17D9006
IDV Type: IDC
Timeline
Start Date: 2023-03-10
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2023-12-07
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