DoD Awards $149M for Aircraft Engine Support to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $149,304,884 ($149.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-02-28
End Date: 2025-03-31
Contract Duration: 397 days
Daily Burn Rate: $376.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510475380!AF GEN III SUPPORT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $149.3 million to LOCKHEED MARTIN CORPORATION for work described as: 8510475380!AF GEN III SUPPORT Key points: 1. Significant contract value for critical aircraft engine support. 2. Lockheed Martin, a major defense contractor, is the awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over a year, indicating ongoing support needs.
Value Assessment
Rating: good
The contract value of $149M for a 13-month period appears reasonable given the specialized nature of aircraft engine support. Benchmarking against similar complex aerospace support 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, which typically drives down costs and ensures fair market pricing.
Taxpayer Impact: The competitive nature of this award is expected to yield a fair price, maximizing taxpayer value for essential defense support services.
Public Impact
Ensures continued operational readiness for critical aircraft engines. Supports the Department of Defense's aviation capabilities. Maintains a key supply chain for military aircraft maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term support contracts.
- Dependence on a single contractor for critical components.
Positive Signals
- Competitive award process.
- Clear contract duration and scope.
- Supports essential defense infrastructure.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft engine manufacturing and maintenance. Spending in this area is crucial for national security and readiness, with benchmarks often driven by technological complexity and long-term sustainment requirements.
Small Business Impact
The data indicates this award went to a large corporation (Lockheed Martin) and does not explicitly mention small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The use of full and open competition suggests a robust procurement process. However, ongoing oversight will be necessary to ensure contract performance, cost control, and adherence to delivery schedules.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration may increase risk of cost escalation.
- Potential for sole-source dependency if competitors are limited.
- Reliance on a single large prime contractor.
- Geographic concentration of awardee operations.
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 $149.3 million to LOCKHEED MARTIN CORPORATION. 8510475380!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 $149.3 million.
What is the period of performance?
Start: 2024-02-28. End: 2025-03-31.
What is the historical cost performance of similar aircraft engine support contracts awarded by the DoD?
Historical data on similar contracts is crucial for assessing value. Analyzing past performance, including cost overruns or savings, and comparing award prices against initial estimates for comparable engine support services can reveal trends. This context helps determine if the current $149M award is competitive and reflects efficient use of funds.
What are the specific risks associated with relying on Lockheed Martin for this critical engine support?
Risks include potential single-source dependency if competitors lack comparable capabilities, supply chain disruptions affecting Lockheed Martin, or performance issues impacting aircraft readiness. Evaluating Lockheed Martin's past performance on similar contracts, their financial stability, and contingency plans for unforeseen events are key to mitigating these risks.
How effectively does this contract contribute to the overall operational readiness of the targeted aircraft fleet?
The effectiveness hinges on timely delivery of parts, quality of service, and responsiveness to maintenance needs. Monitoring key performance indicators (KPIs) such as on-time delivery rates, defect rates, and aircraft availability metrics will provide insight. Successful execution ensures the fleet remains mission-capable, directly impacting defense objectives.
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: $149,304,884
Exercised Options: $149,304,884
Current Obligation: $149,304,884
Actual Outlays: $37,700,000
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: 2024-02-28
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2024-07-12
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