DoD Awards $130M Contract for Aircraft Engine Support to Lockheed Martin
Contract Overview
Contract Amount: $129,927,629 ($129.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-17
End Date: 2026-03-31
Contract Duration: 379 days
Daily Burn Rate: $342.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511249145!AF GEN III SUPPORT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $129.9 million to LOCKHEED MARTIN CORPORATION for work described as: 8511249145!AF GEN III SUPPORT Key points: 1. Significant contract value highlights the importance of aircraft engine maintenance. 2. Lockheed Martin, a major defense contractor, secured this award. 3. Potential risks include reliance on a single large supplier for critical components. 4. Spending falls within the Defense sector, specifically aircraft parts manufacturing.
Value Assessment
Rating: good
The contract value of $129.9M for 379 days of support appears reasonable given the specialized nature of aircraft engine components and the prime contractor's established role. Benchmarking against similar complex aerospace support contracts 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 robust price discovery process. This method allows multiple qualified vendors to bid, potentially driving down costs and ensuring fair market value.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by fostering a competitive environment that can result in lower prices and higher quality services.
Public Impact
Ensures continued operational readiness for critical military aircraft. Supports high-skilled jobs within the aerospace and defense industry. Impacts the supply chain for specialized aircraft engine parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source follow-on contracts if performance is exceptional.
- Dependence on a single contractor for critical engine support.
Positive Signals
- Awarded through full and open competition.
- Contract duration provides a stable support period.
- Firm fixed price contract limits cost overruns.
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the broader aerospace and defense industry. Spending benchmarks in this specialized area are often high due to complex technology and stringent quality requirements.
Small Business Impact
While the prime contractor is a large corporation, the contract may indirectly benefit small businesses through subcontracts for specialized parts or services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Defense Logistics Agency's oversight is crucial for ensuring contract compliance, performance standards, and fair pricing. Regular performance reviews and audits are essential for accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Reliance on a single large prime contractor.
- Potential for supply chain disruptions affecting critical parts.
- Long-term sustainment costs for aging aircraft fleets.
- Cybersecurity risks associated with sensitive defense technology.
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 $129.9 million to LOCKHEED MARTIN CORPORATION. 8511249145!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 $129.9 million.
What is the period of performance?
Start: 2025-03-17. End: 2026-03-31.
What is the historical performance of Lockheed Martin in providing similar aircraft engine support services?
Lockheed Martin has a long and extensive history of supporting complex defense systems, including aircraft engines. Their track record typically involves high levels of technical expertise and program management. However, specific performance metrics for this exact type of support would require detailed review of past contract data and performance reports to ensure continued value and reliability.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
Key performance indicators likely focus on engine availability, turnaround time for repairs, quality of parts and services, and adherence to delivery schedules. The Defense Logistics Agency will measure these KPIs through regular reporting, inspections, and potentially operational readiness metrics of the supported aircraft. Failure to meet KPIs could result in penalties or affect future contract awards.
How does the firm fixed price structure mitigate potential cost overruns for the government?
A firm fixed price (FFP) contract establishes a set price for the work, transferring most of the risk for cost overruns to the contractor. This structure incentivizes the contractor to manage costs efficiently and accurately estimate expenses upfront. For the government, it provides budget certainty, as the final cost is known at the time of award, barring any contract modifications.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: $129,927,629
Exercised Options: $129,927,629
Current Obligation: $129,927,629
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: 2025-03-17
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-07-28
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