DoD's $130M Aviation Field Maintenance Contract Awarded to Lockheed Martin Shows Fair Competition
Contract Overview
Contract Amount: $129,659,451 ($129.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2013-05-28
End Date: 2020-09-30
Contract Duration: 2,682 days
Daily Burn Rate: $48.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: RASM-WEST AVIATION FIELD MAINTENANCE
Place of Performance
Location: FORT CAMPBELL, MONTGOMERY County, TENNESSEE, 42223
Plain-Language Summary
Department of Defense obligated $129.7 million to LOCKHEED MARTIN CORPORATION for work described as: RASM-WEST AVIATION FIELD MAINTENANCE Key points: 1. The contract's value of approximately $130 million over its duration suggests a significant investment in aviation support. 2. Full and open competition indicates a robust bidding process, potentially leading to better pricing for the government. 3. The use of a Cost Plus Incentive Fee (CPIF) contract type suggests a focus on performance-based outcomes, with incentives for efficiency. 4. The contract duration of over 2,600 days points to a long-term need for these aviation maintenance services. 5. The award to Lockheed Martin, a major defense contractor, places this contract within the context of large-scale defense procurement. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for smaller enterprises.
Value Assessment
Rating: good
The contract's total value of $129.6 million over approximately seven years represents a substantial expenditure for aviation field maintenance. Benchmarking this against similar long-term, comprehensive aviation support contracts is challenging without more specific service details. However, the CPIF contract type, which includes incentives for cost savings and performance, suggests an effort to achieve value for money by aligning contractor and government interests. The pricing structure, while not detailed here, is subject to negotiation and oversight inherent in the CPIF model.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 8 bidders suggests a healthy level of competition for this significant aviation support requirement. A competitive environment like this typically drives down prices and encourages innovation as contractors vie for the award. The number of bidders provides a good indication that the government received multiple proposals, allowing for a thorough evaluation and selection process.
Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. The multiple bids received increase the likelihood that the government secured the best possible value for its investment in aviation field maintenance.
Public Impact
The primary beneficiaries are the Department of the Army and potentially other branches of the Department of Defense requiring aviation field maintenance. The services delivered include essential support activities for air transportation, ensuring the operational readiness of aircraft. The contract's geographic impact is likely focused on military installations where aviation units are stationed, with specific locations in Tennessee noted. Workforce implications include the potential for employment opportunities for skilled technicians and support personnel within Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not closely monitored.
- Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.
- Dependence on a single large contractor, Lockheed Martin, for critical aviation support functions.
Positive Signals
- Full and open competition suggests a strong market response and potential for competitive pricing.
- Incentive fee structure encourages contractor efficiency and performance optimization.
- The contract's clear definition of 'Other Support Activities for Air Transportation' indicates a focused service requirement.
Sector Analysis
The aerospace and defense sector is characterized by large, complex contracts for specialized services and equipment. This contract for aviation field maintenance fits within the broader landscape of defense logistics and support services, a critical component of military readiness. The market for such services is dominated by major defense contractors like Lockheed Martin, often competing for multi-year, high-value agreements. Spending in this area is driven by the operational needs of the armed forces and the lifecycle management of their aircraft fleets.
Small Business Impact
This contract does not appear to have been specifically set aside for small businesses, as indicated by the 'sb: false' flag. The award to a large prime contractor like Lockheed Martin suggests that subcontracting opportunities may exist for small businesses within the aviation maintenance supply chain. However, the extent of small business participation would depend on Lockheed Martin's subcontracting plan and the specific nature of the services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. The CPIF structure includes performance metrics and financial reviews to ensure accountability. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Aircraft Maintenance Services
- Logistics Support Contracts
- Defense Aviation Procurement
- Air Transportation Support
- Department of the Army Contracts
Risk Flags
- Long-term contract duration may increase exposure to changing requirements.
- Cost Plus Incentive Fee contracts require diligent oversight to manage costs effectively.
- Dependence on a single large contractor for critical support functions.
Tags
defense, department-of-defense, department-of-the-army, aviation-maintenance, field-support, lockheed-martin, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, large-contract, tennessee, other-support-activities-for-air-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.7 million to LOCKHEED MARTIN CORPORATION. RASM-WEST AVIATION FIELD MAINTENANCE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $129.7 million.
What is the period of performance?
Start: 2013-05-28. End: 2020-09-30.
What is the historical spending pattern for aviation field maintenance by the Department of the Army?
Analyzing historical spending patterns for aviation field maintenance by the Department of the Army requires access to detailed budget and contract data over multiple fiscal years. Generally, such spending fluctuates based on operational tempo, aircraft modernization programs, and depot maintenance schedules. Contracts like the one awarded to Lockheed Martin represent a portion of this overall expenditure. Without specific historical data for this particular service category, it's difficult to provide precise figures. However, it's reasonable to assume that consistent funding is allocated to ensure the readiness and operational capability of the Army's aviation assets, with significant investments made in maintenance, repair, and overhaul services.
How does the performance of Lockheed Martin on similar contracts compare?
Assessing Lockheed Martin's performance on similar contracts requires a review of past performance evaluations, contract award histories, and any documented issues or successes. Lockheed Martin is a major defense contractor with a vast portfolio of contracts across various defense domains. Their performance on aviation-related contracts, including maintenance and support, is generally considered robust, given their extensive experience and resources. However, like any large contractor, they may have faced challenges or received mixed reviews on specific contracts. A detailed analysis would involve examining contract close-out reports, CPARS (Contractor Performance Assessment Reporting System) data, and any publicly available information regarding their track record in aviation field maintenance and support services.
What are the key performance indicators (KPIs) used in this Cost Plus Incentive Fee (CPIF) contract?
The specific Key Performance Indicators (KPIs) for this Cost Plus Incentive Fee (CPIF) contract are not detailed in the provided data. However, for aviation field maintenance contracts, typical KPIs often revolve around aircraft availability rates, turnaround times for repairs, quality of workmanship (e.g., defect rates), adherence to maintenance schedules, and cost control. The 'incentive fee' component means that Lockheed Martin's final profit is tied to achieving or exceeding these pre-defined performance targets. The government and contractor would have collaboratively established these metrics during the negotiation phase, ensuring they align with the overall mission objectives and desired outcomes for aviation readiness.
What is the risk assessment associated with this contract, considering its duration and scope?
The primary risks associated with this contract stem from its significant duration (over 2,600 days) and the critical nature of aviation field maintenance. Potential risks include cost overruns, especially with the CPIF structure if incentives are not well-defined or managed. Technological obsolescence or changes in military requirements could also pose risks, potentially making the contracted services less relevant over time. Contractor performance degradation, supply chain disruptions, and the potential for unforeseen maintenance issues on aging aircraft are also considerations. The government mitigates these risks through contract oversight, performance monitoring, and the incentive structure designed to promote efficiency and quality.
How does this contract's value compare to the overall Department of Defense spending on aviation maintenance?
The $129.6 million awarded to Lockheed Martin for aviation field maintenance represents a specific allocation within the Department of Defense's (DoD) broader aviation maintenance budget. The DoD's total spending on aviation maintenance is substantial, encompassing depot-level repairs, component overhaul, spare parts procurement, and field-level support across all branches of service. This single contract, while significant, is likely a fraction of the overall DoD aviation maintenance expenditure. To provide a precise comparison, one would need to access the DoD's comprehensive budget documents and contract databases to aggregate all spending related to aviation maintenance across different agencies and contract types.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W58RGZ12R0102
Offers Received: 8
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 200 LOCKHEED MARTIN BLVD, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $142,638,352
Exercised Options: $129,659,451
Current Obligation: $129,659,451
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $2,911,640
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-28
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-07-29
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