DoD Awards Lockheed Martin $29.5M for Aviation Training Systems Maintenance and Support
Contract Overview
Contract Amount: $29,540,692 ($29.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-07-01
End Date: 2020-06-30
Contract Duration: 365 days
Daily Burn Rate: $80.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS AWARD IS TO EXERCISE AND INCREMENTALLY FUND ORDERING PERIOD 2 CONTRACT LINE ITEM NUMBERS (CLINS) FOR THE AVIATION AND TRANSPORTATION SYSTEMS FOR LABOR, MATERIALS, AND ODCS.THE AVIATION AND TRANSPORTATION (AT) TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR THE COLLECTIVE TRAINING SYSTEM FOR ACTIVE, RESERVE AND ARMY NATIONAL GUARD AVIATION UNITS, FOR THE MOBILE MULTI-STATION VIRTUAL SIMULATION DEVICES THAT SUPPORTS UNIT COLLECTIVE AND COMBINED ARMS TRAINING.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32828
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $29.5 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS AWARD IS TO EXERCISE AND INCREMENTALLY FUND ORDERING PERIOD 2 CONTRACT LINE ITEM NUMBERS (CLINS) FOR THE AVIATION AND TRANSPORTATION SYSTEMS FOR LABOR, MATERIALS, AND ODCS.THE AVIATION AND TRANSPORTATION (AT) TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR TH… Key points: 1. Significant contract for essential aviation maintenance and training services. 2. Lockheed Martin is a major defense contractor, indicating established capabilities. 3. Risk of vendor lock-in and potential cost overruns in long-term support. 4. Spending falls within the Engineering Services sector.
Value Assessment
Rating: good
The $29.5 million award for one year of service appears reasonable given the scope of maintaining and training for complex aviation simulation systems. Benchmarking against similar large-scale simulation 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 competitive bidding process. This method is generally effective in achieving fair market prices for complex services.
Taxpayer Impact: Taxpayer funds are being used to ensure readiness and effectiveness of aviation units through advanced training systems.
Public Impact
Ensures readiness for Army aviation units through advanced simulation training. Supports active, reserve, and National Guard personnel. Maintains critical training infrastructure, reducing the need for live-fly training.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Warning Flags
- Potential for scope creep in future task orders.
- Reliance on a single contractor for critical training systems.
Positive Signals
- Supports critical national defense training requirements.
- Utilizes advanced simulation technology for cost-effective training.
- Awarded through full and open competition.
Sector Analysis
This contract falls under Engineering Services, specifically supporting defense-related simulation and training. Spending in this sub-sector is driven by technological advancements and the need for realistic, cost-effective training solutions for military personnel.
Small Business Impact
This award went to a large prime contractor, Lockheed Martin Corporation. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract is a delivery order under an existing contract, implying prior oversight. Further oversight would focus on performance metrics, cost control, and adherence to contract terms throughout the ordering period.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns in future task orders.
- Vendor lock-in for critical training systems.
- Dependence on a single large contractor.
- Cybersecurity risks associated with networked simulation systems.
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.5 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS AWARD IS TO EXERCISE AND INCREMENTALLY FUND ORDERING PERIOD 2 CONTRACT LINE ITEM NUMBERS (CLINS) FOR THE AVIATION AND TRANSPORTATION SYSTEMS FOR LABOR, MATERIALS, AND ODCS.THE AVIATION AND TRANSPORTATION (AT) TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR THE COLLECTIVE TRAINING SYSTEM FOR ACTIVE, RESERVE AND ARMY NATIONAL GUARD AVIATION UNITS, FOR THE MOBILE MULTI-STATION VIRTUAL SIMULATION DEVICES THAT SUPPORTS UNIT COLLECTIVE AND COMBINED ARMS TRAINING.
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 $29.5 million.
What is the period of performance?
Start: 2019-07-01. End: 2020-06-30.
What is the projected long-term cost of ownership for the Aviation and Transportation (AT) Task Order, including sustainment and future upgrades?
The provided data only covers the initial exercise and incremental funding for Ordering Period 2. A comprehensive long-term cost analysis would require projections for subsequent ordering periods, potential technology refresh cycles, and ongoing maintenance requirements beyond the current contract duration. This would inform future budget planning and ensure sustained value.
How does the performance of these simulation devices compare to previous training methods in terms of effectiveness and cost savings?
The effectiveness and cost savings of these simulation devices compared to previous training methods are not detailed in the award data. However, the general purpose of such systems is to provide realistic, repeatable training scenarios at a lower cost and risk than live-fly exercises. Performance metrics and comparative studies would be necessary to quantify these benefits.
What are the key performance indicators (KPIs) used to measure the success of this contract and the contractor's performance?
Key performance indicators are not explicitly stated in the provided award data. Typically, for such contracts, KPIs would include system uptime, training hours delivered, user satisfaction, maintenance response times, and adherence to schedules. The Department of the Army would monitor these metrics to ensure the contractor meets contractual obligations and delivers effective training support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: W900KK17R0034
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
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: $29,729,492
Exercised Options: $29,729,492
Current Obligation: $29,540,692
Actual Outlays: $2,456
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $5,539,538
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK18D0018
IDV Type: IDC
Timeline
Start Date: 2019-07-01
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2025-10-31
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