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 ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, 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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