DoD Awards Lockheed Martin $26.5M for Aviation Training Systems Maintenance and Support
Contract Overview
Contract Amount: $26,481,156 ($26.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-07-01
End Date: 2021-06-30
Contract Duration: 364 days
Daily Burn Rate: $72.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: AWARD AT TASK ORDER 317 FUNDING FOR AVIATION AND TRANSPORTATION (AT). THE AVIATION TRANSPORTATION TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR THE COLLECTIVE TRAINING SYSTEM
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32828
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $26.5 million to LOCKHEED MARTIN CORPORATION for work described as: AWARD AT TASK ORDER 317 FUNDING FOR AVIATION AND TRANSPORTATION (AT). THE AVIATION TRANSPORTATION TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR THE COLLECTIVE TRAINING SYSTEM Key points: 1. Significant contract value for specialized aviation training systems. 2. Lockheed Martin is a major defense contractor, indicating potential for strong incumbent advantage. 3. Risk of cost overruns or performance issues in complex training system maintenance. 4. Spending falls within the Engineering Services sector, crucial for defense readiness.
Value Assessment
Rating: good
The contract's Cost No Fee (CNF) pricing structure shifts risk to the contractor. While this can incentivize efficiency, it requires robust oversight to ensure performance standards are met without compromising quality.
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 generally promotes price discovery and aims for the best value for the government.
Taxpayer Impact: The competitive award process is intended to ensure taxpayer funds are used efficiently for essential aviation training support.
Public Impact
Ensures continued operational readiness for aviation personnel through effective training systems. Supports advanced technological training capabilities critical for modern military operations. Provides essential maintenance and updates to complex simulation and training equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in maintenance and training requirements.
- Reliance on a single contractor for critical training system support.
Positive Signals
- Full and open competition utilized.
- Cost No Fee structure incentivizes contractor efficiency.
Sector Analysis
This contract falls under Engineering Services, a sector vital for maintaining and developing complex defense systems. Benchmarks for similar aviation training system contracts would typically focus on performance metrics and lifecycle support costs.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the prime contractor is a large corporation. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The Cost No Fee structure necessitates diligent oversight by the Department of Defense to monitor contractor performance, costs, and adherence to training objectives. Regular performance reviews and audits are crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contractor performance risk
- Training effectiveness verification
- Long-term system sustainment planning
- Potential for cost overruns despite CNF structure
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 $26.5 million to LOCKHEED MARTIN CORPORATION. AWARD AT TASK ORDER 317 FUNDING FOR AVIATION AND TRANSPORTATION (AT). THE AVIATION TRANSPORTATION TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR THE COLLECTIVE TRAINING SYSTEM
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 $26.5 million.
What is the period of performance?
Start: 2020-07-01. End: 2021-06-30.
What is the historical performance of Lockheed Martin on similar aviation training system contracts?
Assessing Lockheed Martin's past performance on comparable contracts is crucial. This includes evaluating their track record on meeting delivery schedules, budget adherence, and the quality of training provided. Historical data can reveal patterns of efficiency or potential challenges, informing future risk assessments and oversight strategies for this specific task order.
How will the Department of Defense ensure the effectiveness of the training provided under this contract, given the Cost No Fee structure?
The DoD will likely implement rigorous performance metrics and regular evaluations to ensure training effectiveness. This includes monitoring trainee performance, system uptime, and the relevance of training content. The CNF structure places the onus on Lockheed Martin to deliver results, but the DoD must actively verify that these results meet operational readiness standards.
What is the long-term strategy for maintaining and upgrading these aviation training systems beyond this contract's duration?
Understanding the long-term strategy is vital for assessing sustained value and future investment. This involves examining plans for technology refresh, obsolescence management, and potential follow-on contracts. A clear roadmap ensures the training systems remain relevant and effective, avoiding costly reactive upgrades or replacements.
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: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
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: $26,674,968
Exercised Options: $26,674,968
Current Obligation: $26,481,156
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $1,629,199
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK18D0018
IDV Type: IDC
Timeline
Start Date: 2020-07-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2025-10-31
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