Lockheed Martin awarded $26.8M for aviation training systems maintenance and support

Contract Overview

Contract Amount: $26,838,026 ($26.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2022-07-01

End Date: 2024-04-30

Contract Duration: 669 days

Daily Burn Rate: $40.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD THE AVIATION AND TRANSPORTATION (AT) TASK ORDER 0517.THE AT TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR TRAINING SYSTEMS.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32828

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD THE AVIATION AND TRANSPORTATION (AT) TASK ORDER 0517.THE AT TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR TRAINING SYSTEMS. Key points: 1. Contract focuses on essential maintenance and training for critical aviation systems. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Task order duration of 669 days indicates a medium-term support requirement. 5. Contract awarded by the Department of the Army, a key defense entity. 6. Geographic focus on Florida for service delivery.

Value Assessment

Rating: good

The contract value of $26.8 million for maintenance and training of aviation systems appears reasonable given the scope and duration. Benchmarking against similar task orders for specialized training systems support would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for cost control, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The agency likely sought the best value through a structured evaluation process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overpayment.

Public Impact

Aviation and transportation training systems will receive necessary maintenance and updates. U.S. Army personnel will benefit from reliable training equipment and support. Services are primarily delivered in Florida, supporting the local economy. The contract ensures the continued readiness of aviation training capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs in fixed-price contracts.
Dependence on a single contractor for critical maintenance could pose risks if performance falters.

Positive Signals

Firm fixed-price contract type helps mitigate cost uncertainty for the government.
Full and open competition suggests a robust selection process.
Award to a major defense contractor like Lockheed Martin may indicate a track record of capability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related training systems. The market for defense training and simulation is substantial, driven by the need for realistic and cost-effective personnel preparation. Spending in this area is crucial for maintaining military readiness and technological advantage.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the extent of small business participation will depend on Lockheed Martin's subcontracting strategy.

Oversight & Accountability

Oversight for this task order would typically be managed by the Department of the Army contracting and program management offices. Accountability is ensured through contract performance monitoring, milestone tracking, and adherence to the firm fixed-price terms. Transparency is facilitated by contract award databases, though detailed performance metrics are often internal.

Related Government Programs

Aviation Training Systems
Defense Training and Simulation
Military Maintenance Services
Department of the Army Contracts

Risk Flags

Contractor performance risk
Scope creep potential
Dependence on single source for critical support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS ACTION IS TO AWARD THE AVIATION AND TRANSPORTATION (AT) TASK ORDER 0517.THE AT TASK ORDER PROVIDES MAINTENANCE AND TRAINING FOR TRAINING SYSTEMS.

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 $26.8 million.

What is the period of performance?

Start: 2022-07-01. End: 2024-04-30.

What is Lockheed Martin's track record with similar aviation training system maintenance contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience in aviation, aerospace, and defense systems, including training and simulation technologies. They have a long history of supporting complex military platforms and associated training infrastructure. While specific details on past performance for this exact task order's scope are not publicly detailed here, their broad portfolio suggests a strong capability in managing and executing such contracts. Government contract databases often contain past performance evaluations, which would provide a more granular view of their success rates, on-time delivery, and quality of service on comparable projects.

How does the $26.8 million value compare to similar aviation training system support contracts?

Without access to a comprehensive database of comparable contracts, a precise benchmark is difficult. However, $26.8 million for a 669-day (approximately 22-month) task order for maintenance and training of complex aviation systems appears within a reasonable range for specialized defense support. Factors influencing this value include the sophistication of the training systems, the level of technical expertise required, geographic location, and the specific maintenance tasks involved. Larger, more complex systems or those requiring extensive engineering support would naturally command higher values. The firm fixed-price nature suggests the government sought to cap costs.

What are the primary risks associated with this contract for the government?

The primary risks for the government include potential performance issues from the contractor, leading to delays or subpar maintenance that impacts training readiness. With a firm fixed-price contract, there's a risk of contractor underperformance if they cut corners to maintain profitability. Scope creep, where the requirements expand beyond the initial agreement without a corresponding price adjustment, is another risk, though the fixed-price nature aims to mitigate this. Dependence on Lockheed Martin for critical support also presents a risk if the contractor faces internal issues or decides to exit the market segment.

How effective is full and open competition in ensuring value for this type of specialized service?

Full and open competition is generally considered the most effective method for ensuring value for specialized services like aviation training system maintenance. It allows a wide range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. The Department of the Army's selection of this method suggests they aimed to leverage market forces to obtain the best possible technical solution at a competitive price. The effectiveness is further enhanced by a well-defined statement of work and a robust evaluation process that considers both technical merit and cost.

What is the historical spending trend for aviation training systems maintenance within the Department of the Army?

Historical spending on aviation training systems maintenance within the Department of the Army has likely been substantial and consistent, reflecting the ongoing need to maintain readiness for its diverse aviation fleet. Budgets for such support services are influenced by factors like the introduction of new aircraft, the aging of existing platforms, and evolving training doctrines. While this specific task order represents a single data point, the Army generally allocates significant resources to sustainment and training capabilities. Analyzing multi-year spending patterns would reveal trends in investment, potential shifts towards simulation, and the overall cost of maintaining these critical assets.

Are there any specific performance metrics or KPIs tied to this task order?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this task order. However, it is standard practice for defense contracts of this nature to include specific performance standards. These typically relate to response times for maintenance requests, system uptime, quality of repairs, training delivery effectiveness, and adherence to schedules. The Department of the Army would monitor these metrics to ensure Lockheed Martin meets its contractual obligations. Failure to meet KPIs could result in penalties or impact future contract awards.

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: $26,838,026

Exercised Options: $26,838,026

Current Obligation: $26,838,026

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $1,588,557

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