DoD's $22.5M Lockheed Martin Contract for Flight Training in Arizona: A Cost and Competition Analysis
Contract Overview
Contract Amount: $22,511,822 ($22.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-07-01
End Date: 2014-12-31
Contract Duration: 2,009 days
Daily Burn Rate: $11.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BASE-YEAR: MANAGEMENT&MAINTENAN-TUCSON
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85003
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to LOCKHEED MARTIN CORPORATION for work described as: BASE-YEAR: MANAGEMENT&MAINTENAN-TUCSON Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. Firm Fixed Price contract type suggests clear cost expectations, but actual value needs scrutiny. 3. Full and open competition was used, indicating a potentially competitive bidding process. 4. The contract spans over 5 years, suggesting a significant, long-term need for flight training services.
Value Assessment
Rating: fair
The contract's base year value of $22.5 million for flight training is substantial. Benchmarking against similar DoD flight training contracts is necessary to determine if this represents fair pricing, especially given the firm fixed price structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and can lead to better price discovery. However, the specific details of the bidding process and the number of bids received are not provided.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment, potentially leading to cost savings.
Public Impact
This contract supports critical flight training for the U.S. Army, ensuring pilot readiness. The duration of the contract suggests a sustained investment in military aviation capabilities. Geographic concentration in Arizona may indicate regional training hubs or specific operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Limited insight into competitive bidding details
Positive Signals
- Firm Fixed Price contract
- Full and open competition utilized
Sector Analysis
This contract falls within the Defense sector, specifically focusing on flight training services. Spending in this area is crucial for maintaining military readiness and pilot proficiency. Benchmarks for similar training contracts would provide context for the $22.5 million base year cost.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business, and there is no indication of small business subcontracting. Further investigation is needed to determine if opportunities for small businesses were overlooked or if subcontracting plans were in place.
Oversight & Accountability
Oversight of this contract would involve monitoring performance against the firm fixed price, ensuring adherence to training standards, and verifying the effectiveness of the competitive bidding process. The Department of the Army is responsible for this oversight.
Related Government Programs
- Flight Training
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for uncompetitive pricing despite full and open competition.
- Lack of transparency on bid details.
- No explicit mention of small business subcontracting.
- Need for performance metric clarity.
- Long-term strategic alignment requires further assessment.
Tags
flight-training, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to LOCKHEED MARTIN CORPORATION. BASE-YEAR: MANAGEMENT&MAINTENAN-TUCSON
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 $22.5 million.
What is the period of performance?
Start: 2009-07-01. End: 2014-12-31.
What was the total number of bids received during the full and open competition, and how did the winning bid compare to others?
The provided data does not specify the number of bids received. Full and open competition theoretically allows for maximum bidder participation, but without knowing the bid count and range, it's impossible to assess the competitiveness of the final award. Further analysis would require access to bid data to confirm if the price achieved truly reflects market value.
Are there specific performance metrics or quality standards tied to this firm fixed price contract for flight training?
While the contract is firm fixed price, the data doesn't detail specific performance metrics or quality standards. Effective oversight would require clear deliverables and measurable outcomes for the flight training provided. Understanding these metrics is crucial for assessing the true value and effectiveness of the $22.5 million investment.
What is the long-term strategic value of this specific flight training program within the broader context of Army aviation readiness?
The contract's duration and value suggest a significant role in the Army's aviation readiness strategy. Its long-term value depends on how well it aligns with evolving training needs, technological advancements in aviation, and the overall force structure. Assessing its strategic importance requires understanding the specific aircraft and pilot skills being trained.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Flight Training
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9133L09R0010
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 12506 LAKE UNDERHILL RD, ORLANDO, FL, 32825
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,291,998
Exercised Options: $23,047,126
Current Obligation: $22,511,822
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-07-01
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2024-09-27
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