DoD Awards Lockheed Martin $83.6M for Aircraft Components and Accessories
Contract Overview
Contract Amount: $40,865,946 ($40.9M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-12-22
End Date: 2010-05-31
Contract Duration: 1,986 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200505!000037!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0097 ! !20041222!20071231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000033767035!Y!N!000000000000!K016!MODIFICATION OF EQ/AIRCRAFT COMPS & ACCYS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !C! !20200930!B! ! !A! !A!N!J!2!010!B! !Z!Y!A! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $40.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200505!000037!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0097 ! !20041222!20071231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!30850!045!45!GREENVILLE !GREE… Key points: 1. Contract awarded for aircraft components and accessories, a critical defense need. 2. Lockheed Martin is a major defense contractor, indicating significant industry presence. 3. The contract value is substantial, requiring careful monitoring of performance and cost. 4. The sector is Defense, a high-spending area with ongoing technological advancements.
Value Assessment
Rating: good
The contract value of $83.6 million appears reasonable for aircraft components and accessories, especially considering the duration and the nature of the work. Benchmarking against similar, large-scale defense contracts for specialized parts would provide a more precise assessment.
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 expected to yield fair market prices and encourage innovation.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense equipment.
Public Impact
Ensures continued availability of critical aircraft parts for military operations. Supports a major defense contractor and its supply chain, impacting jobs. Contributes to the readiness and operational capability of the U.S. Air Force. Represents a significant investment in maintaining aging aircraft fleets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term complex contracts.
- Dependence on a single large contractor for critical components.
- Risk of schedule delays impacting aircraft maintenance and deployment.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can limit cost uncertainty.
- Contract supports essential defense readiness.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this sector is driven by military modernization, maintenance, and operational requirements. Benchmarks for similar component contracts would typically be in the tens to hundreds of millions of dollars.
Small Business Impact
While the prime contractor is a large entity, the contract may involve subcontracts to small businesses for specialized parts or services, contributing to the broader defense industrial base.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms, quality standards, and delivery schedules. Regular reporting and audits are standard for contracts of this magnitude.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration is lengthy (over 5 years).
- Prime contractor is a large, established defense company.
- Scope includes critical aircraft components and spares.
- Potential for follow-on contracts or modifications.
- Firm Fixed Price contract type.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.9 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200505!000037!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0097 ! !20041222!20071231!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!30850!045!45!GREENVILLE !GREENVILLE !S CAROLINA!+000033767035!Y!N!000000000000!K016!MODIFICATION OF EQ/AIRCRAFT COMPS & ACCYS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !C! !202
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $40.9 million.
What is the period of performance?
Start: 2004-12-22. End: 2010-05-31.
What is the specific breakdown of components and accessories covered by this contract, and how does their pricing compare to industry standards for similar items?
The contract specifies 'Aircraft Manufacturing' and 'Airframes and Spares,' indicating a broad scope. A detailed breakdown of specific parts and their unit costs would be necessary to compare against industry standards. Without this granular data, it's difficult to definitively assess value beyond the overall contract amount, which appears reasonable for the stated purpose.
What are the key performance indicators (KPIs) for this contract, and what are the potential risks associated with Lockheed Martin's ability to meet them?
Key performance indicators likely include on-time delivery, quality of components, and adherence to specifications. Risks could involve supply chain disruptions affecting component availability, manufacturing defects leading to rework, or unforeseen technical challenges in producing specialized parts. The firm fixed price nature incentivizes meeting these KPIs efficiently.
How does this contract contribute to the overall modernization and readiness goals of the Department of Defense, particularly concerning the specific aircraft platforms it supports?
This contract directly supports the operational readiness of specific aircraft platforms by ensuring the availability of necessary components and spares. It likely addresses maintenance, repair, and potentially upgrades for existing fleets, contributing to the DoD's goal of maintaining a capable and modern airpower. The duration suggests a focus on sustainment rather than new platform development.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 645 TALLULAH TRAIL SUITE 101, WARNER ROBINS, GA, 31088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2004-12-22
Current End Date: 2010-05-31
Potential End Date: 2010-05-31 00:00:00
Last Modified: 2018-11-30
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