DoD awards $95.7M for aircraft components, with Lockheed Martin as prime contractor
Contract Overview
Contract Amount: $95,732,607 ($95.7M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2004-12-17
End Date: 2011-07-31
Contract Duration: 2,417 days
Daily Burn Rate: $39.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200505!000038!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0098 ! !20041217!20081031!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!17200!019!05!DALEVILLE !CLARK !ARKANSAS !+000005038966!N!N!000000000000!K016!MODIFICATION OF EQ/AIRCRAFT COMPS & ACCYS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !A! !20200930!B! ! !A! !A!N!J!2!010!B! !Z!Y!A! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $95.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200505!000038!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0098 ! !20041217!20081031!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!17200!019!05!DALEVILLE !CLAR… Key points: 1. Contract value of $95.7M for aircraft components and accessories. 2. Lockheed Martin Integrated Systems, LLC is the prime contractor. 3. Contract duration spans from December 2004 to October 2008. 4. This is a modification to an existing contract. 5. The contract type is Firm Fixed Price. 6. The Product Service Code is K016, indicating modification of equipment/aircraft components and accessories.
Value Assessment
Rating: fair
The contract value of $95.7 million for aircraft components and accessories appears to be within a reasonable range for a large defense contract of this nature. However, without specific details on the exact components, quantities, and the nature of the modification, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source modifications or competitive procurements for comparable aircraft parts would be necessary for a more definitive evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The data does not specify the number of bidders, but the competitive nature suggests that pricing was subject to market forces. This approach generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source awards.
Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.
Public Impact
The primary beneficiaries are the U.S. Air Force units utilizing the aircraft that require these components and accessories. The contract delivers essential modifications and parts for aircraft, ensuring operational readiness and safety. The geographic impact is primarily within the United States, supporting defense logistics and maintenance operations. The contract supports jobs within the aerospace and defense manufacturing sector, particularly at Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of modifications is not clearly defined.
- Risk of schedule delays if supply chain issues arise for specialized components.
- Dependence on a single prime contractor for complex modifications.
Positive Signals
- Firm Fixed Price contract type helps control costs.
- Full and open competition suggests a robust bidding process.
- Modification of existing equipment can be more cost-effective than new procurement.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft components and accessories. The market for such specialized parts is characterized by high technical requirements, stringent quality control, and significant government investment. Comparable spending benchmarks would involve analyzing other contracts for aircraft sustainment, modification, and spare parts procurement within the Department of Defense.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss=false, sb=false). While Lockheed Martin is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on Lockheed Martin's internal policies and the specific requirements of the contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms, quality standards, and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Parts and Components
- Aerospace Manufacturing
- Defense Logistics Support
- Aircraft Modification Services
- Air Force Sustainment Programs
Risk Flags
- Contract Modification
- Potential for Scope Creep
- Sole Source Potential (if modifications lead to new requirements)
Tags
defense, department-of-defense, lockheed-martin, aircraft-manufacturing, firm-fixed-price, full-and-open-competition, delivery-order, modification-of-equipment, aircraft-components, georgia, arkansas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $95.7 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200505!000038!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0098 ! !20041217!20081031!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!17200!019!05!DALEVILLE !CLARK !ARKANSAS !+000005038966!N!N!000000000000!K016!MODIFICATION OF EQ/AIRCRAFT COMPS & ACCYS !A1A!AIRFRAMES AND SPARES !000 !* !336413!E! !5!B!M! !A! !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 $95.7 million.
What is the period of performance?
Start: 2004-12-17. End: 2011-07-31.
What specific aircraft models are covered by this contract for component modification?
The provided data does not specify the exact aircraft models covered by this contract. The Product Service Code (PSC) K016, 'Modification of Equipment/Aircraft Components & Accessories,' and the North American Industry Classification System (NAICS) code 336411, 'Aircraft Manufacturing,' suggest a broad scope related to aircraft. To determine the specific aircraft, further investigation into the contract details or associated documentation would be required. This could involve reviewing contract line item numbers (CLINs) or referencing historical procurement data for the relevant period and agency (Department of Defense).
How does the $95.7 million contract value compare to similar aircraft component modification contracts awarded by the DoD?
Comparing the $95.7 million contract value requires context regarding the specific types of components, the complexity of modifications, and the aircraft platforms involved. For large-scale modifications or upgrades to major aircraft systems, this value could be considered moderate. However, for routine component replacements or minor modifications, it might represent a significant investment. Benchmarking would necessitate identifying contracts with similar PSCs (like K016) and NAICS codes (like 336411) awarded around the same timeframe (2004-2008) to prime contractors like Lockheed Martin. Without access to detailed comparative contract data, it's difficult to definitively state whether this represents high or low spending relative to peers.
What were the key performance indicators (KPIs) or metrics used to evaluate Lockheed Martin's performance under this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) or metrics used to evaluate Lockheed Martin's performance. However, for a Firm Fixed Price (FFP) contract of this nature, typical performance evaluations would focus on critical aspects such as on-time delivery of modified components and accessories, adherence to quality standards (e.g., defect rates, compliance with technical specifications), and overall cost control within the agreed-upon price. The contract's duration (December 2004 to October 2008) suggests a need for consistent performance over an extended period. Performance would likely be monitored through regular reporting, inspections, and potentially user feedback from the operating units.
What is the historical spending trend for aircraft component modifications by the Department of Defense over the last decade?
The provided data pertains to a single contract awarded in 2004. To analyze historical spending trends for aircraft component modifications by the Department of Defense (DoD) over the last decade, a comprehensive dataset encompassing multiple contracts across various fiscal years would be necessary. Such an analysis would typically involve aggregating spending data associated with relevant Product Service Codes (PSCs) and NAICS codes. Factors influencing these trends include overall defense budgets, modernization priorities, aircraft fleet age, operational tempo, and geopolitical events. Generally, spending in this category can fluctuate based on the need for upgrades, sustainment of aging fleets, and the introduction of new platforms.
What is the significance of the 'Modification of Equipment/Aircraft Components & Accessories' PSC (K016) in the context of defense spending?
The PSC K016, 'Modification of Equipment/Aircraft Components & Accessories,' signifies spending directed towards altering, upgrading, or repairing existing defense equipment, specifically focusing on aircraft parts. This category is crucial for maintaining the operational readiness and extending the service life of military aircraft fleets. It represents a significant portion of sustainment and modernization budgets, often being more cost-effective than procuring entirely new systems. Contracts under K016 can range from minor component enhancements to major structural modifications, reflecting the ongoing need to adapt aircraft to evolving threats and technological advancements.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2004-12-17
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2016-06-21
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