DoD Awards $83.6M for Aircraft Structural Component Repair to Lockheed Martin
Contract Overview
Contract Amount: $38,824,496 ($38.8M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2005-11-01
End Date: 2010-04-30
Contract Duration: 1,641 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200604!000021!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0114 ! !20051101!20050131!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000000698538!Y!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !488190!E! !5!B!M! !A!C!20080930!B! ! !A! !A!N!J!2!010!B! !Z!N!Z! ! !N!C!N! ! ! !D!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 $38.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: 200604!000021!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0114 ! !20051101!20050131!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!07125!031!24!BETHESDA !MONT… Key points: 1. Contract awarded to Lockheed Martin for maintenance and repair of aircraft structural components. 2. Significant contract value of $83.6 million over a 5-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the Defense sector, specifically Aircraft Manufacturing.
Value Assessment
Rating: good
The contract value of $83.6 million for a 5-year period appears reasonable for specialized aircraft structural component repair services, especially considering the complexity and critical nature of such work.
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 compete. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is expected to result in a fair price for taxpayers, maximizing value for the government.
Public Impact
Ensures continued operational readiness of critical aircraft by maintaining structural integrity. Supports the U.S. Air Force's fleet maintenance and sustainment capabilities. Contributes to the aerospace and defense industrial base, supporting jobs and technological advancement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen structural issues arise.
- Dependence on a single contractor for critical repair services.
- Risk of supply chain disruptions for specialized parts.
Positive Signals
- Long-term contract provides stability for maintenance operations.
- Experienced contractor with a proven track record in aerospace.
- Competitive bidding process likely secured favorable pricing.
Sector Analysis
This contract is within the Defense sector, specifically focusing on the maintenance and repair of aircraft structural components. Spending benchmarks in this area are highly variable based on aircraft type, age, and operational tempo.
Small Business Impact
While the prime contractor is Lockheed Martin, a large aerospace company, the contract may involve subcontracting opportunities for small businesses that provide specialized parts or services related to aircraft structural repair.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract to ensure compliance with terms, quality standards, and timely delivery of services.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration of 5 years may not align with evolving aircraft technology or future needs.
- High contract value could be a target for cost-saving initiatives or re-competition.
- Reliance on a single large prime contractor may limit agility.
- Potential for scope creep if repair requirements are not precisely defined.
- Geographic concentration of services could pose logistical risks.
- Cybersecurity risks associated with handling sensitive defense-related data.
Tags
aircraft-manufacturing, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.8 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. 200604!000021!5700!FA8504!WR-ALC/LBK !F0960301D0207 !A!N! !Y!0114 ! !20051101!20050131!836196972!805258373!834951691!N!LOCKHEED MARTIN INTEGRATED SYS!6801 ROCKLEDGE DRIVE !BETHESDA !MD!20817!07125!031!24!BETHESDA !MONTGOMERY !MARYLAND !+000000698538!Y!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !488190!E! !5!B!M! !A!C!200
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 $38.8 million.
What is the period of performance?
Start: 2005-11-01. End: 2010-04-30.
What is the historical performance of Lockheed Martin in fulfilling similar aircraft structural repair contracts for the DoD?
Lockheed Martin has a long-standing history of supporting U.S. military aviation programs. Their performance on similar contracts would typically be assessed through past performance evaluations, delivery metrics, and quality assurance reports. Agencies often review this data during the source selection process to gauge a contractor's reliability and capability in executing complex maintenance and repair tasks.
How are potential cost overruns managed and mitigated under this firm-fixed-price contract structure?
Under a firm-fixed-price (FFP) contract, the contractor assumes most of the cost risk. Lockheed Martin is obligated to perform the work for the agreed-upon price. However, mechanisms like change order requests for scope changes, equitable adjustments for unforeseen government-directed changes, or contract clauses addressing extraordinary circumstances can address potential overruns. Robust oversight is crucial to prevent scope creep and ensure adherence to the original agreement.
What specific metrics are used to evaluate the effectiveness of these aircraft structural repair services in maintaining fleet readiness?
Effectiveness is typically measured by metrics such as turnaround time for repairs, defect rates after repair, aircraft availability rates, and the reduction in unscheduled maintenance events. Performance metrics are often tied to contract deliverables and key performance indicators (KPIs) established during the solicitation phase, ensuring that the repairs directly contribute to the operational readiness and safety of the aircraft fleet.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
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
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, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Parent Contract
Parent Award PIID: F0960301D0207
IDV Type: IDC
Timeline
Start Date: 2005-11-01
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2014-07-16
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