DoD Awards $137.8M for Aircraft Engine Support to Lockheed Martin, Full and Open Competition
Contract Overview
Contract Amount: $137,809,268 ($137.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-03-11
End Date: 2021-06-04
Contract Duration: 450 days
Daily Burn Rate: $306.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507236287!AF GEN III SUPPORT
Place of Performance
Location: MIDDLE RIVER, BALTIMORE County, MARYLAND, 21220
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $137.8 million to LOCKHEED MARTIN CORPORATION for work described as: 8507236287!AF GEN III SUPPORT Key points: 1. Significant contract value for aircraft engine parts manufacturing. 2. Lockheed Martin is the sole awardee, indicating strong market position. 3. Risk associated with single-source award for critical defense components. 4. Spending falls within the Defense Logistics Agency's operational sector.
Value Assessment
Rating: good
The award amount of $137.8 million for aircraft engine support appears reasonable given the nature of the components and the prime contractor's expertise. Benchmarking against similar complex aerospace contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: Full and open competition is expected to yield fair market prices, maximizing taxpayer value for this critical defense procurement.
Public Impact
Ensures continued operational readiness for critical aircraft engines. Supports a major defense contractor and its supply chain. Impacts the aerospace manufacturing sector and specialized parts suppliers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals if competition diminishes.
- Dependence on a single contractor for critical engine parts.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Firm fixed price contract provides cost certainty.
- Supports essential defense readiness.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the aerospace and defense industry. Spending benchmarks for similar support contracts are typically high due to specialized labor and materials.
Small Business Impact
While the prime contractor is Lockheed Martin, a large corporation, the contract may indirectly benefit small businesses within its extensive supply chain. Further analysis would be needed to determine direct small business participation.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard oversight mechanisms for defense contracts should be in place to ensure performance and compliance.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole awardee for critical components.
- Potential for future price escalation due to limited competition.
- Dependence on contractor's supply chain stability.
- Complexity of aircraft engine parts requires specialized expertise.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $137.8 million to LOCKHEED MARTIN CORPORATION. 8507236287!AF GEN III SUPPORT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $137.8 million.
What is the period of performance?
Start: 2020-03-11. End: 2021-06-04.
What is the historical performance of Lockheed Martin in fulfilling similar aircraft engine support contracts?
Lockheed Martin has a long-standing reputation for supporting complex defense systems, including aircraft engines. Historical data on their performance for similar contracts would likely show a track record of meeting delivery schedules and quality standards, though specific contract metrics would need to be reviewed for a definitive assessment.
What are the specific risks associated with relying on a single awardee for critical aircraft engine parts?
Relying on a single awardee for critical parts creates a risk of supply chain disruption if the contractor faces production issues, financial instability, or geopolitical challenges. It also reduces the government's leverage in future price negotiations, potentially leading to higher costs over time.
How effectively does the firm fixed price contract structure mitigate cost overruns for this type of specialized support?
A firm fixed price contract is designed to transfer most of the cost risk to the contractor, providing strong cost certainty for the government. For specialized support like aircraft engines, this structure is effective in preventing unexpected cost increases, provided the initial price was set appropriately based on realistic cost estimates.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2323 EASTERN BLVD, BALTIMORE, MD, 21220
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: $137,809,268
Exercised Options: $137,809,268
Current Obligation: $137,809,268
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE4AX17D9006
IDV Type: IDC
Timeline
Start Date: 2020-03-11
Current End Date: 2021-06-04
Potential End Date: 2021-06-04 00:00:00
Last Modified: 2021-05-24
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