Derco Aerospace, Inc.

Derco Aerospace, Inc. — doing business as Derco Aerospace, Inc. A Lockheed Martin Company — is a Milwaukee-based subsidiary of Lockheed Martin Corporation that supplies military aircraft spare parts, components, and structural assemblies to the Department of Defense as a prime contractor. The vendor competes exclusively in full-and-open (unrestricted) procurements and holds no SBA set-aside designations. Derco operates as a captive supplier within Lockheed Martin's broader aerospace and defense portfolio, with federal award activity concentrated almost entirely in Defense Logistics Agency Aviation and related DoD supply chains.

Derco's capability footprint is narrowly and deeply specialized: the vendor manufactures and supplies aircraft structural components, fasteners, hydraulic and pneumatic assemblies, electrical subassemblies, and miscellaneous aircraft accessories and components across NAICS codes dominated by aircraft parts manufacturing (Other Aircraft Parts and Auxiliary Equipment Manufacturing accounts for 6,535 of the vendor's 10,726 prime awards). Representative concrete work includes a $3.57 million delivery order from DLA Aviation on March 19, 2026, for C-130 aircraft parts and material support (firm fixed price, Brown Deer, WI); a $2.55 million delivery order from Naval Supply Systems Command on March 10, 2026, for segmented rotational brake components (firm fixed price, ultimate completion April 19, 2027); and a $274,696 delivery order from DLA Aviation on March 10, 2026, for aircraft window panels (firm fixed price, Huntsville, AL). The vendor also holds a single-award indefinite delivery contract from Naval Supply Systems Command with a $3.9 million ceiling for repair of NIIN 01-418-3177 (three-year performance period through January 1, 2029), under which the March brake order was issued.

Customer concentration is extreme and monolithic. DLA Aviation accounts for 8,086 awards (75% of all prime awards) and $6.18 billion in combined potential value (98% of all dollars), with the remaining customer base — Naval Supply Systems Command ($19.3 million across 235 awards), DLA Land and Maritime ($11.4 million across 473 awards), and scattered Air Force orders — representing marginal secondary revenue. This concentration reflects Derco's role as a dedicated DLA Aviation supplier embedded in the Defense Logistics Agency's supply chain infrastructure.

Place of performance spans multiple Lockheed Martin and aerospace supplier facilities, including Brown Deer, Wisconsin (primary hub); Kennesaw, Georgia; Huntsville, Alabama; Santa Fe Springs, California; and scattered secondary locations. Work is issued entirely as firm fixed-price or fixed-price redetermination delivery orders against DLA and Naval Supply Systems Command indefinite delivery contracts; Derco does not hold its own GWACs or government-wide vehicles. The top five parent IDIQs account for 6,860 task orders and $147 million in combined potential value, led by Indefinite Delivery Contract SPE4A520DP002 (3,169 task orders, $54.4 million) and SPE4AX20D9403 (1,494 task orders, $48.1 million), both DLA Aviation vehicles.

Activity trajectory shows contraction year over year — 1,167 awards in 2022 declining to 406 in 2026 (first four months only). The recompete cliff presents near-term exposure: 883 awards with ultimate completion dates within the next twenty-four months carry combined potential value of $38.5 million. Derco's sub footprint is negligible (eight sub-awards, less than 0.1% of portfolio volume); the vendor has historically subcontracted to Sierra Nevada Company, LLC on defense programs such as A-29 Lebanon Program Sustainment brake assembly work.

Derco operates as a functional logistics subsidiary within Lockheed Martin's Rotary and Mission Systems division rather than as an independent competitor. The vendor's federal revenue is captive — almost entirely dependent on DLA Aviation replenishment orders and Naval Supply Systems Command repair contracts. Strategic differentiation centers on part-number depth (the vendor maintains manufacturing or distribution capability for thousands of NSNs across aircraft families) and geographic supply chain positioning rather than on competitive capability development or market diversification.