DoD Awards $284M F-22 Sustainment Contract to Lockheed Martin, Raising Competition Concerns
Contract Overview
Contract Amount: $28,431,951 ($28.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-01-01
End Date: 2025-12-31
Contract Duration: 2,921 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF COMPREHENSIVE F-22 AIR VEHICLE SUSTAINMENT SERVICES
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $28.4 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF COMPREHENSIVE F-22 AIR VEHICLE SUSTAINMENT SERVICES Key points: 1. Significant contract value of $284.3 million for F-22 sustainment. 2. Sole-source award to Lockheed Martin Corporation limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Focus on aircraft manufacturing sector, critical for national defense.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without further data. Benchmarking against similar sustainment contracts for advanced aircraft would be necessary to determine if the pricing is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. The absence of competition likely hindered price discovery and may have resulted in a higher overall cost to the government.
Taxpayer Impact: The lack of competition on this substantial contract could lead to inefficient use of taxpayer funds, as market forces were not leveraged to secure the best possible price.
Public Impact
Ensures continued operational readiness of the F-22 Raptor fleet. Supports high-skilled jobs within the aerospace and defense industry. Potential for increased long-term costs for taxpayers due to sole-source nature. Highlights reliance on incumbent contractors for specialized defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Essential for critical defense asset sustainment
- Long-term contract duration provides stability
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the sustainment of advanced fighter aircraft. Spending benchmarks in this area are often high due to the specialized nature of the technology and the limited number of qualified providers.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the nature of F-22 sustainment and the sole-source award to a large corporation, opportunities for small businesses may be limited unless subcontracting is actively pursued.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight would typically involve contract performance monitoring, financial audits, and ensuring adherence to the terms of the cost-plus-fixed-fee agreement to manage costs effectively.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of price discovery.
- Cost-plus contract type can lead to cost overruns if not managed tightly.
- High reliance on a single contractor for critical defense systems.
- Lack of transparency in pricing due to sole-source nature.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.4 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF COMPREHENSIVE F-22 AIR VEHICLE SUSTAINMENT SERVICES
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $28.4 million.
What is the period of performance?
Start: 2018-01-01. End: 2025-12-31.
What is the estimated total cost of the contract over its full duration, and how does this compare to historical sustainment costs for similar platforms?
The current award is $284.3 million, with an estimated end date of December 31, 2025. A precise total cost projection requires analyzing the cost-plus-fixed-fee elements and potential contract modifications. Benchmarking against sustainment costs for other advanced fighter jets is crucial for assessing value, considering factors like fleet size, operational tempo, and component commonality.
What specific justifications were provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
Sole-source awards typically require a strong justification, such as unique capabilities, proprietary technology, or lack of viable alternatives. The Department of the Air Force would need to document why Lockheed Martin was the only source capable of providing the F-22 sustainment services. Exploring limited competition or other approaches should be standard practice before resorting to sole-source.
How effectively is the cost-plus-fixed-fee structure being managed to ensure cost control and prevent contractor overruns, especially given the lack of competition?
Effective management of a cost-plus-fixed-fee contract, particularly a sole-source one, relies heavily on robust government oversight. This includes detailed review of incurred costs, rigorous negotiation of the fixed fee, and performance metrics. Without competition, the government must be extra vigilant in scrutinizing costs and ensuring the contractor is incentivized to perform efficiently.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA820516R0001
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD BLDG 10, FORT WORTH, TX, 76108
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: $28,431,951
Exercised Options: $28,431,951
Current Obligation: $28,431,951
Actual Outlays: $42,582
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA820518D0001
IDV Type: IDC
Timeline
Start Date: 2018-01-01
Current End Date: 2025-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2024-05-02
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