DoD Awards $148M F-22 Sustainment Contract to Lockheed Martin, Extending to 2027
Contract Overview
Contract Amount: $148,491,301 ($148.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-01-01
End Date: 2027-12-31
Contract Duration: 3,651 days
Daily Burn Rate: $40.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF COMPREHENSIVE F-22 VEHICLE SUSTAINMENT SERVICES
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $148.5 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF COMPREHENSIVE F-22 VEHICLE SUSTAINMENT SERVICES Key points: 1. Significant contract value for ongoing F-22 fighter jet sustainment. 2. Sole-source award to incumbent Lockheed Martin raises competition concerns. 3. Long-term contract duration (2027) requires careful performance monitoring. 4. Focus on aircraft manufacturing sector, critical for national defense.
Value Assessment
Rating: fair
The contract value of $148.5M over 9 years suggests a substantial but potentially variable annual spend. Benchmarking against similar sole-source sustainment contracts for major weapon systems is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and potentially leads to higher costs for taxpayers as the incumbent contractor faces no direct market pressure.
Taxpayer Impact: The absence of competition for a contract of this magnitude likely results in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Ensures continued operational readiness of the F-22 fleet. Supports high-skilled jobs in aerospace manufacturing and maintenance. Impacts national security by maintaining a key strategic asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Long-term reliance on a single provider
Positive Signals
- Ensures critical capability sustainment
- Leverages existing contractor expertise
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the sustainment of advanced fighter aircraft. Spending benchmarks for such specialized, long-term sustainment contracts are often high due to the complexity and critical nature of the equipment.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
Oversight will be crucial to ensure Lockheed Martin delivers on its sustainment obligations effectively and efficiently. The Department of the Air Force, as the contracting activity, is responsible for monitoring performance and managing the contract to prevent cost creep and ensure value for money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Long contract duration may reduce flexibility.
- High value contract requires diligent oversight.
- Potential for cost overruns without competition.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $148.5 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF COMPREHENSIVE F-22 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 $148.5 million.
What is the period of performance?
Start: 2018-01-01. End: 2027-12-31.
What is the projected annual cost for F-22 sustainment under this contract, and how does it compare to historical spending or industry benchmarks?
The total contract value is $148.5 million over approximately 9 years, suggesting an average annual cost of roughly $16.5 million. However, this is a blended rate and actual annual spending may fluctuate based on operational tempo and specific sustainment needs. Direct comparison to industry benchmarks is challenging due to the unique nature of the F-22 and the sole-source award.
What are the specific risks associated with a sole-source award for critical aircraft sustainment, and what mitigation strategies are in place?
The primary risk is the potential for inflated costs due to the lack of competition and the contractor's market dominance. Mitigation strategies could include robust performance metrics, strict cost controls, regular contract reviews, and potentially exploring limited competition for specific support elements in the future, though this contract is currently sole-source.
How does the long-term nature of this contract (ending in 2027) impact the Air Force's ability to adapt to future technological advancements or changing strategic needs?
A long-term contract provides stability for sustainment but can reduce flexibility. The Air Force must ensure contract clauses allow for adaptation to new technologies or strategic shifts. Regular engagement with the contractor and potential for contract modifications will be key to maintaining relevance and avoiding obsolescence over the contract's duration.
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: FIRM FIXED PRICE (J)
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: $150,950,551
Exercised Options: $148,491,301
Current Obligation: $148,491,301
Actual Outlays: $144,427
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: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-17
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)