F-22 Sustainment Services Contract Awarded to Lockheed Martin for $126.6M
Contract Overview
Contract Amount: $126,568,982 ($126.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-01-01
End Date: 2024-06-21
Contract Duration: 2,363 days
Daily Burn Rate: $53.6K/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 $126.6 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 for ongoing aircraft maintenance and support. 2. Sole-source award to Lockheed Martin, raising questions about competition. 3. Long contract duration (2363 days) suggests a critical, long-term need. 4. Aircraft Manufacturing sector, vital for national defense capabilities.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure allows for cost overruns. Benchmarking against similar sole-source sustainment contracts is difficult without more data, but the total value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher overall spending compared to a competitively bid contract.
Public Impact
Ensures continued operational readiness of the F-22 Raptor fleet. Supports advanced aerospace manufacturing jobs. Potential for cost inefficiencies due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee pricing
- Lack of competition
Positive Signals
- Essential for national defense
- Long-term sustainment plan
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment. Spending in this area is critical for maintaining military readiness, but often involves high costs due to specialized requirements and limited contractor options.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses within this contract. The prime contractor, Lockheed Martin, is a large corporation.
Oversight & Accountability
Oversight is crucial for cost-plus-fixed-fee contracts, especially sole-source awards. The Department of the Air Force is responsible for monitoring performance and costs to ensure value for taxpayer money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee structure can lead to cost overruns.
- Lack of transparency in pricing due to non-competitive nature.
- Long contract duration may mask inefficiencies over time.
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 $126.6 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 $126.6 million.
What is the period of performance?
Start: 2018-01-01. End: 2024-06-21.
What is the justification for the sole-source award, and were alternative competition strategies considered?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For complex systems like the F-22, the original equipment manufacturer often possesses unique knowledge and tooling. However, the government should rigorously assess if any competitive avenues, even for specific components or services, were overlooked to ensure the best possible price.
How are cost overruns managed and mitigated under this cost-plus-fixed-fee structure?
Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. Mitigation strategies typically involve robust government oversight, detailed cost tracking, performance metrics, and negotiation of incentive clauses. Regular audits and reviews are essential to ensure costs are reasonable and allocable, and that the fixed fee remains appropriate.
What performance metrics are in place to ensure the effectiveness of the F-22 sustainment services?
Effectiveness is likely measured through metrics such as aircraft availability rates, mission capable rates, turnaround times for repairs, and adherence to maintenance schedules. The contract should clearly define these Key Performance Indicators (KPIs) and link them to potential award fees or penalties to incentivize high performance and ensure the F-22 fleet remains combat-ready.
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: $126,568,982
Exercised Options: $126,568,982
Current Obligation: $126,568,982
Actual Outlays: $2,614,508
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: 2024-06-21
Potential End Date: 2024-06-21 00:00:00
Last Modified: 2025-04-09
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