DoD awards $18.4M F-22 sustainment contract to Lockheed Martin, extending through 2025
Contract Overview
Contract Amount: $18,425,271 ($18.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-07-17
End Date: 2025-03-12
Contract Duration: 2,430 days
Daily Burn Rate: $7.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 SUSTAINMENT FOR RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM 2018 APPROVED SOLUTION IDENTIFICATION INDIVIDUAL PROJECTS (SERVICE)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 SUSTAINMENT FOR RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM 2018 APPROVED SOLUTION IDENTIFICATION INDIVIDUAL PROJECTS (SERVICE) Key points: 1. High value contract for critical aircraft sustainment. 2. Sole-source award to incumbent contractor raises competition concerns. 3. Long-term contract duration may limit future price negotiation. 4. Focus on reliability, availability, and maintainability is key for operational readiness.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure allows for cost reimbursement plus a predetermined profit. Without competitive bidding, it's difficult to assess if this pricing is optimal compared to market rates for similar sustainment services.
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 than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition for essential F-22 sustainment services.
Public Impact
Ensures continued operational readiness of the F-22 fleet. Supports advanced aerospace manufacturing and maintenance capabilities. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
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 benchmarks for such long-term, sole-source sustainment contracts can vary widely, but often represent significant investments.
Small Business Impact
The provided data does not indicate any specific provisions or benefits for small businesses in this sole-source contract award.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Robust oversight is crucial to manage costs and ensure performance given the sole-source nature.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration may not reflect current market conditions.
- Lack of small business participation noted.
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 $18.4 million to LOCKHEED MARTIN CORPORATION. F-22 SUSTAINMENT FOR RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM 2018 APPROVED SOLUTION IDENTIFICATION INDIVIDUAL PROJECTS (SERVICE)
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 $18.4 million.
What is the period of performance?
Start: 2018-07-17. End: 2025-03-12.
What is the projected cost-effectiveness of this sole-source contract over its full duration?
Assessing cost-effectiveness is challenging without competitive benchmarks. The cost-plus-fixed-fee structure, combined with a sole-source award, suggests potential for costs to exceed what might be achieved through competition. Future reviews should focus on performance metrics and cost trends.
What are the risks associated with relying solely on Lockheed Martin for F-22 sustainment?
The primary risk is vendor lock-in, potentially leading to escalating costs and reduced flexibility. Dependence on a single supplier can also impact innovation and responsiveness to evolving maintenance needs. Mitigation strategies might include exploring future competition or alternative sustainment approaches.
How does this contract contribute to the overall readiness and effectiveness of the F-22 program?
This contract is critical for ensuring the F-22 fleet remains reliable, available, and maintainable, directly supporting its combat readiness. Sustained investment in these areas is essential for the aircraft's long-term operational effectiveness and its role in national security.
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
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: $18,425,271
Exercised Options: $18,425,271
Current Obligation: $18,425,271
Actual Outlays: $312,493
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $-46,262
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: 2018-07-17
Current End Date: 2025-03-12
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2025-03-12
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