Air Force awards $42.2M contract to Lockheed Martin for fiber infrastructure, impacting aircraft manufacturing
Contract Overview
Contract Amount: $42,216,812 ($42.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-01
End Date: 2026-04-30
Contract Duration: 2,982 days
Daily Burn Rate: $14.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AF205R FIBER INFRASTRUCTURE MATURATION PROGRAM
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $42.2 million to LOCKHEED MARTIN CORPORATION for work described as: AF205R FIBER INFRASTRUCTURE MATURATION PROGRAM Key points: 1. Significant investment in critical infrastructure for aircraft manufacturing. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long-term contract duration (2018-2026) suggests ongoing program needs. 4. Firm Fixed Price contract type offers cost certainty for the government.
Value Assessment
Rating: fair
The contract value of $42.2 million over nearly 8 years appears substantial for fiber infrastructure. Benchmarking against similar large-scale infrastructure projects within defense would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The rationale for sole-sourcing needs further investigation.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this fiber infrastructure.
Public Impact
Ensures continued operational capability for Air Force aircraft programs. Supports advanced manufacturing and technological development within the defense sector. Potential for job creation and economic impact in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Firm Fixed Price contract
- Supports critical defense infrastructure
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing. Spending benchmarks for similar infrastructure maturation programs within the DoD are difficult to ascertain without more specific program details.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited direct impact on small businesses.
Oversight & Accountability
Oversight would focus on contract performance, adherence to the firm fixed price, and justification for the sole-source award. Regular reporting and milestone reviews are crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing due to sole-source award
- Risk of technological obsolescence over the contract's long duration
- Limited transparency on specific program requirements and performance metrics
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 $42.2 million to LOCKHEED MARTIN CORPORATION. AF205R FIBER INFRASTRUCTURE MATURATION PROGRAM
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 $42.2 million.
What is the period of performance?
Start: 2018-03-01. End: 2026-04-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must conduct a thorough market research and price analysis to ensure the negotiated price is fair and reasonable, often comparing it to historical data or independent cost estimates.
How does the long duration of this contract (2018-2026) impact the government's ability to adapt to evolving technological requirements in fiber infrastructure?
A long contract duration can pose a risk of technological obsolescence. While firm fixed price provides cost certainty, it may not incentivize the contractor to incorporate the latest advancements unless specifically required by contract modifications. The government should have mechanisms for contract review and potential renegotiation to incorporate newer technologies.
What are the key performance indicators (KPIs) for this contract, and how is the government measuring the effectiveness of the fiber infrastructure maturation program?
Effective measurement would involve tracking KPIs such as network uptime, data transfer speeds, latency, system reliability, and successful integration with existing Air Force systems. The government should be conducting regular performance assessments against these metrics to ensure the program is meeting its objectives and delivering the intended value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sikorsky Support Services Inc
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: $42,216,812
Exercised Options: $42,216,812
Current Obligation: $42,216,812
Actual Outlays: $278,387
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: 2018-03-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2024-03-27
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