DoD Awards $101M F-22 Sustainment Contract to Lockheed Martin, Extending to 2031
Contract Overview
Contract Amount: $101,259,229 ($101.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-04-02
End Date: 2031-06-30
Contract Duration: 4,837 days
Daily Burn Rate: $20.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COMPREHENSIVE F-22 VEHICLE SUSTAINMENT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $101.3 million to LOCKHEED MARTIN CORPORATION for work described as: COMPREHENSIVE F-22 VEHICLE SUSTAINMENT Key points: 1. Significant long-term contract for critical aircraft maintenance. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. High value suggests substantial ongoing investment in F-22 fleet. 4. Potential for cost overruns given cost-plus contract type.
Value Assessment
Rating: questionable
The contract value of $101M over its duration is substantial. However, without specific per-unit cost data or benchmarks for F-22 sustainment, a direct value assessment is difficult. The cost-plus-fixed-fee structure warrants scrutiny for potential inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded solely to Lockheed Martin Corporation, the original manufacturer. This lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium due to the absence of competitive bidding, potentially increasing the overall cost of F-22 sustainment.
Public Impact
Ensures continued operational readiness of the F-22 Raptor fighter jet fleet. Supports high-skilled jobs in aerospace manufacturing and maintenance. Long-term commitment impacts future defense budget allocations. Potential for technology obsolescence if sustainment doesn't keep pace.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Sole-source award
Positive Signals
- Ensures critical capability sustainment
- Supports experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending benchmarks for such long-term, sole-source sustainment contracts are often high due to the specialized nature of advanced military platforms like the F-22.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited to subcontracting roles.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to manage costs under the cost-plus-fixed-fee structure and ensure performance meets requirements, especially 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 competition
- Cost-plus contract type may inflate costs
- Long duration increases risk exposure
- Lack of transparency on per-unit costs
- Potential for contractor inefficiency
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 $101.3 million to LOCKHEED MARTIN CORPORATION. COMPREHENSIVE F-22 VEHICLE SUSTAINMENT
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 $101.3 million.
What is the period of performance?
Start: 2018-04-02. End: 2031-06-30.
What is the historical cost performance of similar F-22 sustainment contracts awarded on a sole-source basis?
Historical data on sole-source F-22 sustainment contracts is essential for evaluating the current award's value. Without this, it's difficult to determine if Lockheed Martin's pricing is competitive or inflated. Past performance can reveal trends in cost overruns or efficiencies, providing a crucial benchmark for taxpayer impact and justifying the lack of competition.
What are the specific risks associated with extending F-22 sustainment through 2031 under a cost-plus-fixed-fee arrangement?
The primary risk is cost escalation, as the cost-plus-fixed-fee structure incentivizes higher spending rather than cost savings. Extending to 2031 increases exposure to potential inefficiencies and unforeseen maintenance challenges. Without robust oversight and clear performance metrics, the government risks paying significantly more than necessary for sustainment.
How effectively does this contract ensure the long-term operational readiness and technological relevance of the F-22 fleet?
The contract's effectiveness hinges on Lockheed Martin's execution and the Air Force's oversight. While it ensures sustainment, the sole-source nature and cost-plus structure might not drive innovation or cost-effective upgrades needed for long-term technological relevance. Continuous monitoring and potential future competitive actions for specific upgrades are necessary.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: $101,259,229
Exercised Options: $101,259,229
Current Obligation: $101,259,229
Actual Outlays: $3,014,876
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: 2018-04-02
Current End Date: 2031-06-30
Potential End Date: 2031-06-30 00:00:00
Last Modified: 2025-09-30
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