DoD Awards $45.6M to Lockheed Martin for F-22 Missile Detector Sustainment Amid Material Shortages
Contract Overview
Contract Amount: $45,595,823 ($45.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-29
End Date: 2025-07-31
Contract Duration: 2,436 days
Daily Burn Rate: $18.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 AIR VEHICLE SUSTAINMENT; DEVELOP MODIFIED DESIGN SOLUTION TO MITIGATE DIMINISHING MANUFACTURING SOURCES MATERIAL SHORTAGES FOR THE MISSILE LAUNCH DETECTOR.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $45.6 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 AIR VEHICLE SUSTAINMENT; DEVELOP MODIFIED DESIGN SOLUTION TO MITIGATE DIMINISHING MANUFACTURING SOURCES MATERIAL SHORTAGES FOR THE MISSILE LAUNCH DETECTOR. Key points: 1. Significant investment in sustaining aging F-22 fleet. 2. Sole-source award to Lockheed Martin highlights potential single-point-of-failure risk. 3. Focus on mitigating manufacturing source issues indicates long-term sustainment challenges. 4. High-value contract within the Aircraft Manufacturing sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar sustainment contracts for advanced aircraft is difficult due to the unique nature of the F-22 program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the F-22 and the specific components requiring modification. The lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: Taxpayers bear the full cost of this sole-source award, with limited opportunity for competitive pricing to reduce the financial burden.
Public Impact
Ensures continued operational readiness of the F-22 fighter jet fleet. Addresses critical supply chain vulnerabilities for essential aircraft components. Supports high-tech manufacturing jobs within the aerospace industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost-plus contract type carries inherent risk of cost overruns.
- Dependency on a single manufacturer for critical sustainment.
Positive Signals
- Addresses critical diminishing manufacturing sources.
- Maintains readiness of a key strategic asset.
- Focus on technological solutions for material shortages.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is characterized by high R&D costs, long production cycles, and significant government reliance. Spending benchmarks for specialized sustainment of advanced platforms like the F-22 are often unique and not directly comparable to broader manufacturing indices.
Small Business Impact
This contract does not appear to directly involve small businesses as prime contractors. The nature of F-22 sustainment and component manufacturing typically requires large, specialized aerospace firms.
Oversight & Accountability
The Department of the Air Force is the contracting agency. Oversight will be crucial to manage the cost-plus fixed fee structure and ensure the effectiveness of the modified design solution in mitigating material shortages.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Dependency on Lockheed Martin
- Long-term sustainment challenges for aging aircraft
- Potential for cost overruns
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 $45.6 million to LOCKHEED MARTIN CORPORATION. F-22 AIR VEHICLE SUSTAINMENT; DEVELOP MODIFIED DESIGN SOLUTION TO MITIGATE DIMINISHING MANUFACTURING SOURCES MATERIAL SHORTAGES FOR THE MISSILE LAUNCH DETECTOR.
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 $45.6 million.
What is the period of performance?
Start: 2018-11-29. End: 2025-07-31.
What is the projected cost savings or efficiency gain from the modified design solution compared to alternative approaches?
The specific cost savings or efficiency gains from the modified design solution are not detailed in the provided data. However, the primary objective is to mitigate diminishing manufacturing sources and material shortages, which implies a long-term cost avoidance strategy by ensuring continued availability of critical parts and reducing the risk of mission capability degradation.
What are the specific risks associated with the diminishing manufacturing sources and material shortages for the missile launch detector?
The primary risk is the potential inability to repair or maintain the missile launch detector due to the unavailability of original manufacturing sources or materials. This could lead to reduced combat effectiveness of the F-22, increased downtime for aircraft requiring these parts, and potentially higher costs if emergency, non-standard solutions are required.
How effective is the chosen 'modified design solution' in addressing the root causes of the manufacturing source issues?
The effectiveness of the 'modified design solution' is yet to be fully determined as it is a development effort. Its success hinges on the ability to create a viable, producible alternative that meets stringent military specifications and can be integrated without compromising the F-22's performance or safety. The long contract duration suggests a complex challenge.
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: $45,595,823
Exercised Options: $45,595,823
Current Obligation: $45,595,823
Actual Outlays: $3,490,024
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $7,464,430
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: 2018-11-29
Current End Date: 2025-07-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-04-28
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