DoD Awards $175.8M F-22 Sustainment Contract to Lockheed Martin, Raising Competition Concerns
Contract Overview
Contract Amount: $175,770,026 ($175.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-10-01
End Date: 2024-10-31
Contract Duration: 1,857 days
Daily Burn Rate: $94.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 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 $175.8 million to LOCKHEED MARTIN CORPORATION for work described as: COMPREHENSIVE F-22 AIR VEHICLE SUSTAINMENT SERVICES Key points: 1. Significant contract value for ongoing sustainment of a critical defense asset. 2. Sole-source award to incumbent contractor raises questions about price discovery and competition. 3. High risk associated with reliance on a single provider for advanced aircraft maintenance. 4. Spending falls within the broad 'Aircraft Manufacturing' sector, but specific sustainment benchmarks are key.
Value Assessment
Rating: questionable
The contract value of $175.8 million over five years for F-22 sustainment needs careful benchmarking against similar complex aircraft support contracts. Without competitive bidding, it's difficult to assess if this price represents fair value.
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 lack of competition limits the government's ability to leverage market forces for potentially better pricing and innovative solutions.
Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers compared to a scenario where multiple vendors could bid on providing these essential sustainment services.
Public Impact
Ensures continued operational readiness of the F-22 Raptor fleet, a key strategic asset. Supports high-skilled jobs within the aerospace and defense industry. Potential for cost overruns due to lack of competitive pressure on the sole-source provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost creep without competitive pressure.
- High reliance on a single contractor for critical sustainment.
Positive Signals
- Ensures continuity of essential F-22 sustainment.
- Leverages incumbent contractor's specialized knowledge.
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically focusing on the sustainment of advanced fighter jets. Spending benchmarks for such specialized, long-term support contracts are often unique and highly dependent on the specific platform's complexity and operational tempo.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract. The primary contractor, Lockheed Martin, is a large aerospace corporation, suggesting limited direct opportunities for small businesses within this specific award.
Oversight & Accountability
Oversight will be crucial to ensure Lockheed Martin adheres to the Cost Plus Fixed Fee structure and delivers services effectively. The Department of the Air Force must actively monitor performance and costs to mitigate risks associated with the sole-source nature of this contract.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for cost overruns
- Lack of competitive pricing pressure
- High reliance on incumbent contractor
- Complexity of F-22 sustainment
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 $175.8 million to LOCKHEED MARTIN CORPORATION. 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 $175.8 million.
What is the period of performance?
Start: 2019-10-01. End: 2024-10-31.
What is the historical cost performance of Lockheed Martin on F-22 sustainment, and how does it compare to industry benchmarks for similar aircraft?
Analyzing Lockheed Martin's past performance on F-22 sustainment is critical. Without this data, it's challenging to establish a baseline for cost efficiency. Comparing this contract's projected costs against industry benchmarks for comparable advanced fighter jet sustainment programs would reveal potential areas of overspending or exceptional value, informing future negotiation strategies.
What steps are being taken to ensure fair pricing and prevent cost overruns in this sole-source F-22 sustainment contract?
Given the sole-source nature, robust oversight mechanisms are essential. This includes detailed cost audits, performance metrics tied to payment, and regular reviews of the contractor's cost proposals. The Department of the Air Force should actively engage in price negotiation and justification, potentially utilizing independent cost estimates to validate the reasonableness of Lockheed Martin's charges.
How does the lack of competition for F-22 sustainment impact the long-term affordability and technological advancement of the F-22 program?
The absence of competition can lead to higher long-term sustainment costs for taxpayers, as market pressures that drive efficiency and innovation are absent. It may also stifle the adoption of new technologies or more cost-effective maintenance approaches that could emerge from a competitive environment, potentially impacting the F-22's overall lifecycle affordability and readiness.
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: $175,770,026
Exercised Options: $175,770,026
Current Obligation: $175,770,026
Actual Outlays: $21,723,394
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: 2019-10-01
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2025-08-18
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