DoD awards $46.5M for F-22 training systems software, a sole-source contract to Lockheed Martin
Contract Overview
Contract Amount: $46,468,581 ($46.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-21
End Date: 2023-03-31
Contract Duration: 1,134 days
Daily Burn Rate: $41.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 SUSTAINMENT: TRAINING SYSTEMS SOFTWARE ANNUAL REQUIREMENTS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $46.5 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 SUSTAINMENT: TRAINING SYSTEMS SOFTWARE ANNUAL REQUIREMENTS Key points: 1. Significant annual spending on sustainment for a key defense asset. 2. Sole-source award to incumbent contractor raises questions about price discovery. 3. High cost per unit suggests specialized, potentially expensive, software development. 4. Focus on training systems highlights the importance of operational readiness.
Value Assessment
Rating: questionable
The contract value of $46.5M over three years for annual software requirements is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential alternatives or industry benchmarks for similar complex sustainment software.
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 better pricing and potentially innovative solutions.
Taxpayer Impact: Taxpayer funds are committed without competitive pressure, potentially leading to higher costs than if the contract were open to multiple bidders.
Public Impact
Ensures continued training capabilities for F-22 pilots, crucial for national security. Supports the operational readiness of a critical, advanced fighter aircraft. Sustains a high-tech software development workforce within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High contract value warrants scrutiny for cost-effectiveness.
- Lack of clear per-unit cost benchmark makes value assessment difficult.
Positive Signals
- Essential for maintaining advanced military training systems.
- Supports a critical defense platform (F-22).
Sector Analysis
This spending falls within the Defense sector, specifically related to aircraft manufacturing and sustainment. Annual software sustainment contracts for complex military platforms can be substantial, often exceeding tens of millions of dollars, especially when sole-sourced.
Small Business Impact
The data does not indicate any direct subcontracting to small businesses. The primary awardee is a large corporation, suggesting limited direct opportunities for small businesses on this specific contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, oversees this contract. However, the sole-source nature limits the effectiveness of competitive oversight mechanisms for price discovery.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- Dependency on a single contractor
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 $46.5 million to LOCKHEED MARTIN CORPORATION. F-22 SUSTAINMENT: TRAINING SYSTEMS SOFTWARE ANNUAL REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.5 million.
What is the period of performance?
Start: 2020-02-21. End: 2023-03-31.
What is the justification for the sole-source award, and what steps are taken to ensure fair and reasonable pricing without competition?
Sole-source awards typically require a justification, such as unique capabilities or proprietary technology. The government should conduct thorough price analysis, including cost breakdowns, historical pricing, and independent government cost estimates, to ensure the price paid is fair and reasonable despite the lack of competition.
How does the annual cost of this software sustainment compare to similar training systems for other advanced aircraft?
Benchmarking this $46.5M annual cost against similar sustainment contracts for other advanced aircraft is challenging without detailed cost breakdowns and scope of work comparisons. However, given the F-22's advanced nature and Lockheed Martin's sole-source position, the cost is likely at the higher end, necessitating careful review.
What is the long-term strategy for managing the sustainment costs of the F-22 training systems software?
The long-term strategy should explore options to introduce competition where feasible, perhaps through modularizing software components or developing alternative training solutions. Continuous review of cost trends and negotiation with the incumbent contractor are also vital to manage sustainment expenses effectively over the aircraft's lifecycle.
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: $59,109,122
Exercised Options: $46,468,581
Current Obligation: $46,468,581
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: 2020-02-21
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2025-10-29
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