DoD Awards $82.6M to Lockheed Martin for F-22 Antenna Electronics Sustainment Amid DMSMS Concerns
Contract Overview
Contract Amount: $82,606,070 ($82.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-08-20
End Date: 2026-06-30
Contract Duration: 2,140 days
Daily Burn Rate: $38.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 AIR VEHICLE SUSTAINMENT MITIGATION OF DIMINISHING MANUFACTURING SOURCES AND MATERIAL SHORTAGES FOR THE ANTENNA ELECTRONICS UNIT/ANTENNA SWITCHING UNIT INTEGRATED MICROWAVE ASSEMBLY
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $82.6 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 AIR VEHICLE SUSTAINMENT MITIGATION OF DIMINISHING MANUFACTURING SOURCES AND MATERIAL SHORTAGES FOR THE ANTENNA ELECTRONICS UNIT/ANTENNA SWITCHING UNIT INTEGRATED MICROWAVE ASSEMBLY Key points: 1. Sustainment focus on critical F-22 components addresses manufacturing challenges. 2. Sole-source award to incumbent Lockheed Martin raises competition concerns. 3. High value contract for specialized aircraft parts indicates significant program investment. 4. Mitigation of Diminishing Manufacturing Sources and Material Shortages (DMSMS) is a key driver.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific unit cost data, but the overall value suggests a significant investment in sustainment for a complex defense system.
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 program and the incumbent's sole access to necessary technical data and manufacturing capabilities. The lack of competition limits price discovery and potentially increases costs.
Taxpayer Impact: Taxpayer funds are directed to a single contractor without competitive pressure, potentially leading to higher overall costs for sustainment.
Public Impact
Ensures continued operational readiness of the F-22 fighter fleet. Addresses critical supply chain vulnerabilities for advanced aerospace components. Supports high-tech manufacturing jobs within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Sole-source award to incumbent
Positive Signals
- Addresses critical DMSMS issues
- Ensures F-22 operational capability
- Supports advanced manufacturing
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically focusing on sustainment and parts for a major defense platform. Spending benchmarks for sustainment of advanced fighter jets are typically high due to complexity and specialized requirements.
Small Business Impact
There is no indication of small business participation in this specific contract award. The nature of sole-source awards for highly specialized defense components often limits opportunities for small businesses.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust oversight to manage costs and ensure performance objectives are met, 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 and price negotiation.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Dependency on a single contractor for critical sustainment components.
- Lack of transparency regarding specific DMSMS mitigation strategies.
- Potential for increased long-term sustainment costs without competitive pressure.
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 $82.6 million to LOCKHEED MARTIN CORPORATION. F-22 AIR VEHICLE SUSTAINMENT MITIGATION OF DIMINISHING MANUFACTURING SOURCES AND MATERIAL SHORTAGES FOR THE ANTENNA ELECTRONICS UNIT/ANTENNA SWITCHING UNIT INTEGRATED MICROWAVE ASSEMBLY
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 $82.6 million.
What is the period of performance?
Start: 2020-08-20. End: 2026-06-30.
What specific DMSMS challenges are being addressed, and what is the long-term strategy to mitigate them beyond this contract?
The contract aims to mitigate Diminishing Manufacturing Sources and Material Shortages for the Antenna Electronics Unit/Antenna Switching Unit Integrated Microwave Assembly for the F-22. A long-term strategy would likely involve proactive parts obsolescence management, potential redesigns for more common components, or developing alternative suppliers through extensive qualification processes, which may require further investment.
Given the sole-source nature, how is the government ensuring fair and reasonable pricing for this Cost Plus Fixed Fee contract?
Ensuring fair and reasonable pricing for sole-source CPFF contracts typically involves rigorous negotiation, detailed cost analysis of the contractor's proposed budget, and comparison against historical data for similar work or components. The government may also require detailed justification from the contractor on why alternative sources are not viable and how costs were determined.
What is the projected impact of this contract on the F-22's operational readiness and lifespan?
This contract is crucial for maintaining the operational readiness of the F-22 fleet by ensuring the availability of critical electronic components. By addressing DMSMS, it directly mitigates risks of mission capability degradation and extends the effective lifespan of the aircraft's complex systems, allowing it to remain a viable asset.
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: $82,606,070
Exercised Options: $82,606,070
Current Obligation: $82,606,070
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: 2020-08-20
Current End Date: 2026-06-30
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-07-31
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