DoD awards $88.3M to Lockheed Martin for F-22 information systems software support

Contract Overview

Contract Amount: $88,307,759 ($88.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2028-05-31

Contract Duration: 2,800 days

Daily Burn Rate: $31.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F-22 INFORMATION SYSTEMS SOFTWARE SUPPORT SERVICES

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $88.3 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 INFORMATION SYSTEMS SOFTWARE SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long-term contract duration (2020-2028) suggests critical, ongoing support needs. 3. Cost-plus-fixed-fee contract type may incentivize cost overruns. 4. No small business set-aside indicates a focus on large prime contractors. 5. The contract supports essential information systems for the F-22 fighter jet. 6. High value suggests significant reliance on contractor expertise for sustainment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns and comparisons to similar sole-source sustainment contracts. The cost-plus-fixed-fee structure, while common for complex systems, carries inherent risks of cost escalation. The total value of $88.3 million over nearly eight years suggests a substantial investment in maintaining critical software for the F-22 fleet. Without competitive bidding, it's difficult to definitively assess if this represents optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a single contractor possesses unique capabilities, proprietary knowledge, or when urgent needs preclude a full and open competition. The lack of competition means that taxpayers do not benefit from the price discovery that typically occurs in a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no market pressure to drive down costs. This limits the government's ability to secure the best possible price for essential services.

Public Impact

The U.S. Air Force benefits from continued operational readiness of the F-22 Raptor fleet. Essential software support services ensure the functionality and security of F-22 information systems. The contract supports high-tech jobs within the aerospace and defense sector, primarily at Lockheed Martin. Geographic impact is likely concentrated around Lockheed Martin facilities and Air Force bases operating the F-22.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contract type can lead to cost overruns.
Long contract duration may not adapt to evolving technological needs without modification.
Lack of small business involvement limits opportunities for specialized subcontractors.

Positive Signals

Ensures continued support for a critical national defense asset (F-22).
Leverages incumbent contractor's specialized knowledge of F-22 systems.
Provides stable, long-term support crucial for complex aircraft sustainment.
Contract structure aims to provide a defined profit margin for the contractor.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing support services. The market for specialized software sustainment for advanced military platforms like the F-22 is highly concentrated, with a few prime contractors dominating. Spending in this area is critical for maintaining the operational readiness and technological edge of advanced weapon systems, representing a significant portion of defense budgets.

Small Business Impact

This contract does not appear to include a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses. The nature of F-22 sustainment likely requires deep integration with the prime contractor's existing systems and expertise, which may limit the scope for small business participation. This could mean fewer opportunities for the small business ecosystem to contribute to this specific program.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics and reporting requirements. Transparency may be limited due to the sole-source nature and the classified aspects of F-22 systems. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

F-22 Raptor Sustainment
Aerospace Information Systems Support
Defense Software Maintenance Contracts
Lockheed Martin Defense Contracts
Air Force Aircraft Support

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long contract duration
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.3 million to LOCKHEED MARTIN CORPORATION. F-22 INFORMATION SYSTEMS SOFTWARE SUPPORT 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 $88.3 million.

What is the period of performance?

Start: 2020-09-30. End: 2028-05-31.

What is Lockheed Martin's track record with F-22 sustainment contracts?

Lockheed Martin Corporation, as the prime contractor for the F-22 program, has a long-standing and extensive track record in supporting the aircraft's sustainment, including its information systems. Their history with the F-22 dates back to its development and production. This includes managing complex supply chains, providing engineering support, and ensuring the operational readiness of the aircraft. Their deep institutional knowledge and established infrastructure are key reasons for their continued role in F-22 sustainment. Past performance reviews and contract closeouts would provide more granular detail on their specific performance metrics, adherence to schedules, and cost management on previous F-22 support efforts.

How does the $88.3 million value compare to similar F-22 sustainment efforts?

Comparing the $88.3 million value requires context on the specific services covered and the contract duration. This contract spans from September 30, 2020, to May 31, 2028, totaling approximately 92 months. This equates to an average annual spend of roughly $9.6 million. This figure needs to be benchmarked against historical F-22 sustainment spending and similar sole-source support contracts for other advanced military aircraft. Factors such as the scope of software updates, cybersecurity enhancements, and system integration efforts will influence the overall cost. Without access to detailed service level agreements and historical spending data for comparable contracts, a precise value comparison is difficult.

What are the primary risks associated with this sole-source, cost-plus-fixed-fee contract?

The primary risks associated with this contract stem from its sole-source and cost-plus-fixed-fee (CPFF) nature. Sole-sourcing eliminates competitive pressure, potentially leading to higher costs and reduced incentive for efficiency. The CPFF structure, while providing flexibility for evolving requirements, carries the risk of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize higher spending if not rigorously managed. Additionally, the long duration (nearly 8 years) introduces risks related to technological obsolescence and the potential for the contractor's expertise to become siloed, making future transitions more difficult. Effective government oversight and robust cost control measures are critical to mitigating these risks.

How effective is this contract in ensuring the F-22's long-term operational effectiveness?

This contract is designed to ensure the F-22's long-term operational effectiveness by providing essential software support services. The F-22 is a highly complex platform whose effectiveness relies heavily on its integrated information systems, which require continuous maintenance, updates, and cybersecurity vigilance. By awarding this contract to Lockheed Martin, the Air Force leverages the contractor's deep understanding of the F-22's unique architecture. The long duration suggests a commitment to sustained support, which is crucial for maintaining the aircraft's advanced capabilities against evolving threats. However, the effectiveness is contingent on robust government oversight to ensure the contractor delivers high-quality services and manages costs appropriately.

What are the historical spending patterns for F-22 information systems support?

Historical spending patterns for F-22 information systems support have likely been substantial, reflecting the complexity and advanced nature of the aircraft. As a fifth-generation fighter, the F-22 relies on sophisticated avionics, sensor fusion, and communication systems, all underpinned by complex software. Sustainment costs for such platforms are typically significant and span decades. While specific figures for 'information systems software support' are not readily available in the provided data, overall F-22 sustainment costs have been a subject of discussion within defense budgeting. These costs generally include maintenance, upgrades, logistics, and contractor support. Spending tends to remain high throughout the operational life of such a critical asset, especially given the need for continuous modernization and cybersecurity.

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: $88,307,759

Exercised Options: $88,307,759

Current Obligation: $88,307,759

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