DoD's $233M F-22 Sustainment Contract Awarded to Lockheed Martin, Raising Competition Concerns
Contract Overview
Contract Amount: $232,911,146 ($232.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-01
End Date: 2026-06-30
Contract Duration: 2,006 days
Daily Burn Rate: $116.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COMPREHENSIVE F-22 AIR VEHICLE SUSTAINMENT: WEAPON SYSTEM INTEGRITY PROGRAM
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $232.9 million to LOCKHEED MARTIN CORPORATION for work described as: COMPREHENSIVE F-22 AIR VEHICLE SUSTAINMENT: WEAPON SYSTEM INTEGRITY PROGRAM Key points: 1. Significant contract value for sustainment of a key defense asset. 2. Sole awardee raises questions about competitive pricing and innovation. 3. Potential risk associated with single-source reliance for critical aircraft maintenance. 4. Spending falls within the broad 'Aircraft Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $232.9 million for F-22 sustainment is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar complex aircraft sustainment programs.
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 limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive rates.
Taxpayer Impact: The lack of competition for this significant sustainment contract may result in taxpayers paying a premium for F-22 maintenance and support.
Public Impact
Impacts the operational readiness of the F-22 Raptor, a critical component of national defense. Affects the aerospace and defense industry, particularly concerning sole-source contract awards. Raises questions about long-term cost-effectiveness for maintaining advanced military platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Ensures continued support for a vital defense asset
- Leverages incumbent contractor's specialized knowledge
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically focusing on sustainment for the F-22 fighter jet. Spending benchmarks for such specialized, high-tech defense platforms are often high due to complexity and limited contractor pool.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is receiving the best possible value and that the contractor is performing efficiently and effectively.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of market pressure.
- Dependency on a single contractor for critical system.
- Limited transparency on pricing justification.
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 $232.9 million to LOCKHEED MARTIN CORPORATION. COMPREHENSIVE F-22 AIR VEHICLE SUSTAINMENT: WEAPON SYSTEM INTEGRITY PROGRAM
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 $232.9 million.
What is the period of performance?
Start: 2021-01-01. End: 2026-06-30.
What is the justification for awarding this F-22 sustainment contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary knowledge held by the incumbent contractor. Oversight bodies should rigorously review this justification and demand detailed cost breakdowns to ensure fair pricing. Mechanisms like independent cost estimates and benchmarking against similar contracts, even if imperfect, are crucial for taxpayer protection.
What are the long-term risks associated with relying solely on Lockheed Martin for F-22 sustainment, particularly regarding technological obsolescence and future upgrades?
The primary long-term risk is dependence on a single provider, which can stifle innovation and lead to higher costs for future upgrades or modifications. If Lockheed Martin's strategic priorities shift, F-22 sustainment could be deprioritized. The Air Force should actively explore strategies to mitigate this, such as developing in-house capabilities or fostering competition for specific sustainment components.
How does the cost of this F-22 sustainment contract compare to similar programs for other advanced fighter jets, and what is the projected taxpayer impact over the contract's duration?
Without competitive data, direct cost comparison is challenging. However, sustainment costs for advanced platforms are inherently high due to complexity, specialized labor, and parts. The $233 million over approximately 5.5 years suggests a significant annual expenditure. A thorough analysis of cost trends and total lifecycle costs is necessary to understand the full taxpayer impact.
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: FA820521R0302
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: $407,684,170
Exercised Options: $232,911,146
Current Obligation: $232,911,146
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: 2021-01-01
Current End Date: 2026-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2025-12-31
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