Air Force awards $1.1B contract to Lockheed Martin for RAMP/MTB Phase B, with no competition
Contract Overview
Contract Amount: $11,031,426 ($11.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-23
End Date: 2027-09-17
Contract Duration: 2,459 days
Daily Burn Rate: $4.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM (RAMP) PROJECT AF100RF, MIGHTY TOUGH BOOT (MTB) PHASE B
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $11.0 million to LOCKHEED MARTIN CORPORATION for work described as: RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM (RAMP) PROJECT AF100RF, MIGHTY TOUGH BOOT (MTB) PHASE B Key points: 1. Significant investment in aircraft manufacturing for the RAMP/MTB project. 2. Sole-source award to Lockheed Martin raises questions about price discovery. 3. Long contract duration (2020-2027) suggests a substantial, ongoing need. 4. No small business participation noted in this award.
Value Assessment
Rating: questionable
The contract value of $1.1 billion is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value for the services and products provided by Lockheed Martin.
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.
Taxpayer Impact: The lack of competition for a contract of this magnitude could result in taxpayers paying a premium for the RAMP/MTB project.
Public Impact
Impacts Air Force readiness and capabilities through the RAMP/MTB program. Potential for cost overruns due to the sole-source nature of the award. Highlights reliance on a single contractor for critical aircraft manufacturing components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Supports critical Air Force program
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key area for defense spending. Benchmarks for similar sole-source contracts in this sector are often scrutinized for cost-effectiveness.
Small Business Impact
The data indicates no small business participation in this specific award. Efforts to include small businesses in defense supply chains are often a priority.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government receives fair value and that the contractor meets all performance requirements.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding may lead to inflated costs.
- Potential for contractor lock-in and reduced future negotiating power.
- Limited transparency into pricing due to sole-source nature.
- Long contract duration increases exposure to market and technological changes.
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 $11.0 million to LOCKHEED MARTIN CORPORATION. RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM (RAMP) PROJECT AF100RF, MIGHTY TOUGH BOOT (MTB) PHASE B
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 $11.0 million.
What is the period of performance?
Start: 2020-12-23. End: 2027-09-17.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. Without further details, it's difficult to ascertain the specific reasons, but it's crucial for the agency to have documented this thoroughly to ensure it was the only viable option.
How will the Air Force ensure cost control and value for money with a sole-source contract?
The Air Force can implement robust cost control measures through detailed contract surveillance, performance metrics, and potentially incentive clauses. Regular reviews of contractor performance and cost submissions, alongside market research for future procurements, are essential to mitigate risks associated with sole-source awards.
What are the long-term implications of relying on a single supplier for this critical program?
Long-term reliance on a single supplier can create vendor lock-in, reduce negotiating leverage, and increase vulnerability to supply chain disruptions. It also limits opportunities for innovation from other companies. The Air Force should consider strategies for fostering competition in future phases or developing alternative capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $12,151,708
Exercised Options: $12,151,708
Current Obligation: $11,031,426
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: 2020-12-23
Current End Date: 2027-09-17
Potential End Date: 2027-09-17 00:00:00
Last Modified: 2025-12-18
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