Air Force awards $7M F-22 sustainment contract to Lockheed Martin for critical bulb seals

Contract Overview

Contract Amount: $6,988,101 ($7.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2022-11-04

End Date: 2029-12-31

Contract Duration: 2,614 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-22 SUSTAINMENT, RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM (RAMP) PROJECT 2AF190R PHASE 2: PROCUREMENT OF BULB SEALS AND NRE

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 SUSTAINMENT, RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM (RAMP) PROJECT 2AF190R PHASE 2: PROCUREMENT OF BULB SEALS AND NRE Key points: 1. Contract focuses on sustainment and reliability of the F-22 fleet. 2. Sole-source award to incumbent contractor raises questions about competition. 3. Long-term contract duration suggests ongoing need for these components. 4. Firm-fixed-price structure aims to control costs, but NRE adds complexity. 5. Geographic concentration in Texas for this critical defense component. 6. Lack of competition may limit opportunities for cost savings.

Value Assessment

Rating: fair

The contract value of $6.99 million for F-22 sustainment components appears reasonable given the specialized nature of military aircraft parts and the sole-source award to the original equipment manufacturer. However, without competitive bidding, it is difficult to benchmark the true value for money. The inclusion of Non-Recurring Engineering (NRE) suggests development or modification work, which can be a significant cost driver. Further analysis would require comparing the per-unit cost of these bulb seals to historical data or similar components for other aircraft platforms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Lockheed Martin Corporation, the original manufacturer of the F-22 aircraft. This approach is often taken for specialized parts where only the original manufacturer possesses the necessary technical data, tooling, or intellectual property. While this ensures compatibility and quality, it significantly limits price discovery and may lead to higher costs for the government compared to a competed procurement.

Taxpayer Impact: The lack of competition means taxpayers are likely paying a premium for these F-22 components, as there was no opportunity for other suppliers to bid and potentially offer lower prices.

Public Impact

The primary beneficiaries are the U.S. Air Force's F-22 Raptor fighter jet fleet, ensuring operational readiness. Services delivered include the procurement of critical bulb seals and associated non-recurring engineering. The geographic impact is concentrated in Texas, where the contract will be performed. Workforce implications include the potential for continued employment at Lockheed Martin facilities involved in F-22 sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration could lead to cost escalation if not managed effectively.
Reliance on a single supplier for critical components poses a supply chain risk.

Positive Signals

Firm-fixed-price contract provides cost certainty for the base procurement.
Focus on sustainment ensures continued operational capability of a key defense asset.
Award to incumbent contractor leverages existing knowledge and infrastructure for F-22.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting the sustainment of advanced fighter aircraft. The F-22 program represents a significant investment in national defense, and its ongoing maintenance is crucial for maintaining air superiority. Spending on sustainment and upgrades for legacy platforms like the F-22 is a consistent feature of the defense budget, often involving sole-source contracts with prime manufacturers due to the highly specialized and proprietary nature of the technology.

Small Business Impact

This contract does not appear to involve a small business set-aside. Given the sole-source nature and the prime contractor being Lockheed Martin, a large aerospace corporation, the likelihood of significant subcontracting opportunities for small businesses directly related to this specific delivery order is low, unless Lockheed Martin proactively engages them for specific components or services not covered by their internal capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is facilitated through contract databases, but detailed insights into performance metrics and cost justifications may be limited. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

F-22 Raptor Sustainment Programs
Air Force Aircraft Component Procurement
Defense Logistics and Maintenance Contracts
Lockheed Martin Defense Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns due to NRE

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to LOCKHEED MARTIN CORPORATION. F-22 SUSTAINMENT, RELIABILITY AVAILABILITY MAINTAINABILITY PROGRAM (RAMP) PROJECT 2AF190R PHASE 2: PROCUREMENT OF BULB SEALS AND NRE

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 $7.0 million.

What is the period of performance?

Start: 2022-11-04. End: 2029-12-31.

What is the historical spending trend for F-22 sustainment, and how does this contract compare?

Historical spending on F-22 sustainment has been substantial, reflecting the complexity and advanced technology of the aircraft. The F-22 program has consistently required significant funding for maintenance, upgrades, and spare parts to ensure the fleet's readiness. This $6.99 million contract for bulb seals and NRE is a component of that larger sustainment effort. Without access to detailed historical data for this specific component or similar sustainment activities, a precise comparison is difficult. However, the ongoing need for such parts underscores the long-term cost associated with operating advanced military platforms. The Air Force's total obligation authority for F-22 sustainment over its lifecycle is in the billions, making this specific contract a relatively small, albeit critical, part of the overall expenditure.

What are the specific risks associated with a sole-source award for critical aircraft components?

Sole-source awards for critical aircraft components like F-22 bulb seals present several risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from market forces driving down costs. This can result in taxpayers paying more than necessary. Secondly, it creates a dependency on a single supplier, which can be problematic if that supplier experiences production issues, financial instability, or decides to discontinue the product line. This dependency also reduces leverage for the government in negotiating terms or demanding improvements. Furthermore, without competitive pressure, there may be less incentive for the sole-source provider to innovate or improve efficiency in production or delivery, potentially impacting long-term availability and cost-effectiveness.

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

Lockheed Martin Corporation, as the prime contractor for the F-22 Raptor, has an extensive and established track record in its sustainment. They have been responsible for the aircraft's production, maintenance, and upgrade programs since its inception. Their long-standing relationship with the Air Force on the F-22 program means they possess deep institutional knowledge, specialized facilities, and proprietary data essential for keeping the fleet operational. While specific performance metrics for individual contracts are often not public, Lockheed Martin's continued role in F-22 sustainment suggests a generally satisfactory performance history in meeting the Air Force's requirements for this complex platform. However, the nature of sole-source awards means that performance is evaluated internally by the agency rather than through external competitive benchmarking.

How does the inclusion of Non-Recurring Engineering (NRE) impact the cost and scope of this contract?

The inclusion of Non-Recurring Engineering (NRE) in this contract signifies that the $6.99 million award covers not just the procurement of bulb seals but also initial development, design, testing, or modification activities related to these components. NRE costs are typically one-time expenses incurred to bring a product or process into existence. This means the total cost includes the effort required to establish the capability to produce or certify these specific bulb seals, rather than just purchasing existing inventory. While NRE is necessary for new or modified parts, it can significantly increase the overall contract value. The government must carefully scrutinize NRE proposals to ensure they are justified, accurately estimated, and that the resulting product or process offers long-term value and efficiency gains.

What are the potential implications of performing this contract in Texas?

The contract's performance location in Texas (ST: TX, SN: TEXAS) has several implications. Texas is a major hub for the aerospace and defense industry, with a significant presence of Lockheed Martin facilities and a skilled workforce experienced in aircraft manufacturing and sustainment. Performing the work there likely leverages existing infrastructure and supply chains, potentially leading to more efficient execution. For the local economy, it means continued job creation and economic activity related to the F-22 program. However, from a broader federal perspective, concentrating critical defense sustainment activities in a single geographic region can also introduce risks related to natural disasters or other localized disruptions. It also means that other regions with defense industry presence do not benefit from this specific contract award.

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

Solicitation ID: FA820521R0318

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: $11,776,379

Exercised Options: $11,776,379

Current Obligation: $6,988,101

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