Air Force awards $13.7M to Lockheed Martin for F-22 system integration, addressing end-of-life Windows migration

Contract Overview

Contract Amount: $13,688,406 ($13.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-31

End Date: 2027-12-31

Contract Duration: 1,217 days

Daily Burn Rate: $11.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-22 SYSTEM INTEGRATION LABORATORIES WINDOWS END OF LIFE MIGRATION

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 SYSTEM INTEGRATION LABORATORIES WINDOWS END OF LIFE MIGRATION Key points: 1. Contract addresses critical infrastructure modernization for the F-22 fighter jet program. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Long contract duration (over 3 years) requires careful performance monitoring. 4. Focus on system integration and software migration indicates a complex technical undertaking. 5. Geographic location in Texas may have implications for local technical expertise and support. 6. Firm-fixed-price contract shifts cost risk to the contractor, but requires clear scope definition.

Value Assessment

Rating: fair

Benchmarking this specific contract's value is challenging due to its specialized nature within the F-22 program. However, the $13.7 million award for system integration and software migration over more than three years suggests a significant investment. Without comparable sole-source contracts for similar legacy system upgrades on advanced aircraft, a definitive value-for-money assessment is difficult. The firm-fixed-price structure is generally favorable for cost control, provided the scope is well-defined and managed to prevent costly change orders.

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 prime contractor for the F-22 program. This approach is often used for specialized sustainment and integration tasks where only the original equipment manufacturer possesses the necessary technical data, expertise, and facilities. While this can ensure continuity and access to proprietary knowledge, it limits opportunities for competitive bidding and potentially higher prices.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding, potentially leading to higher overall costs for this critical system upgrade.

Public Impact

The F-22 Raptor fighter jet fleet benefits from modernized systems, ensuring continued operational readiness and effectiveness. Air Force pilots and ground crews will utilize updated software and integrated systems, improving mission capabilities. The contract supports specialized technical roles within Lockheed Martin, potentially involving engineers and software developers. Operations and maintenance of the F-22 program are sustained, contributing to national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source nature limits competitive pressure, potentially inflating costs.
Long contract duration increases risk of scope creep and cost overruns if not meticulously managed.
Reliance on a single contractor for critical system integration may create vendor lock-in.
End-of-life software migration presents inherent technical risks and potential compatibility issues.

Positive Signals

Firm-fixed-price contract aligns incentives for contractor efficiency.
Award to incumbent contractor ensures continuity and leverages existing program knowledge.
Addresses a critical need for system modernization, enhancing F-22 operational effectiveness.
Specific focus on integration and migration suggests a well-defined technical objective.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Contracts for advanced fighter jet sustainment and modernization, like this one for the F-22, are typically awarded to large, established prime contractors. The market for such specialized integration services is limited, often necessitating sole-source or limited competition awards to ensure access to proprietary data and technical expertise. Spending in this sub-sector is driven by the need to maintain the technological edge of aging but critical military platforms.

Small Business Impact

This contract does not appear to include specific small business set-asides. Given the sole-source nature and the specialized technical requirements for F-22 system integration, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available outside of the prime contractor's existing supply chain. The focus is on a highly specialized capability residing with the prime.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. Given the sole-source nature, robust performance monitoring and adherence to the firm-fixed-price terms will be crucial. Transparency may be limited due to the proprietary nature of the F-22 systems. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any irregularities were suspected.

Related Government Programs

F-22 Raptor Sustainment
Air Force Aircraft Modernization Programs
Defense Software and Systems Integration
Legacy System Migration Contracts

Risk Flags

Sole-source award
End-of-life software dependency
Long contract duration
Critical system integration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to LOCKHEED MARTIN CORPORATION. F-22 SYSTEM INTEGRATION LABORATORIES WINDOWS END OF LIFE MIGRATION

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 $13.7 million.

What is the period of performance?

Start: 2024-08-31. End: 2027-12-31.

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

Lockheed Martin Corporation has been the prime contractor for the F-22 program since its inception, encompassing development, production, and sustainment. Their track record includes extensive experience in integrating complex systems and managing software lifecycles for advanced military aircraft. Historically, they have been responsible for numerous modifications, upgrades, and sustainment efforts for the F-22 fleet. While specific performance metrics for past F-22 contracts are often not publicly detailed, their long-standing role suggests a deep understanding of the platform's intricacies and a proven capability to deliver on complex technical requirements within the defense sector. However, like many large defense contractors, they have faced scrutiny over cost and schedule on various programs, necessitating diligent oversight.

How does the $13.7 million cost compare to similar system integration efforts for advanced aircraft?

Directly comparing the $13.7 million cost for this F-22 system integration and Windows migration is challenging due to the unique nature of the F-22 platform and the specific end-of-life software upgrade required. Sole-source contracts for specialized integration on advanced military aircraft often command premium pricing due to the limited number of qualified contractors and the proprietary knowledge involved. Without access to detailed cost breakdowns or comparable sole-source awards for similar legacy system migrations on other fifth-generation fighters, a precise benchmark is difficult. However, the duration of the contract (over three years) and the critical nature of the F-22 suggest that this figure represents a significant, albeit potentially necessary, investment for maintaining operational capability.

What are the primary risks associated with migrating end-of-life Windows systems on a critical fighter jet?

Migrating end-of-life Windows systems on a critical asset like the F-22 presents several significant risks. Firstly, there's the risk of technical incompatibility; the new operating system or integrated software may not function seamlessly with existing hardware and avionics, potentially leading to performance degradation or system failures. Secondly, cybersecurity vulnerabilities are a major concern; older operating systems are often more susceptible to modern threats, and the migration process itself can introduce new security gaps if not meticulously managed. Thirdly, there's the risk of schedule delays and cost overruns, as unforeseen technical challenges are common in complex software migrations, especially on highly integrated platforms. Finally, the risk of impacting operational readiness exists if the migration process disrupts training or deployment schedules.

What is the expected impact of this contract on the F-22 program's overall effectiveness and longevity?

This contract is crucial for ensuring the continued effectiveness and longevity of the F-22 program. By migrating away from end-of-life Windows systems, the Air Force addresses critical security vulnerabilities and ensures the platform can continue to receive necessary software updates and support. This modernization is essential for maintaining the F-22's technological edge against evolving threats and ensures its operational readiness for years to come. Successful integration will likely improve system reliability, potentially reduce maintenance burdens associated with legacy software, and enable the incorporation of future upgrades, thereby extending the viable service life of this key strategic asset.

How has spending on F-22 sustainment and modernization evolved over the past five years?

Detailed historical spending data for specific F-22 sustainment and modernization efforts, particularly for individual system integration tasks like this Windows migration, is often aggregated within broader program support categories and not always publicly itemized. However, overall spending on the F-22 program has remained substantial, reflecting the high operational costs and ongoing need for modernization of this advanced fighter fleet. Trends generally indicate consistent, significant investment in sustainment, upgrades, and readiness initiatives to maintain the F-22's capabilities. Specific contract awards fluctuate year-to-year based on program priorities, such as addressing obsolescence, enhancing cyber capabilities, or improving sensor integration, but the underlying need for continuous support remains a constant driver of federal spending in this area.

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: FA820523R0511

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: $20,474,545

Exercised Options: $20,474,545

Current Obligation: $13,688,406

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