DoD Awards $29.3M for F-22 Digital/Analog Power Supply Test Systems to Lockheed Martin
Contract Overview
Contract Amount: $29,340,412 ($29.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2027-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $26.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 DIGITAL/ANALOG POWER SUPPLY (DAPS) AUTOMATED TEST SYSTEMS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $29.3 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 DIGITAL/ANALOG POWER SUPPLY (DAPS) AUTOMATED TEST SYSTEMS Key points: 1. Significant investment in critical aircraft component testing infrastructure. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Long-term contract duration (3 years) suggests ongoing need. 4. High-value contract for specialized aerospace testing equipment.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without more detailed cost breakdowns and comparison to similar specialized test equipment.
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 the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this specialized test equipment.
Public Impact
Ensures continued operational readiness of the F-22 fleet by maintaining testing capabilities. Supports advanced manufacturing and maintenance processes for a key defense asset. Potential for cost inefficiencies due to sole-source nature impacts taxpayer value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Supports critical defense asset (F-22)
- Incumbent contractor expertise
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically supporting specialized testing equipment for a major defense platform. Spending benchmarks for such niche, sole-source procurements are difficult to establish but are typically high due to R&D and specialized nature.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific sole-source procurement, nor is it typical for such specialized, high-value components.
Oversight & Accountability
The Department of the Air Force is the procuring agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers the required test systems within reasonable cost parameters.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Lack of transparency in pricing due to sole-source nature.
- Long contract duration may not reflect evolving technological needs.
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 $29.3 million to LOCKHEED MARTIN CORPORATION. F-22 DIGITAL/ANALOG POWER SUPPLY (DAPS) AUTOMATED TEST SYSTEMS
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 $29.3 million.
What is the period of performance?
Start: 2024-09-30. End: 2027-09-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to assess if alternative competitive strategies were thoroughly explored or deemed infeasible by the Department of the Air Force.
How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract for this specialized equipment?
Effective cost control will rely on robust government oversight, detailed monitoring of contractor costs, and clear definition of the fixed fee. The government should establish realistic cost targets and performance metrics, actively manage scope changes, and conduct thorough audits to ensure the contractor's expenses are reasonable and allocable to the contract.
What is the long-term strategy for acquiring or maintaining these test systems to ensure future competition and cost efficiency?
The long-term strategy should involve market research to identify potential future sources or technologies. The government could consider breaking down future requirements into smaller, more competitive packages, encouraging technology insertion, or developing in-house capabilities if feasible. Planning for eventual competition or alternative sourcing is key to avoiding perpetual sole-source reliance.
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: $29,340,412
Exercised Options: $29,340,412
Current Obligation: $29,340,412
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: 2024-09-30
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-09-30
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