DoD Awards $23M to Lockheed Martin for F-22 Antenna Test Stands, Extending Contract to 2027
Contract Overview
Contract Amount: $23,081,287 ($23.1M)
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: $21.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 ANTENNA INTERFACE UNIT AUTOMATED TEST STANDS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 ANTENNA INTERFACE UNIT AUTOMATED TEST STANDS Key points: 1. Significant investment in specialized F-22 sustainment equipment. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Long-term contract duration may limit future cost-saving opportunities. 4. Focus on critical aircraft component testing highlights defense readiness needs.
Value Assessment
Rating: fair
The contract value of $23,081,287 for automated test stands appears reasonable given the specialized nature of F-22 components. However, without detailed cost breakdowns or benchmarks for similar advanced test equipment, a precise value assessment is challenging.
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 approach likely stems from the unique requirements of F-22 specific testing equipment, but it bypasses potential price discovery through competitive bidding.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium compared to a fully competed contract, though the specialized nature of the equipment might justify the sole-source decision.
Public Impact
Ensures continued operational readiness for the F-22 Raptor fleet by providing essential testing capabilities. Supports advanced manufacturing and maintenance within the aerospace defense sector. Potential for extended reliance on a single vendor for critical support equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Long contract duration (3 years) may not reflect evolving technology or market prices.
- Cost-plus fixed fee contract type can incentivize cost overruns.
Positive Signals
- Addresses critical sustainment needs for a key strategic asset (F-22).
- Leverages incumbent contractor's established expertise with the F-22 platform.
- Ensures availability of specialized testing equipment essential for aircraft maintenance.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically supporting the sustainment of advanced fighter aircraft. Spending in this area is critical for maintaining national defense capabilities and often involves high-value, specialized equipment due to the complexity of military aviation.
Small Business Impact
The data indicates no specific set-aside for small businesses. As a sole-source award to a large prime contractor, opportunities for small business participation are likely limited to subcontracting roles, if any.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the sole-source nature and cost-plus contract type, robust oversight is crucial to ensure fair pricing and prevent unnecessary costs.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Potential for vendor lock-in
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 $23.1 million to LOCKHEED MARTIN CORPORATION. F-22 ANTENNA INTERFACE UNIT AUTOMATED TEST STANDS
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 $23.1 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 centers on unique capabilities, proprietary technology, or essential interoperability requirements that only one contractor can meet. For the F-22 Antenna Interface Unit Automated Test Stands, it's likely that Lockheed Martin's deep knowledge of the F-22 system and existing infrastructure made them the only viable option. However, a thorough review should confirm that competitive avenues, perhaps for specific components or future iterations, were indeed explored and deemed impractical.
How does the cost-plus fixed fee structure impact the government's ability to control costs for this specialized equipment?
A Cost-Plus Fixed Fee (CPFF) contract provides the contractor with reimbursement for allowable costs plus a predetermined fixed fee. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with higher costs), the government bears the risk of cost overruns. Robust government oversight and negotiation are essential to ensure costs remain reasonable and the fixed fee accurately reflects the effort involved.
What is the long-term strategy for acquiring and maintaining similar specialized test equipment for aging aircraft fleets?
The long-term strategy should involve proactive planning for sustainment and technology refresh cycles. This includes exploring opportunities for competitive prototyping, developing standardized test equipment where possible, and fostering innovation to reduce reliance on sole-source providers. For aging fleets like the F-22, ensuring cost-effective and timely access to necessary support equipment is paramount, potentially through strategic partnerships or advanced manufacturing techniques.
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: $23,081,287
Exercised Options: $23,081,287
Current Obligation: $23,081,287
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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