F-22 RAM Program contract awarded to Lockheed Martin for $60.5M, extending through December 2027

Contract Overview

Contract Amount: $60,570,593 ($60.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-12-30

End Date: 2027-12-31

Contract Duration: 1,096 days

Daily Burn Rate: $55.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-22 RELIABILITY, AVAILABILITY, MAINTAINABILITY PROGRAM

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $60.6 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 RELIABILITY, AVAILABILITY, MAINTAINABILITY PROGRAM Key points: 1. Contract focuses on sustainment and readiness for the F-22 fleet. 2. Sole-source award to Lockheed Martin, the original equipment manufacturer. 3. Long-term contract indicates a need for specialized support. 4. Performance period spans over three years, suggesting ongoing requirements. 5. The contract value is a portion of broader F-22 sustainment efforts.

Value Assessment

Rating: fair

This contract's value of $60.5 million for sustainment services appears reasonable given the complexity of maintaining advanced fighter aircraft like the F-22. Without direct comparable contracts for similar services on the F-22, it's difficult to benchmark precisely. However, the firm-fixed-price structure suggests that cost risks are largely borne by the contractor, which can be a positive indicator for value. The duration of the contract also implies a stable, predictable cost over its term.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Lockheed Martin Corporation. As the original equipment manufacturer and primary contractor for the F-22 program, Lockheed Martin possesses unique knowledge, tooling, and proprietary data essential for the aircraft's sustainment. This approach is common for specialized, high-technology systems where competition is not feasible or cost-effective due to contractor-specific expertise.

Taxpayer Impact: Sole-source awards can limit opportunities for competitive pricing, potentially leading to higher costs for taxpayers compared to a competed contract. However, for highly specialized systems, it may prevent higher costs associated with technology transfer or contractor learning curves.

Public Impact

The primary beneficiaries are the U.S. Air Force and its F-22 Raptor fleet, ensuring operational readiness. Services delivered include maintenance, repair, and logistics support for the F-22 aircraft. The geographic impact is primarily at F-22 operating bases, ensuring mission capability. Workforce implications include sustaining highly skilled technical jobs within Lockheed Martin and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source nature limits competitive pricing pressure.
Long-term sustainment contracts can become entrenched, making future competition difficult.
Reliance on a single contractor for critical aircraft support poses a risk if performance issues arise.

Positive Signals

Award to the original equipment manufacturer ensures specialized knowledge and expertise.
Firm-fixed-price contract shifts cost risk to the contractor.
Long-term nature provides stability for sustainment planning and execution.

Sector Analysis

The aerospace and defense sector is characterized by high R&D costs, long product lifecycles, and significant government procurement. Sustainment contracts like this are crucial for maintaining the operational readiness of complex military platforms. The F-22 program represents a significant investment in advanced air superiority, and its ongoing maintenance is a critical component of national defense spending within this sector. Comparable spending benchmarks are difficult to establish due to the unique nature of each platform.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting plans for small businesses. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely limited unless Lockheed Martin actively engages them for specific support services. Further analysis of Lockheed Martin's subcontracting reports would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring Lockheed Martin to deliver specified services within agreed-upon costs. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance metrics may be sensitive.

Related Government Programs

F-22 Raptor Sustainment
Aircraft Maintenance and Repair
Aerospace Defense Contracts
Lockheed Martin Defense Services

Risk Flags

Sole-source award
Long-term sustainment contract
High-technology defense system

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.6 million to LOCKHEED MARTIN CORPORATION. F-22 RELIABILITY, AVAILABILITY, MAINTAINABILITY PROGRAM

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 $60.6 million.

What is the period of performance?

Start: 2024-12-30. End: 2027-12-31.

What is Lockheed Martin's track record with F-22 sustainment and readiness programs?

Lockheed Martin Corporation, as the prime contractor for the F-22 program, has an extensive and established track record in supporting the aircraft's sustainment and readiness. They were responsible for the initial design, development, and production of the F-22. Their ongoing involvement in sustainment programs, including the F-22 Reliability, Availability, Maintainability (RAM) program, indicates a deep understanding of the aircraft's complex systems and operational requirements. Historically, their performance has been critical to maintaining the F-22 fleet's operational status, though like any large-scale defense program, there can be challenges related to cost, schedule, and technical performance that are subject to ongoing management and oversight by the Department of Defense.

How does the $60.5 million contract value compare to previous F-22 RAM program awards?

Comparing the current $60.5 million contract value directly to previous F-22 RAM program awards requires access to historical contract data, which is not fully provided in the abbreviated data. However, sustainment programs for advanced fighter aircraft typically involve significant, multi-year funding. The F-22 RAM program, by its nature, addresses the ongoing costs associated with keeping a fleet of highly complex aircraft operational. It is reasonable to assume that this $60.5 million represents a specific delivery order or a segment of a larger, overarching sustainment effort. Without specific historical award amounts for comparable periods or scopes of work, a precise comparison is challenging, but the value appears consistent with the long-term maintenance needs of such a platform.

What are the primary risks associated with this sole-source contract for the F-22 RAM program?

The primary risks associated with this sole-source contract for the F-22 RAM program stem from the lack of competitive bidding. This can lead to reduced price competition, potentially resulting in higher costs for the government compared to a scenario with multiple bidders vying for the contract. There's also a risk of contractor complacency or reduced incentive to innovate and improve efficiency when competition is absent. Furthermore, the government's reliance on a single entity, Lockheed Martin, for critical sustainment services creates a dependency. Any performance issues, financial instability, or strategic shifts by the contractor could significantly impact the F-22 fleet's readiness and the program's overall success.

How effective is the F-22 RAM program in ensuring the F-22's operational readiness?

The F-22 Reliability, Availability, Maintainability (RAM) program is designed to be the cornerstone of ensuring the F-22's operational readiness. Its effectiveness is measured by metrics such as aircraft availability rates, mean time between failures, and the efficiency of maintenance processes. While the F-22 is a highly advanced and complex aircraft, requiring significant resources for sustainment, the RAM program aims to optimize these efforts. The continued operation and deployment of the F-22 fleet for critical missions suggest a degree of effectiveness. However, the inherent challenges of maintaining fifth-generation stealth fighters mean that achieving and sustaining high levels of readiness is a continuous effort, often involving trade-offs between cost, performance, and availability.

What are the historical spending patterns for F-22 sustainment and how does this contract fit in?

Historical spending patterns for F-22 sustainment have been substantial, reflecting the aircraft's advanced technology and the significant costs associated with maintaining its stealth capabilities, complex avionics, and airframe integrity. The F-22 program, from its inception, has required considerable investment not only in procurement but also in ongoing logistics, maintenance, and upgrades. This $60.5 million contract for the RAM program represents a specific allocation within the broader F-22 sustainment budget. It likely covers a defined period or set of services, such as depot-level maintenance, component repair, or technical support. Over the life cycle of the F-22, total sustainment costs have amounted to billions of dollars, and contracts like this are recurring elements within that overall spending trajectory.

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

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: $174,727,420

Exercised Options: $60,570,593

Current Obligation: $60,570,593

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