DoD Awards $23.8M for F-22 Test Equipment Amid Diminishing Sources
Contract Overview
Contract Amount: $23,817,736 ($23.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-22
End Date: 2028-09-21
Contract Duration: 1,095 days
Daily Burn Rate: $21.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 SPECIAL TEST EQUIPMENT (STE) DIMINISHING MANUFACTURING SOURCES (DMS) COMMON AUTOMATED TEST STANDS 2 AND 7
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $23.8 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 SPECIAL TEST EQUIPMENT (STE) DIMINISHING MANUFACTURING SOURCES (DMS) COMMON AUTOMATED TEST STANDS 2 AND 7 Key points: 1. High value contract for specialized F-22 sustainment. 2. Sole source award to incumbent Lockheed Martin raises competition concerns. 3. Potential risk of cost overruns due to Cost Plus Fixed Fee structure. 4. Aircraft manufacturing sector relies on such specialized support.
Value Assessment
Rating: questionable
The contract value of $23.8M for specialized test equipment appears high. Benchmarking is difficult due to the unique nature of F-22 STE, but the sole-source award and CPFF structure warrant scrutiny for potential price inflation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source to Lockheed Martin, likely due to proprietary knowledge and the specialized nature of F-22 test equipment. The lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The sole-source nature and CPFF contract type may lead to higher taxpayer costs than a competitive procurement. The government is reliant on the contractor for accurate cost reporting.
Public Impact
Ensures continued operational readiness of the F-22 fleet. Addresses critical supply chain issues for aging aircraft components. Supports high-skilled jobs in aerospace manufacturing and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Diminishing Manufacturing Sources (DMS) risk
- Long contract duration
Positive Signals
- Addresses critical sustainment need
- Supports advanced fighter aircraft readiness
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting the sustainment of advanced fighter aircraft. Spending in this area is critical for national security but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, which is common for highly specialized defense systems.
Oversight & Accountability
The Department of the Air Force is the procuring agency. Oversight will be crucial to manage costs under the CPFF structure and ensure the contractor effectively addresses the DMS issues for the F-22 STE.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price negotiation.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Diminishing Manufacturing Sources (DMS) present inherent supply chain risks.
- Long contract duration increases exposure to cost fluctuations.
- Reliance on a single contractor for critical, specialized equipment.
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 $23.8 million to LOCKHEED MARTIN CORPORATION. F-22 SPECIAL TEST EQUIPMENT (STE) DIMINISHING MANUFACTURING SOURCES (DMS) COMMON AUTOMATED TEST STANDS 2 AND 7
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 $23.8 million.
What is the period of performance?
Start: 2025-09-22. End: 2028-09-21.
What is the government's strategy to mitigate cost growth under the Cost Plus Fixed Fee contract for this sole-source award?
The government's strategy likely involves robust cost monitoring, detailed audits of contractor expenditures, and clear performance metrics tied to deliverables. Regular reviews and negotiations on fee structures based on performance and cost efficiency are essential to control potential cost overruns inherent in CPFF contracts, especially for sole-source procurements.
How is the risk of diminishing manufacturing sources being actively managed beyond this contract award?
Beyond this contract, the Air Force likely employs a multi-faceted approach including proactive supply chain risk management, industry engagement to identify alternative sources or redesigns, and potentially investing in reverse engineering or technology insertion to overcome DMS challenges for critical F-22 components.
What is the long-term plan for F-22 Special Test Equipment sustainment beyond the current contract's end date?
The long-term plan likely involves continuous assessment of the F-22 fleet's remaining service life and associated sustainment needs. This could include further sole-source awards for critical components, competitive procurements for less specialized equipment, or potential upgrades and modernization efforts for the test stands themselves.
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: 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: $47,645,000
Exercised Options: $47,645,000
Current Obligation: $23,817,736
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: 2025-09-22
Current End Date: 2028-09-21
Potential End Date: 2028-09-21 00:00:00
Last Modified: 2025-09-10
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