DoD Awards $29.7M Contract to Lockheed Martin for Aircraft Manufacturing in Texas
Contract Overview
Contract Amount: $29,693,711 ($29.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $81.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SEE SECTION J, ATTACHMENT 1, PERFORMANCE WORK STATEMENT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $29.7 million to LOCKHEED MARTIN CORPORATION for work described as: SEE SECTION J, ATTACHMENT 1, PERFORMANCE WORK STATEMENT Key points: 1. Significant contract awarded to a major defense contractor. 2. Limited competition is a key factor in this award. 3. Potential for cost overruns exists with Cost Plus Fixed Fee contract type. 4. Aircraft Manufacturing sector sees substantial government investment.
Value Assessment
Rating: fair
The contract value of $29.7 million for a 12-month period appears reasonable given the nature of aircraft manufacturing. However, without specific details on the deliverables and the Cost Plus Fixed Fee structure, a precise pricing assessment against similar contracts is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The absence of competitive bidding could result in taxpayers paying more than necessary for the goods or services provided.
Public Impact
Impacts the aerospace and defense industry, particularly in Texas. Supports critical Air Force readiness and operational capabilities. Potential for job creation and economic activity in the region.
Waste & Efficiency Indicators
Waste Risk Score: 81 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for scope creep
Positive Signals
- Award to established prime contractor
- Clear performance period
- Specific location identified
Sector Analysis
The Aircraft Manufacturing sector (NAICS 336411) is a critical component of the defense industrial base. Spending in this sector is often characterized by high R&D costs, complex supply chains, and long production cycles, with significant government contracts being common.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to ensure performance standards are met and costs are managed effectively, especially given the Cost Plus Fixed Fee contract type.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost Plus Fixed Fee contract type may lead to higher costs
- Potential for undefined scope impacting budget
- Limited transparency on specific deliverables
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 $29.7 million to LOCKHEED MARTIN CORPORATION. SEE SECTION J, ATTACHMENT 1, PERFORMANCE WORK STATEMENT
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 $29.7 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What specific aircraft components or services are being procured under this contract, and how do they align with current Air Force modernization priorities?
The provided data does not specify the exact nature of the aircraft manufacturing services or components. Understanding these details is crucial to assess their alignment with Air Force modernization efforts and to determine if the $29.7 million investment is strategically sound for enhancing operational capabilities and future readiness.
What measures are in place to mitigate cost overruns and ensure fair pricing under the Cost Plus Fixed Fee (CPFF) contract structure?
Given the CPFF structure, robust oversight and stringent cost controls are essential. The Department of the Air Force should implement detailed auditing procedures, require transparent reporting of all incurred costs, and establish clear milestones with associated fee releases to incentivize efficiency and prevent unnecessary expenditures.
How will the performance of Lockheed Martin be evaluated to ensure the government receives the best value and meets its requirements?
Performance evaluation should be tied directly to the requirements outlined in the Performance Work Statement (PWS). Key metrics could include on-time delivery, quality of manufactured components, adherence to technical specifications, and cost control. Regular performance reviews and feedback mechanisms are vital for ensuring accountability and achieving desired outcomes.
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: $172,512,525
Exercised Options: $55,575,785
Current Obligation: $29,693,711
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: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2025-12-31
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