DoD's $20.6M F-16 ASIP Contract Awarded to Lockheed Martin Raises Competition Concerns
Contract Overview
Contract Amount: $20,588,375 ($20.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-03-01
End Date: 2017-07-28
Contract Duration: 514 days
Daily Burn Rate: $40.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF F-16 AIRCRAFT STRUCTURAL INTEGRITY PROGRAM(ASIP)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $20.6 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF F-16 AIRCRAFT STRUCTURAL INTEGRITY PROGRAM(ASIP) Key points: 1. Significant contract value for aircraft structural integrity program. 2. Sole awardee, Lockheed Martin, dominates F-16 related services. 3. Lack of competition poses a potential risk to cost-effectiveness. 4. Engineering services sector sees substantial government spending.
Value Assessment
Rating: questionable
The contract value of $20.6 million for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar structural integrity programs.
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.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical aircraft maintenance services.
Public Impact
Ensures the structural integrity of F-16 aircraft, crucial for operational readiness. Supports the U.S. Air Force's fleet maintenance and safety protocols. Potential for increased costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
Positive Signals
- Critical safety and maintenance program
- Supports vital military aircraft
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for maintaining complex military assets like aircraft. Spending in this area is often substantial due to the specialized nature of the work.
Small Business Impact
The data indicates no specific allocation or consideration for small businesses in this contract award. The prime contractor is a large corporation, suggesting limited opportunities for small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure fair pricing and value for taxpayer dollars. Accountability for the justification of a sole-source award is essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for inflated costs due to lack of market validation.
- Limited transparency in price determination.
- Dependency on a single contractor for critical services.
Tags
engineering-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF F-16 AIRCRAFT STRUCTURAL INTEGRITY PROGRAM(ASIP)
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 $20.6 million.
What is the period of performance?
Start: 2016-03-01. End: 2017-07-28.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Agencies must conduct market research and price analyses to ensure the awarded price is fair and reasonable, even without competition. Documentation of these efforts is crucial for oversight.
How does the cost of this contract compare to similar structural integrity programs for other aircraft types or previous contracts for the F-16?
Benchmarking against similar programs is challenging without competitive data. However, a review of historical F-16 ASIP contracts or comparable structural integrity programs for other aircraft (e.g., F-15, F-22) could reveal cost trends. Significant deviations without clear justification would be a red flag.
What is the long-term strategy for ensuring competitive sourcing of F-16 structural integrity and related engineering services?
The long-term strategy should involve exploring opportunities for future competition, potentially by breaking down the requirement into smaller, more accessible contracts or encouraging new entrants into the market. Developing a robust acquisition plan that prioritizes competition, where feasible, is key to achieving better value and innovation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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, FORT WORTH, TX, 76108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,642,827
Exercised Options: $20,611,603
Current Obligation: $20,588,375
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F4262001D0058
IDV Type: IDC
Timeline
Start Date: 2016-03-01
Current End Date: 2017-07-28
Potential End Date: 2017-07-28 00:00:00
Last Modified: 2025-12-03
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)