F-16 ASIP Contract Awarded to Lockheed Martin for $18.9M, Lacking Competition

Contract Overview

Contract Amount: $18,908,782 ($18.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2017-03-01

End Date: 2018-02-28

Contract Duration: 364 days

Daily Burn Rate: $51.9K/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 $18.9 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 of $18.9 million for aircraft structural integrity. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for overpayment due to lack of competitive bidding. 4. Engineering services sector, critical for defense readiness.

Value Assessment

Rating: questionable

The contract value of $18.9 million for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar structural integrity programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Lockheed Martin. The lack of competition limits price discovery and may result in a higher cost to the government.

Taxpayer Impact: Taxpayers may be bearing a premium due to the absence of competitive pressure on pricing for these critical engineering services.

Public Impact

Ensures the structural integrity of F-16 aircraft, vital for national defense. Supports the operational readiness of a key Air Force asset. Potential for taxpayer savings if future contracts are competed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Supports critical defense asset
Addresses structural integrity needs

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Benchmarks for similar structural integrity programs are hard to establish without competitive data.

Small Business Impact

The data indicates that small businesses were not involved in this specific contract award, as it was a sole-source award to a large corporation.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. Further review of the justification for the sole-source award is recommended.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Potential for overpricing.
Lack of transparency in price negotiation.
No small business participation.
Contract duration is relatively short for a critical program.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 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 $18.9 million.

What is the period of performance?

Start: 2017-03-01. End: 2018-02-28.

What was the justification for awarding this contract on a sole-source basis to Lockheed Martin?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's presumed that Lockheed Martin's intimate knowledge of the F-16 platform was deemed essential for its structural integrity program, precluding competitive bidding.

What is the risk associated with a sole-source award for aircraft structural integrity?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Additionally, it can stifle innovation and limit the government's access to potentially more cost-effective solutions or advanced technologies from other qualified vendors.

How effective is this contract in ensuring F-16 readiness given the lack of competition?

While the contract is likely effective in addressing the immediate need for structural integrity services by a known entity, its long-term effectiveness in terms of value for money is questionable. The lack of competition means the government relies solely on Lockheed Martin's performance and pricing without external validation.

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: $23,297,315

Exercised Options: $18,908,782

Current Obligation: $18,908,782

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