DoD's $25.2M Lockheed Martin Contract for F-16 Support Lacks Competition
Contract Overview
Contract Amount: $25,238,869 ($25.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-03-01
End Date: 2021-03-01
Contract Duration: 365 days
Daily Burn Rate: $69.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY20 ON-SITE FOSTR ENGINEERING AND CUSTOMER SUPPORT SERVICES
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $25.2 million to LOCKHEED MARTIN CORPORATION for work described as: FY20 ON-SITE FOSTR ENGINEERING AND CUSTOMER SUPPORT SERVICES Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing. 3. Engineering services sector sees substantial government investment. 4. Sole-source award limits taxpayer value and innovation.
Value Assessment
Rating: questionable
The contract's $25.2M value for one year of support is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar engineering and customer support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible value for these critical engineering services.
Public Impact
Supports critical F-16 aircraft operations and maintenance. Ensures continued readiness for Air Force missions. Impacts the aerospace and defense sector's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential engineering support
- Supports military readiness
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense readiness. Government spending in this area often involves complex, specialized requirements, making competitive sourcing challenging but vital for cost control.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, missing an opportunity for small business participation.
Oversight & Accountability
While the contract is for essential services, the sole-source nature warrants scrutiny to ensure fair pricing and performance. Future solicitations should explore competitive options to enhance oversight.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bids.
- No clear small business participation.
- Limited transparency on cost justification.
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 $25.2 million to LOCKHEED MARTIN CORPORATION. FY20 ON-SITE FOSTR ENGINEERING AND CUSTOMER SUPPORT SERVICES
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 $25.2 million.
What is the period of performance?
Start: 2020-03-01. End: 2021-03-01.
What is the justification for the sole-source award, and how does it ensure value for money?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of adequate competition. For this contract, the specific rationale needs to be documented by the Department of Defense. Ensuring value for money in such cases relies heavily on robust internal cost analysis and negotiation by the contracting agency to mitigate the absence of market-driven price discovery.
What are the risks associated with awarding a $25.2M contract without competition?
The primary risk is paying a non-competitive price, potentially exceeding fair market value. Other risks include reduced innovation from a lack of vendor alternatives, potential for vendor complacency due to a guaranteed contract, and missed opportunities to foster competition and develop new supplier relationships within the defense industrial base.
How effective is this contract in ensuring the continued operational readiness of the F-16 fleet?
Assuming Lockheed Martin possesses the necessary expertise and resources, the contract is likely effective in maintaining F-16 operational readiness. The firm fixed-price structure incentivizes performance. However, the effectiveness in terms of cost-efficiency is questionable due to the lack of competitive pressure to drive down expenses.
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: $25,238,869
Exercised Options: $25,238,869
Current Obligation: $25,238,869
Actual Outlays: $6,854,131
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: 2020-03-01
Current End Date: 2021-03-01
Potential End Date: 2021-03-01 00:00:00
Last Modified: 2025-04-26
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