DoD Awards $26.4M F-16 Engineering Services Contract to Lockheed Martin for FOSTR Program

Contract Overview

Contract Amount: $26,373,108 ($26.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-03-23

End Date: 2022-03-01

Contract Duration: 343 days

Daily Burn Rate: $76.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Defense

Official Description: F-16 ENGINEERING SERVCIES FOR THE ON-SITE FOSTR PROGRAM

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to LOCKHEED MARTIN CORPORATION for work described as: F-16 ENGINEERING SERVCIES FOR THE ON-SITE FOSTR PROGRAM Key points: 1. Contract awarded to incumbent provider, Lockheed Martin, for specialized F-16 engineering support. 2. The contract focuses on the FOSTR program, indicating a need for continued sustainment and modernization. 3. Lack of competition raises questions about potential overpricing and missed opportunities for cost savings. 4. Engineering services sector is critical for maintaining complex defense platforms like the F-16.

Value Assessment

Rating: fair

The contract value of $26.4M for engineering services appears within a reasonable range for specialized defense support. However, without a competitive bidding process, it's difficult to definitively assess if this represents the best value or if pricing is optimized compared to potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award likely due to the specialized nature of F-16 engineering services and the incumbent's unique capabilities. The absence of competition limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this significant contract could lead to higher expenditures than if multiple vendors had vied for the work, impacting overall taxpayer value.

Public Impact

Ensures continued operational readiness and modernization of the F-16 fleet. Supports critical engineering expertise for a key defense asset. Potential for higher costs due to sole-source award impacts defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Potential for cost overruns without competitive pressure.
Contract duration may not align with evolving program needs.

Positive Signals

Maintains critical engineering expertise for F-16 sustainment.
Supports a vital component of national defense infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Spending in this area is crucial for maintaining aging but vital military platforms. Benchmarks for similar specialized engineering services can vary widely based on complexity and required expertise.

Small Business Impact

The contract was awarded 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 awarded this contract. Oversight would typically involve monitoring contract performance, adherence to scope, and financial expenditures to ensure value and accountability. The sole-source nature warrants closer scrutiny to justify the lack of competition.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of competitive bidding.
Dependency on a single contractor for critical services.
Risk of scope creep without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to LOCKHEED MARTIN CORPORATION. F-16 ENGINEERING SERVCIES FOR THE ON-SITE FOSTR PROGRAM

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 $26.4 million.

What is the period of performance?

Start: 2021-03-23. End: 2022-03-01.

What specific engineering challenges or requirements of the FOSTR program necessitate a sole-source award to Lockheed Martin?

The FOSTR program likely involves highly specialized, proprietary knowledge and technical data related to the F-16's complex systems, which only Lockheed Martin, as the original manufacturer, possesses. This could include unique design insights, legacy system integration expertise, and access to classified or sensitive information, making it difficult or impossible for other firms to compete effectively without significant technology transfer or development.

How can the Air Force ensure cost-effectiveness and mitigate risks associated with this sole-source contract?

The Air Force can implement robust cost-control measures, including detailed cost analysis, performance-based payment structures, and regular audits. They should also actively seek opportunities for competition on future contract actions or modifications, and explore alternative solutions or technologies that could be procured competitively. Strong contract management and clear performance metrics are essential.

What is the long-term strategic value of this engineering support for the F-16 fleet?

Continued engineering support is vital for maintaining the F-16's operational readiness, addressing obsolescence issues, and potentially integrating upgrades to extend its service life. This ensures the Air Force retains a capable air-to-air and multi-role fighter platform, contributing significantly to national security objectives and power projection capabilities.

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: FIXED PRICE LEVEL OF EFFORT (B)

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: $26,373,108

Exercised Options: $26,373,108

Current Obligation: $26,373,108

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