Air Force Awards $4.4M F-16 Maintenance Contract to Lockheed Martin
Contract Overview
Contract Amount: $4,421,269 ($4.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-05-01
End Date: 2026-02-01
Contract Duration: 1,372 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-16 CONTINGUOUS UNITED STATES BASED MAINTENANCE DEPOT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $4.4 million to LOCKHEED MARTIN CORPORATION for work described as: F-16 CONTINGUOUS UNITED STATES BASED MAINTENANCE DEPOT Key points: 1. Contract awarded to incumbent, Lockheed Martin, for F-16 maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over three years, indicating a significant commitment. 4. The total value is $4.4 million, which needs to be assessed against similar maintenance contracts.
Value Assessment
Rating: fair
The contract value of $4.4 million for F-16 maintenance over nearly four years appears reasonable. However, a direct per-unit cost comparison is difficult without specific service details. Benchmarking against historical F-16 maintenance contracts or similar aircraft support services would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. This method allows multiple bidders to compete, theoretically driving down costs and ensuring fair market pricing. The specific number of bids received and the winning bid's relation to the government estimate are crucial for assessing price effectiveness.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment for service providers.
Public Impact
Ensures continued operational readiness of F-16 fighter jets. Supports jobs within the aerospace maintenance sector. Potential for cost savings through competitive bidding. Impacts the strategic capabilities of the U.S. Air Force.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if scope expands.
- Dependence on a single contractor for critical maintenance.
Positive Signals
- Awarded under full and open competition.
- Contract aims to ensure aircraft readiness.
- Fixed-price contract type can limit cost uncertainty.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance. Spending benchmarks for depot-level maintenance of fighter aircraft can vary widely based on aircraft type, age, and required services. The $4.4 million value over 3.6 years suggests a moderate-sized contract for specialized support.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard oversight mechanisms, including performance monitoring and financial audits, should be in place to ensure contractor compliance and efficient use of funds.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole incumbent contractor.
- Long contract duration.
- Potential for scope creep.
- Lack of detailed performance metrics.
- Dependence on specific technical expertise.
Tags
other-support-activities-for-air-transpo, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.4 million to LOCKHEED MARTIN CORPORATION. F-16 CONTINGUOUS UNITED STATES BASED MAINTENANCE DEPOT
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 $4.4 million.
What is the period of performance?
Start: 2022-05-01. End: 2026-02-01.
What is the historical cost per flying hour for F-16 maintenance, and how does this contract's projected cost compare?
Historical cost per flying hour for F-16 maintenance can vary significantly based on factors like depot-level versus line-item maintenance, specific component replacements, and labor rates. Without detailed breakdowns of the services covered by this $4.4 million contract, a direct comparison is challenging. However, industry benchmarks often place F-16 maintenance costs in the thousands of dollars per flying hour, making this contract's value dependent on the total flying hours and specific tasks it encompasses.
What are the key performance indicators (KPIs) for this contract, and how will Lockheed Martin's performance be measured?
The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, aircraft maintenance contracts include metrics related to turnaround time for repairs, quality of work (e.g., defect rates), adherence to schedules, and availability of parts. The Air Force's contract management team would be responsible for monitoring these KPIs to ensure Lockheed Martin meets its obligations and delivers effective maintenance services.
What is the potential impact on F-16 readiness if Lockheed Martin experiences significant operational issues or delays?
Significant operational issues or delays by Lockheed Martin could directly impact F-16 readiness, potentially grounding aircraft and affecting training or combat deployment schedules. The Air Force would likely have contingency plans, possibly involving other maintenance providers or internal resources, to mitigate such disruptions. However, the long-term reliance on a single contractor for depot-level maintenance introduces a degree of risk that requires robust oversight and potential alternative sourcing strategies.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA823219R3006
Pricing Type: FIRM FIXED PRICE (J)
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: $4,421,269
Exercised Options: $4,421,269
Current Obligation: $4,421,269
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA823221D0005
IDV Type: IDC
Timeline
Start Date: 2022-05-01
Current End Date: 2026-02-01
Potential End Date: 2026-02-01 00:00:00
Last Modified: 2026-01-07
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