DoD Awards $5.45M for F-16 Maintenance Depot Services to Lockheed Martin

Contract Overview

Contract Amount: $5,451,001 ($5.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-12

End Date: 2026-03-05

Contract Duration: 1,270 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

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 $5.5 million to LOCKHEED MARTIN CORPORATION for work described as: F-16 CONTINGUOUS UNITED STATES BASED MAINTENANCE DEPOT Key points: 1. Contract awarded to incumbent provider, Lockheed Martin, for F-16 maintenance. 2. Significant contract value of $5.45 million over 1270 days. 3. Potential risk of limited competition due to specialized nature of F-16 maintenance. 4. Spending falls under Air Force's 'Other Support Activities for Air Transportation' sector.

Value Assessment

Rating: fair

The contract value of $5.45 million for F-16 maintenance appears reasonable given the specialized nature of aircraft support. Benchmarking against similar depot-level maintenance contracts for advanced fighter jets 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, suggesting a competitive bidding process. However, the specific nature of F-16 maintenance may limit the number of capable bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential military aircraft sustainment. The competitive award process aims to ensure reasonable pricing, but ongoing monitoring is crucial.

Public Impact

Ensures continued operational readiness of F-16 fighter jets. Supports critical defense infrastructure and national security. Maintains specialized technical expertise within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in time and materials contracts.
  • Reliance on a single contractor for specialized maintenance.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical national defense assets.

Sector Analysis

This contract falls under the 'Other Support Activities for Air Transportation' sector, which is a subset of the broader aerospace and defense industry. Spending in this area is crucial for maintaining military aviation readiness.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate.

Oversight & Accountability

The Department of the Air Force is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure performance and cost control.

Related Government Programs

  • Other Support Activities for Air Transportation
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Time and Materials contract type can lead to cost overruns.
  • Potential for limited competition in specialized maintenance.
  • Lack of specific performance metrics in provided data.
  • No indication of small business participation.

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 $5.5 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 $5.5 million.

What is the period of performance?

Start: 2022-09-12. End: 2026-03-05.

What is the projected hourly labor rate for technicians under this time and materials contract, and how does it compare to industry benchmarks?

The provided data does not specify the hourly labor rates for technicians. A time and materials contract allows for flexibility but requires diligent oversight to prevent inflated labor costs. Benchmarking these rates against similar specialized aviation maintenance contracts is essential for ensuring fair pricing and taxpayer value.

What are the specific performance metrics and key performance indicators (KPIs) used to evaluate Lockheed Martin's service delivery for F-16 maintenance?

The contract details do not explicitly list the performance metrics or KPIs. Effective oversight would necessitate clearly defined metrics such as turnaround time for repairs, quality of work, adherence to safety standards, and cost control. Regular performance reviews against these KPIs are crucial for accountability.

How will the Department of the Air Force ensure continued cost-effectiveness and prevent potential scope creep throughout the contract's duration?

The Air Force can ensure cost-effectiveness by implementing robust contract management, including regular audits of labor hours and material costs, and by closely monitoring the scope of work against the original requirements. Establishing clear change control procedures and requiring justification for any scope adjustments will help prevent scope creep.

Industry Classification

NAICS: Transportation and WarehousingSupport Activities for Air TransportationOther Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENTMAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA823219R3006

Pricing Type: TIME AND MATERIALS (Y)

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: $5,451,001

Exercised Options: $5,451,001

Current Obligation: $5,451,001

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: 2022-09-12

Current End Date: 2026-03-05

Potential End Date: 2026-03-05 00:00:00

Last Modified: 2025-12-23

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