DoD awards $31.9M for F-16 Engineering Services to Lockheed Martin, raising competition concerns
Contract Overview
Contract Amount: $31,929,771 ($31.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-02-28
End Date: 2024-02-29
Contract Duration: 366 days
Daily Burn Rate: $87.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Defense
Official Description: 2023 F-16 ON-SITE ENGINEERING SERVICES
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $31.9 million to LOCKHEED MARTIN CORPORATION for work described as: 2023 F-16 ON-SITE ENGINEERING SERVICES Key points: 1. Significant contract value for specialized F-16 engineering support. 2. Sole-source award to incumbent contractor, Lockheed Martin, limits competitive pricing. 3. Potential risk of inflated costs due to lack of competition. 4. Focus on maintenance and repair within the Defense sector.
Value Assessment
Rating: questionable
The contract's fixed-price level-of-effort structure with a sole-source award suggests limited price discovery. Benchmarking against similar sole-source engineering support contracts is difficult without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition may prevent the government from securing the best possible price and value.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially leading to less efficient use of funds.
Public Impact
Ensures continued operational readiness of the F-16 fleet. Supports critical maintenance and engineering expertise for advanced aircraft. Potential for higher costs impacting overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 87 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Essential service for F-16 fleet
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically supporting the maintenance and engineering of F-16 fighter jets. Spending benchmarks for specialized aircraft engineering services can vary widely based on aircraft type and required expertise.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and at a reasonable cost, despite the lack of competition.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost inefficiencies without competition.
- Lack of transparency in price justification.
- Dependency on a single contractor for critical support.
Tags
other-electronic-and-precision-equipment, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.9 million to LOCKHEED MARTIN CORPORATION. 2023 F-16 ON-SITE ENGINEERING 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 $31.9 million.
What is the period of performance?
Start: 2023-02-28. End: 2024-02-29.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Without further documentation, it's unclear if alternative competitive strategies were explored or deemed infeasible. This lack of competition is a key area for oversight to ensure taxpayer value.
How does the pricing of this contract compare to historical sole-source contracts for similar F-16 support services?
Comparing pricing requires access to historical contract data for similar sole-source F-16 engineering services. Without this benchmark, it's difficult to definitively assess if the $31.9 million award is reasonable. A thorough review of past performance and cost breakdowns would be necessary to identify any significant deviations or potential overpricing.
What mechanisms are in place to ensure the effectiveness and efficiency of the engineering services provided by Lockheed Martin?
Effectiveness and efficiency are typically ensured through performance metrics, delivery schedules, and quality control standards outlined in the contract. Regular government oversight, progress reports, and potential audits can help monitor performance. However, the sole-source nature might reduce the contractor's incentive to optimize for cost efficiency compared to a competitive environment.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
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 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: $31,929,771
Exercised Options: $31,929,771
Current Obligation: $31,929,771
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA823222D0004
IDV Type: IDC
Timeline
Start Date: 2023-02-28
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 00:00:00
Last Modified: 2025-08-27
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