DoD Awards $3.8M F-16 Engineering Support to Lockheed Martin Under Falcon Enterprise BOC
Contract Overview
Contract Amount: $3,865,295 ($3.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-01-01
End Date: 2026-07-31
Contract Duration: 942 days
Daily Burn Rate: $4.1K/day
Competition Type: NOT COMPETED
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: F-16 ENGINEERING PROJECT REQUESTS (EPR) UNDER FALCON ENTERPRISE BASIC ORDERING CONTRACT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $3.9 million to LOCKHEED MARTIN CORPORATION for work described as: F-16 ENGINEERING PROJECT REQUESTS (EPR) UNDER FALCON ENTERPRISE BASIC ORDERING CONTRACT Key points: 1. Contract awarded to incumbent prime contractor, Lockheed Martin. 2. Focuses on engineering project requests for F-16 aircraft. 3. Potential for cost overruns due to Time and Materials pricing. 4. IT and Defense sectors are key areas for this type of support.
Value Assessment
Rating: fair
The contract uses Time and Materials pricing, which can lead to higher costs if not closely managed. Benchmarking against similar F-16 sustainment contracts is difficult without detailed labor rates and material markups.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely leveraging the existing Falcon Enterprise Basic Ordering Contract. Lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The government may be paying a premium due to the absence of competitive bidding, impacting taxpayer funds.
Public Impact
Ensures continued operational readiness of the F-16 fleet. Supports critical engineering and sustainment activities for a key defense asset. Potential for increased costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Time and Materials pricing
- Potential for cost creep
Positive Signals
- Supports critical defense platform
- Leverages existing contract vehicle
Sector Analysis
This contract falls under defense sustainment and engineering services, a critical but often high-cost sector. Benchmarks for similar sole-source sustainment contracts vary widely based on platform and scope.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight will be crucial to manage the Time and Materials aspect of this contract, ensuring efficient use of funds and preventing cost overruns. The Air Force Contracting Office is responsible.
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 competition.
- Time and Materials pricing poses cost control risks.
- Potential for cost overruns without a fixed ceiling.
- Lack of transparency in specific engineering tasks.
Tags
other-electronic-and-precision-equipment, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.9 million to LOCKHEED MARTIN CORPORATION. F-16 ENGINEERING PROJECT REQUESTS (EPR) UNDER FALCON ENTERPRISE BASIC ORDERING CONTRACT
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 $3.9 million.
What is the period of performance?
Start: 2024-01-01. End: 2026-07-31.
What is the projected total cost if the contract reaches its maximum duration and all options are exercised?
The provided data shows an award amount of $3,865,294.52 with a duration of 942 days. However, the contract type is Time and Materials with no ceiling specified in the provided data. Therefore, the final cost could exceed the initial award amount significantly if labor hours and material costs are high.
What specific engineering services are included under this contract, and how do they mitigate risks to F-16 operational readiness?
The contract covers 'F-16 ENGINEERING PROJECT REQUESTS (EPR)'. While the specific EPRs are not detailed, these likely involve technical problem-solving, design modifications, and support for system upgrades. This ensures the F-16 fleet remains combat-effective and addresses obsolescence or performance issues.
How does the Air Force ensure fair and reasonable pricing for Time and Materials contracts awarded without full and open competition?
The Air Force typically relies on certified cost or pricing data, historical pricing, and market research to establish fair and reasonable pricing for T&M contracts. For sole-source awards, negotiation and justification of labor rates and material markups are critical oversight mechanisms.
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: 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: $4,500,000
Exercised Options: $3,865,295
Current Obligation: $3,865,295
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: 2024-01-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-01-12
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