DoD Awards $24.8M F-16 Integration Contract to Lockheed Martin, Sole-Source
Contract Overview
Contract Amount: $24,797,994 ($24.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-07
End Date: 2029-12-31
Contract Duration: 2,216 days
Daily Burn Rate: $11.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: POLAND F-16 MIDS-JTRS INTEGRATION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to LOCKHEED MARTIN CORPORATION for work described as: POLAND F-16 MIDS-JTRS INTEGRATION Key points: 1. Contract awarded to incumbent prime contractor, Lockheed Martin. 2. Focuses on integrating MIDS-JTRS technology into Polish F-16 aircraft. 3. Sole-source award raises questions about price discovery and competition. 4. Long performance period (2023-2029) suggests significant integration effort.
Value Assessment
Rating: questionable
The contract value of $24.8M for integration services is difficult to assess without comparable benchmarks. As a sole-source award to the prime contractor, there's a risk of inflated pricing due to limited competitive pressure.
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 approach limits price discovery and may not yield the best value for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this sole-source award means taxpayers may not be receiving the most cost-effective solution for the F-16 integration.
Public Impact
Enhances interoperability and capabilities of Polish F-16 fleet. Supports U.S. foreign military sales and defense cooperation with Poland. Potential for follow-on sustainment and upgrade contracts. Impacts the readiness and effectiveness of a key NATO ally's air power.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration.
- Lack of clear justification for sole-source.
- Potential for cost overruns without competition.
Positive Signals
- Supports critical foreign military sales.
- Leverages existing prime contractor expertise.
- Enhances allied defense capabilities.
Sector Analysis
This contract falls under the aerospace and defense sector, specifically focusing on electronic systems integration for military aircraft. Spending in this area is often driven by modernization efforts and foreign military sales, with prime contractors like Lockheed Martin typically dominating.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Department of the Air Force is responsible for managing this contract and ensuring accountability.
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 lacks competitive pricing.
- Long performance period may increase risk of cost escalation.
- Limited transparency on justification for sole-source.
- Potential for vendor lock-in with prime contractor.
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 $24.8 million to LOCKHEED MARTIN CORPORATION. POLAND F-16 MIDS-JTRS INTEGRATION
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 $24.8 million.
What is the period of performance?
Start: 2023-12-07. End: 2029-12-31.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The provided data does not include the specific justification for the sole-source award. Typically, justifications might include proprietary technology, urgent need, or lack of qualified sources. Without this information, it's difficult to assess the validity of the sole-source decision and the effectiveness of price negotiation.
How does the per-unit cost of this integration compare to similar MIDS-JTRS integration efforts on other F-16 platforms or similar aircraft?
A direct per-unit cost comparison is not possible with the given data. Benchmarking would require access to pricing details of comparable contracts, including the scope of work, specific hardware/software involved, and the competitive environment under which those contracts were awarded.
What is the expected impact of this integration on the operational effectiveness and interoperability of the Polish F-16 fleet?
The integration of MIDS-JTRS is expected to significantly enhance the operational effectiveness and interoperability of the Polish F-16 fleet. MIDS-JTRS provides advanced situational awareness, secure communication, and data-linking capabilities, crucial for modern air operations and coalition warfare.
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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA823222R3018
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: $32,253,699
Exercised Options: $32,253,699
Current Obligation: $24,797,994
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: 2023-12-07
Current End Date: 2029-12-31
Potential End Date: 2030-12-31 00:00:00
Last Modified: 2025-10-02
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