DoD Awards $135M Lockheed Martin Contract for Iraqi EW Integration Services
Contract Overview
Contract Amount: $13,511,816 ($13.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2029-03-31
Contract Duration: 1,642 days
Daily Burn Rate: $8.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FOREIGN MILITARY SALE TO IRAQ OF INTEGRATION SERVICES FOR THE ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to LOCKHEED MARTIN CORPORATION for work described as: FOREIGN MILITARY SALE TO IRAQ OF INTEGRATION SERVICES FOR THE ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE Key points: 1. Contract awarded to a single, large defense contractor, indicating potential lack of competition. 2. Focus on integration services for electronic warfare suggests a critical national security component. 3. Long performance period (over 5 years) implies significant ongoing support and potential for cost escalation. 4. The contract's value is substantial, requiring careful oversight to ensure taxpayer value.
Value Assessment
Rating: fair
The contract value of $135.1M for integration services is significant. Benchmarking against similar EW integration contracts is difficult without more specific service details, but the price appears within a reasonable range for complex defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment. The justification for sole-sourcing is critical for assessing value.
Taxpayer Impact: The lack of competition raises concerns about potential overspending, impacting taxpayer value. Robust oversight is needed to ensure the price reflects fair market value for the services provided.
Public Impact
Enhances the electronic warfare capabilities of an allied nation, contributing to regional stability. Supports U.S. foreign policy objectives by providing advanced defense technology to partners. Potential for technology transfer and interoperability with U.S. forces. Job creation within Lockheed Martin and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long performance period
Positive Signals
- Supports allied defense capabilities
- Strategic foreign military sale
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on electronic warfare systems. Spending in this area is driven by evolving threats and the need for advanced technological solutions. Benchmarks for EW integration services are highly specialized and often proprietary.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited direct impact on small businesses.
Oversight & Accountability
Given the sole-source nature and significant value, rigorous oversight by the Department of Defense is essential. This includes monitoring performance, verifying costs, and ensuring adherence to contract terms to protect taxpayer interests.
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 and price discovery.
- Potential for cost overruns due to long performance period.
- Dependence on a single contractor for critical defense capabilities.
- Geopolitical risks associated with military sales.
- Ensuring effective technology transfer and training for Iraqi forces.
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 $13.5 million to LOCKHEED MARTIN CORPORATION. FOREIGN MILITARY SALE TO IRAQ OF INTEGRATION SERVICES FOR THE ADVANCED INTEGRATED DEFENSIVE ELECTRONIC WARFARE SUITE
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 $13.5 million.
What is the period of performance?
Start: 2024-10-01. End: 2029-03-31.
What is the specific justification for awarding this contract on a sole-source basis, and how does it ensure fair and reasonable pricing?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Agencies must document this justification thoroughly. For this contract, understanding the specific reasons is crucial to assess if the pricing is indeed fair and reasonable, as competition is absent, removing a key mechanism for price discovery and validation.
What are the key performance indicators (KPIs) for these integration services, and how will their achievement be measured to ensure effectiveness?
Measuring the effectiveness of EW integration services requires clearly defined KPIs related to system performance, reliability, and interoperability. These could include metrics like signal detection range, jamming effectiveness, system uptime, and successful integration with existing Iraqi platforms. The contract should outline specific, measurable, achievable, relevant, and time-bound (SMART) goals and the methods for tracking progress against them.
What is the long-term strategy for maintaining and upgrading these EW systems, and how will future costs be managed?
The long-term strategy for maintaining and upgrading these systems is critical given the 5-year performance period and the rapid evolution of electronic warfare technology. This includes planning for sustainment, potential upgrades, and eventual obsolescence. Understanding how future costs will be managed, whether through follow-on contracts, sustainment agreements, or organic capabilities development, is essential for assessing the total lifecycle cost and taxpayer impact.
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: FA823222R3010
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: $13,511,816
Exercised Options: $13,511,816
Current Obligation: $13,511,816
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: 2024-10-01
Current End Date: 2029-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2025-12-16
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