DoD Awards $53.2M F-16 Upgrade to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $53,192,056 ($53.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-17
End Date: 2032-05-17
Contract Duration: 2,618 days
Daily Burn Rate: $20.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ARGENTINA F-16 M6 OFP UPDATE
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $53.2 million to LOCKHEED MARTIN CORPORATION for work described as: ARGENTINA F-16 M6 OFP UPDATE Key points: 1. Significant contract value for aircraft modernization. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long contract duration (2025-2032) impacts long-term value. 4. Focus on IT services (NAICS 541519) within defense procurement.
Value Assessment
Rating: questionable
The contract value of $53.2 million for F-16 upgrades is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft modernization efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this significant defense contract may result in taxpayers paying a premium for F-16 modernization services.
Public Impact
Modernization of critical F-16 fighter jets ensures continued operational readiness. Potential for technology advancements in avionics and systems. Impacts the U.S. Air Force's ability to maintain its F-16 fleet. Long-term sustainment of a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing
- Long contract duration
Positive Signals
- Modernization of critical defense asset
- Potential for technological upgrades
Sector Analysis
This contract falls within the defense sector, specifically focusing on IT and computer-related services for aircraft modernization. Defense IT spending is a significant portion of the federal budget, often characterized by complex, high-value contracts.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this sole-source contract. It is likely that Lockheed Martin will be the primary contractor, with potential for subcontracting.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving the best possible value and that the contractor is meeting all performance requirements.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Long-term dependency on a single vendor
- Risk of technological obsolescence if upgrades are not comprehensive
Tags
other-computer-related-services, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.2 million to LOCKHEED MARTIN CORPORATION. ARGENTINA F-16 M6 OFP UPDATE
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 $53.2 million.
What is the period of performance?
Start: 2025-03-17. End: 2032-05-17.
What specific technical upgrades are included in this "OFP Update" for the F-16, and how do they enhance the aircraft's capabilities?
The "OFP Update" likely refers to an Operational Flight Program update, which involves enhancing the software and potentially hardware systems of the F-16 fighter jet. These upgrades could include improved avionics, radar capabilities, electronic warfare systems, or communication suites, aiming to maintain the aircraft's combat effectiveness against evolving threats and extend its service life.
Given the sole-source award, what mechanisms are in place to ensure Lockheed Martin's pricing is fair and reasonable for these F-16 upgrades?
For sole-source contracts, the government typically relies on contractor cost and pricing data, along with independent government cost estimates, to negotiate a fair and reasonable price. This often involves detailed audits and negotiations, especially for significant contract values like $53.2 million, to mitigate the risks associated with a lack of competition.
What is the projected impact of these F-16 upgrades on the overall readiness and operational effectiveness of the Air Force's fighter fleet?
These upgrades are crucial for maintaining the F-16's relevance and effectiveness in modern air combat environments. By incorporating updated systems, the Air Force aims to enhance the aircraft's survivability, lethality, and interoperability, ensuring the fighter fleet remains a capable asset for national defense missions throughout its extended service life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA823225RB008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD, 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: $265,960,280
Exercised Options: $265,960,280
Current Obligation: $53,192,056
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-03-17
Current End Date: 2032-05-17
Potential End Date: 2032-05-17 00:00:00
Last Modified: 2026-01-15
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)