DoD awards Lockheed Martin $21.7M for Air Force, Navy weapon system sustainment
Contract Overview
Contract Amount: $21,691,996 ($21.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-12-09
Contract Duration: 617 days
Daily Burn Rate: $35.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TO PROVIDE POST-PRODUCTION ASIP SUPPORT REQUIRED TO MEET CUSTOMER NEEDS FOR WEAPON SYSTEM SUSTAINMENT FOR UNITED STATES AIR FORCE (USAF), UNITED STATES NAVY (USN), EUROPEAN PARTICIPATING AIR FORCES (EPAF) AND FOREIGN MILITARY SALES (FMS) CUSTOMERS.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to LOCKHEED MARTIN CORPORATION for work described as: TO PROVIDE POST-PRODUCTION ASIP SUPPORT REQUIRED TO MEET CUSTOMER NEEDS FOR WEAPON SYSTEM SUSTAINMENT FOR UNITED STATES AIR FORCE (USAF), UNITED STATES NAVY (USN), EUROPEAN PARTICIPATING AIR FORCES (EPAF) AND FOREIGN MILITARY SALES (FMS) CUSTOMERS. Key points: 1. Contract supports critical weapon system sustainment for multiple military branches and international partners. 2. High value contract awarded to a major defense contractor, indicating significant program importance. 3. Potential risk associated with sole-source procurement for specialized post-production support. 4. Spending falls within the 'Other Electronic and Precision Equipment Repair and Maintenance' sector.
Value Assessment
Rating: good
The $21.7 million award for post-production ASIP support appears reasonable given the scope of sustaining weapon systems for the USAF, USN, EPAF, and FMS customers. Benchmarking against similar complex sustainment contracts is difficult without more granular data on specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment. The justification for sole-source is likely based on specialized knowledge or existing infrastructure.
Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition may lead to a less optimal price, potentially increasing the overall cost to taxpayers.
Public Impact
Ensures continued operational readiness of vital weapon systems for the U.S. Air Force and Navy. Supports international partnerships through foreign military sales, strengthening allied defense capabilities. Maintains critical infrastructure and expertise for specialized electronic and precision equipment repair. Provides long-term sustainment, contributing to the lifecycle management of complex defense assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competition and potential cost savings.
- Long contract duration (617 days) requires ongoing monitoring.
- Reliance on a single contractor for critical sustainment.
Positive Signals
- Supports critical national defense requirements.
- Ensures operational readiness of key weapon systems.
- Includes support for allied nations via FMS.
Sector Analysis
This contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' sector, which is crucial for maintaining the operational effectiveness of defense assets. Spending in this area is often substantial due to the complexity and specialized nature of military equipment.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large defense company. There is no indication in the provided data whether small businesses will be subcontracted for any portion of this work.
Oversight & Accountability
The Department of Defense, specifically the Department of the Air Force, is the awarding agency. Oversight will be critical to ensure the contractor meets performance requirements and that the sole-source justification remains valid throughout the contract period.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Potential for contractor lock-in due to specialized support.
- Dependence on a single entity for critical sustainment functions.
- Ensuring effective oversight for a sole-source award.
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 $21.7 million to LOCKHEED MARTIN CORPORATION. TO PROVIDE POST-PRODUCTION ASIP SUPPORT REQUIRED TO MEET CUSTOMER NEEDS FOR WEAPON SYSTEM SUSTAINMENT FOR UNITED STATES AIR FORCE (USAF), UNITED STATES NAVY (USN), EUROPEAN PARTICIPATING AIR FORCES (EPAF) AND FOREIGN MILITARY SALES (FMS) CUSTOMERS.
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 $21.7 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-12-09.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for sole-source procurement typically relates to unique capabilities, proprietary technology, or the need for continuity of support for specific weapon systems. Agencies should provide detailed documentation justifying this approach. To ensure fair pricing, the government may conduct should-cost analyses, benchmark against similar contracts, or negotiate aggressively based on available market data, even without formal competition.
What are the key performance indicators (KPIs) for this contract, and how will Lockheed Martin's performance be measured to ensure effective weapon system sustainment?
Key performance indicators would likely include metrics such as response time for support requests, successful repair rates, availability of spare parts, adherence to maintenance schedules, and overall system uptime. Performance will be measured through regular reporting, technical reviews, and potentially site visits by government representatives to verify compliance with contract terms and quality standards.
How does this contract align with the Air Force's and Navy's long-term sustainment strategies, and are there plans to introduce competition in the future?
This contract directly supports the immediate need for weapon system sustainment, contributing to operational readiness. Long-term alignment depends on the specific weapon systems involved and the broader sustainment strategy. Future competition might be introduced if the technology matures, new providers emerge, or if the government decides to re-evaluate the sole-source justification based on evolving market conditions or strategic priorities.
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: 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: $23,074,398
Exercised Options: $21,691,996
Current Obligation: $21,691,996
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: 2025-04-01
Current End Date: 2026-12-09
Potential End Date: 2026-12-09 00:00:00
Last Modified: 2025-10-17
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