Air Force awards $11.15M contract for aircraft display systems to Lockheed Martin, a sole-source procurement

Contract Overview

Contract Amount: $11,152,064 ($11.2M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2025-06-20

End Date: 2026-05-31

Contract Duration: 345 days

Daily Burn Rate: $32.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: REPLACEMENT MULTI-FUNCTIONAL CONTROL DISPLAY OVERARCHING RESTRUCTURE (RMCD ROAR) IAW PERFORMANCE WORK STATEMENT (PWS) DATED 30 MAY 2025 ATTACHED TO THE BASIC CONTRACT.

Place of Performance

Location: MARIETTA, COBB County, GEORGIA, 30063

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to LOCKHEED MARTIN CORP for work described as: REPLACEMENT MULTI-FUNCTIONAL CONTROL DISPLAY OVERARCHING RESTRUCTURE (RMCD ROAR) IAW PERFORMANCE WORK STATEMENT (PWS) DATED 30 MAY 2025 ATTACHED TO THE BASIC CONTRACT. Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Sole-source award limits competitive pressure, potentially impacting price efficiency. 3. The contract duration of 345 days suggests a focused, short-term project. 4. This award falls under the Aircraft Manufacturing NAICS code, aligning with defense industry spending. 5. The contract is a delivery order against a basic contract, implying a pre-existing relationship. 6. The geographic location of performance is Georgia, a key state for aerospace and defense.

Value Assessment

Rating: questionable

Benchmarking the value of this $11.15 million contract is challenging due to its sole-source nature and the specific nature of 'REPLACEMENT MULTI-FUNCTIONAL CONTROL DISPLAY OVERARCHING RESTRUCTURE'. Without competitive bids or comparable contracts for similar display system overhauls, it's difficult to definitively assess if the pricing is optimal. The cost-plus-fixed-fee structure, while allowing for flexibility, also introduces risk for the government if costs escalate beyond initial estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, Lockheed Martin Corp., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for specialized needs or when only one vendor possesses the required capabilities, they inherently reduce price discovery and potentially lead to higher costs for the government compared to a fully competed contract with multiple bidders.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions typically achieved through competitive bidding, potentially resulting in a less cost-effective use of public funds.

Public Impact

The primary beneficiaries are the Department of the Air Force, which will receive updated aircraft control display systems. The services delivered involve the restructuring and replacement of multi-functional control displays for aircraft. Performance is expected to occur in Georgia, potentially impacting the local aerospace workforce and supply chain. This contract supports the operational readiness and technological advancement of Air Force aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Cost-plus-fixed-fee contract type carries inherent risk of cost escalation for the government.
Lack of competition makes it difficult to benchmark pricing and ensure optimal value for money.
The specific nature of 'display system overhauling' may require specialized expertise, but this was not publicly competed.

Positive Signals

Award to Lockheed Martin, a known defense contractor with established capabilities in aerospace systems.
Contract is a delivery order against a basic contract, suggesting a streamlined process for an existing relationship.
The contract aims to improve aircraft functionality through display system upgrades.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government investment. Aircraft manufacturing, under NAICS code 336411, represents a substantial portion of this spending. Contracts like this, focused on specific system upgrades, are common as the military seeks to maintain and modernize its aging fleets. The market is often dominated by a few large prime contractors, making sole-source or limited competition awards more frequent for specialized components or upgrades.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor is Lockheed Martin Corp., a large aerospace company. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific set-aside goals or transparency on subcontracting, the direct impact on the small business ecosystem for this particular award is likely minimal, though Lockheed Martin may engage small businesses indirectly through its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a delivery order against a basic contract, existing oversight mechanisms for the parent contract would likely apply. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The cost-plus-fixed-fee structure necessitates close monitoring of costs incurred by the contractor.

Related Government Programs

Aircraft Modernization Programs
Avionics Systems Procurement
Department of Defense Information Technology Contracts
Air Force Weapon Systems Support
Aerospace Manufacturing Contracts

Risk Flags

Sole Source Award
Cost-Plus Contract Type
Lack of Competition
Limited Transparency on PWS

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to LOCKHEED MARTIN CORP. REPLACEMENT MULTI-FUNCTIONAL CONTROL DISPLAY OVERARCHING RESTRUCTURE (RMCD ROAR) IAW PERFORMANCE WORK STATEMENT (PWS) DATED 30 MAY 2025 ATTACHED TO THE BASIC CONTRACT.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORP.

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 $11.2 million.

What is the period of performance?

Start: 2025-06-20. End: 2026-05-31.

What is the historical spending pattern for similar multi-functional control display overhauls or replacements within the Air Force?

Analyzing historical spending for similar display system overhauls within the Air Force is crucial for contextualizing the $11.15 million award to Lockheed Martin. While specific data for 'REPLACEMENT MULTI-FUNCTIONAL CONTROL DISPLAY OVERARCHING RESTRUCTURE' is not publicly detailed, the Air Force consistently invests in avionics and display upgrades across its fleet. Past contracts for cockpit modernization, electronic warfare system integration, and general avionics retrofits often range from several million to tens of millions of dollars, depending on the aircraft type, scope of work, and number of units involved. Sole-source awards for highly specialized or proprietary systems can skew average costs upwards. Without a direct comparison, it's difficult to ascertain if this specific award represents a typical or outlier cost for such a service.

What specific risks are associated with the Cost Plus Fixed Fee (CPFF) contract type for this display system upgrade?

The Cost Plus Fixed Fee (CPFF) contract type for the RMCD ROAR project introduces several risks for the government. Primarily, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to incur costs, as their fee remains constant regardless of the total project cost. The risk for the government lies in potential cost overruns if the contractor's cost estimates are inaccurate or if inefficiencies arise during performance. While the 'fixed fee' component caps the contractor's profit, it does not cap the total contract cost. Robust government oversight is essential to scrutinize allowable costs and ensure efficient performance to mitigate these risks.

How does the sole-source nature of this award impact the potential for innovation and technological advancement in aircraft display systems?

The sole-source award to Lockheed Martin for the RMCD ROAR project inherently limits the infusion of innovation that could arise from a competitive environment. When multiple companies vie for a contract, they often bring diverse approaches, cutting-edge technologies, and unique solutions to the table. A sole-source procurement, by definition, bypasses this competitive dynamic. While Lockheed Martin is a capable innovator, the absence of competing proposals means the Air Force may not be exposed to alternative technological pathways or potentially more advanced, cost-effective solutions that other firms might have offered. This can slow the pace of broader technological advancement within the sector if the chosen solution becomes the de facto standard without broader market validation.

What is Lockheed Martin's track record with similar multi-functional control display systems for the Department of Defense?

Lockheed Martin Corporation has a long and extensive track record as a major defense contractor, heavily involved in developing and integrating complex systems for various military branches, including the Department of Defense. They are known for their work on fighter jets (like the F-35, F-16, F-22), transport aircraft, and other aerospace platforms. This includes significant experience with avionics, cockpit displays, and integrated control systems. While specific details on 'REPLACEMENT MULTI-FUNCTIONAL CONTROL DISPLAY OVERARCHING RESTRUCTURE' projects are not always publicly itemized, Lockheed Martin's portfolio consistently features contracts related to aircraft modernization, system upgrades, and the development of advanced display technologies. Their established presence suggests they possess the requisite technical expertise and manufacturing capabilities for such a task.

Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

Publicly available information regarding specific performance metrics or Key Performance Indicators (KPIs) for this particular contract (RMCD ROAR) is limited. The contract is described as being 'IAW PERFORMANCE WORK STATEMENT (PWS) DATED 30 MAY 2025'. Typically, the PWS would contain detailed requirements, deliverables, and associated performance standards. However, the PWS document itself is not provided in the data. For a sole-source, cost-plus-fixed-fee contract, the government's oversight would focus on ensuring the contractor meets the technical requirements outlined in the PWS, manages costs effectively, and delivers the system within the agreed-upon schedule. Without access to the PWS, specific KPIs related to display functionality, reliability, or integration success cannot be detailed.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 86 S COBB DR SE, MARIETTA, GA, 30063

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: $15,725,514

Exercised Options: $15,725,514

Current Obligation: $11,152,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA852525DB003

IDV Type: IDC

Timeline