DoD awards $180M+ to Lockheed Martin for F-22 CTF Maintenance and Test Execution
Contract Overview
Contract Amount: $180,243,548 ($180.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-12-21
End Date: 2022-02-28
Contract Duration: 1,895 days
Daily Burn Rate: $95.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-22 CTF MAINTENANCE&INFRASTRUCTURE&TEST EXECUTION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $180.2 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 CTF MAINTENANCE&INFRASTRUCTURE&TEST EXECUTION Key points: 1. Significant contract value awarded to a single large defense contractor. 2. Focus on critical F-22 fighter jet sustainment and testing. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. High reliance on incumbent contractor for specialized aerospace services.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to higher costs if not managed tightly. Benchmarking against similar complex aircraft sustainment contracts is difficult without more detailed cost breakdowns.
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 competition, potentially leading to higher prices than if multiple vendors had bid.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized F-22 sustainment services.
Public Impact
Ensures continued operational readiness of the F-22 Raptor fleet. Supports critical testing and infrastructure for advanced fighter jet programs. Impacts national security through sustained defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Long performance period increases risk of cost escalation.
Positive Signals
- Essential for maintaining a key strategic asset.
- Contractor has specialized knowledge of the F-22 system.
Sector Analysis
This contract falls within the Defense sector, specifically supporting advanced aircraft sustainment. Spending benchmarks for complex aerospace maintenance and testing are highly variable, but large sole-source contracts for critical platforms often represent significant investments.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data, suggesting this contract primarily benefits large aerospace firms.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The CPFF structure necessitates robust monitoring to ensure costs are reasonable and the fixed fee is justified. Transparency in cost reporting is crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in cost breakdown
- Long performance period
- High reliance on incumbent
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.2 million to LOCKHEED MARTIN CORPORATION. F-22 CTF MAINTENANCE&INFRASTRUCTURE&TEST EXECUTION
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 $180.2 million.
What is the period of performance?
Start: 2016-12-21. End: 2022-02-28.
What is the projected cost growth potential under this CPFF contract, and what mechanisms are in place to control it?
The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost growth as the contractor is reimbursed for allowable costs plus a predetermined fee. Effective oversight by the Department of the Air Force, including rigorous auditing of expenditures and performance metrics, is critical to mitigate this risk. The contract's specific terms regarding cost ceilings and incentive clauses would further define the potential for growth and the government's ability to control it.
How does the lack of competition impact the overall value for money for this F-22 sustainment contract?
A sole-source award bypasses the competitive bidding process, which typically drives down prices and encourages innovation. Without competing proposals, the government relies heavily on negotiation and the contractor's proposed pricing. This can lead to a higher price than might be achieved in a competitive environment, potentially reducing the overall value for money unless the contractor's unique capabilities and historical performance justify the premium.
What are the long-term implications of sole-source sustainment contracts for critical defense assets like the F-22?
Long-term sole-source contracts can create vendor lock-in, making it difficult and costly to switch providers or introduce new technologies. While ensuring continuity for critical assets, it can stifle competition and innovation in the long run. This approach requires diligent government oversight to ensure fair pricing and performance, and strategic planning to eventually introduce competition or develop alternative sustainment strategies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $287,678,190
Exercised Options: $188,936,025
Current Obligation: $180,243,548
Actual Outlays: $6,902,475
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861113D2850
IDV Type: IDC
Timeline
Start Date: 2016-12-21
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2025-03-31
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