Air Force awards $320M TACLINK 16 EMD contract to Lockheed Martin for Aircraft Manufacturing
Contract Overview
Contract Amount: $319,967,273 ($320.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-16
End Date: 2026-09-30
Contract Duration: 3,120 days
Daily Burn Rate: $102.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TACLINK 16 EMD
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $320.0 million to LOCKHEED MARTIN CORPORATION for work described as: TACLINK 16 EMD Key points: 1. Significant contract value of $320M for aircraft manufacturing. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long contract duration (2018-2026) suggests complex, ongoing development. 4. Cost-plus-fixed-fee contract type may incentivize cost overruns.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competitive bidding, makes a direct pricing assessment difficult. Benchmarking against similar sole-source aircraft development contracts is necessary to evaluate value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract may result in taxpayers paying a premium for the TACLINK 16 EMD.
Public Impact
Impacts Air Force's tactical communication capabilities. Potential for technological advancements in aircraft manufacturing. Long-term commitment of significant federal funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Long contract duration
Positive Signals
- Potential for advanced aircraft technology
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is often characterized by high R&D costs and long development cycles, frequently involving sole-source awards for specialized systems.
Small Business Impact
There is no indication of small business participation in this contract award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Regular reviews of cost and performance are crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Long-term financial commitment
- Limited transparency in pricing
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 $320.0 million to LOCKHEED MARTIN CORPORATION. TACLINK 16 EMD
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 $320.0 million.
What is the period of performance?
Start: 2018-03-16. End: 2026-09-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The agency should have conducted a thorough market research and price analysis to ensure the negotiated price was fair and reasonable, despite the lack of competition. Documentation of these efforts is critical for accountability.
How does the cost-plus-fixed-fee structure mitigate risks for the government in this long-term development contract?
A cost-plus-fixed-fee (CPFF) contract aims to provide the contractor with a reasonable profit while allowing the government to benefit from potential cost savings if the final costs are lower than estimated. However, it can also incentivize cost overruns if not managed diligently. Robust oversight and clear performance metrics are essential to mitigate this risk.
What are the key performance indicators (KPIs) for the TACLINK 16 EMD, and how is Lockheed Martin's performance being measured against them?
Key performance indicators would likely focus on technical performance, schedule adherence, and cost control. The Department of the Air Force should have established specific, measurable, achievable, relevant, and time-bound (SMART) KPIs. Regular performance reviews and milestone assessments are necessary to track progress and ensure the contractor meets contractual obligations.
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: $325,120,221
Exercised Options: $325,120,221
Current Obligation: $319,967,273
Actual Outlays: $9,807,339
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: 2018-03-16
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-07-16
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