DoD Awards $54.7M Lockheed Martin F-22 Support Contract, Extending to 2026

Contract Overview

Contract Amount: $54,658,006 ($54.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-02-01

End Date: 2026-02-28

Contract Duration: 1,853 days

Daily Burn Rate: $29.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F-22 RAPID DELIVERY ORDER 0005

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $54.7 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 RAPID DELIVERY ORDER 0005 Key points: 1. Significant contract value for specialized aircraft support. 2. Sole-source award to Lockheed Martin, raising competition concerns. 3. Long duration suggests ongoing need but limits flexibility. 4. Focus on F-22 sustainment indicates critical defense asset support.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar sole-source sustainment contracts for advanced aircraft is difficult without more data, but the price appears substantial for the services rendered.

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 compared to a competitive environment. The justification for sole-source is critical for assessing value.

Taxpayer Impact: Taxpayer funds are committed without competitive bidding, potentially increasing the overall cost of F-22 sustainment.

Public Impact

Ensures continued operational readiness of the F-22 fleet. Supports advanced aerospace manufacturing and maintenance jobs. Potential for cost inefficiencies due to lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Supports critical defense asset
Experienced contractor

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft support and sustainment. Spending in this area is crucial for maintaining military readiness but requires careful oversight to ensure cost-effectiveness, especially for legacy platforms like the F-22.

Small Business Impact

The contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct small business impact.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and efficient execution. Robust performance metrics and regular reviews are essential to hold the contractor accountable.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for cost overruns (CPFF)
Long-term sustainment costs for aging platform
Limited visibility into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.7 million to LOCKHEED MARTIN CORPORATION. F-22 RAPID DELIVERY ORDER 0005

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 $54.7 million.

What is the period of performance?

Start: 2021-02-01. End: 2026-02-28.

What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. The Department of Defense should have a documented justification. To ensure fair pricing, they would likely conduct should-cost analysis, review historical pricing, and negotiate profit margins rigorously. Independent cost estimates and market research, even for sole-source, are crucial.

How does the cost-plus-fixed-fee structure impact the government's ability to control costs for F-22 sustainment over the contract's duration?

Cost-plus-fixed-fee (CPFF) contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is variable. This structure can incentivize contractors to incur costs to maximize their fee if not carefully monitored. Effective oversight, detailed cost accounting, and strong negotiation are vital to mitigate potential cost overruns and ensure value for the government.

What are the long-term implications of extending F-22 support contracts, considering the platform's age and the development of next-generation aircraft?

Extending support for aging platforms like the F-22 is necessary for maintaining current operational capabilities but represents a significant, ongoing investment. It raises questions about the balance between sustaining legacy systems and investing in future technologies. The long-term strategy should consider the total lifecycle cost, including sustainment, and the eventual transition to newer platforms to avoid disproportionate spending on outdated assets.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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 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: $58,726,620

Exercised Options: $58,726,620

Current Obligation: $54,658,006

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $27,688,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA861119D2123

IDV Type: IDC

Timeline