DoD Awards $286M to Lockheed Martin for F-22 Labs Follow-On, Raising Concerns Over Competition
Contract Overview
Contract Amount: $286,230,467 ($286.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-12-31
End Date: 2028-05-31
Contract Duration: 1,978 days
Daily Burn Rate: $144.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: F-22 LABS FOLLOW ON
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $286.2 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 LABS FOLLOW ON Key points: 1. Significant contract value of $286.2M awarded to a single large business. 2. Sole-source award to Lockheed Martin for F-22 aircraft manufacturing. 3. Potential risk due to lack of competition and long contract duration. 4. Spending concentrated in the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $286.2M for F-22 Labs Follow-On is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft manufacturing services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in suboptimal pricing, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract (until 2028) could lock in potentially inefficient costs. Focus on a single, established contractor for critical aircraft manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Award to incumbent contractor with F-22 expertise
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a high-value and technologically complex industry. Benchmarks for similar follow-on contracts for advanced military aircraft are often characterized by significant R&D and specialized production costs.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost-effectiveness and prevent potential price gouging. Accountability for performance and cost management will be crucial given the lack of competitive pressure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Long contract duration
- Limited small business participation
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 $286.2 million to LOCKHEED MARTIN CORPORATION. F-22 LABS FOLLOW ON
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 $286.2 million.
What is the period of performance?
Start: 2022-12-31. End: 2028-05-31.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the inability of other sources to meet the requirement. The contracting agency should have conducted a thorough price analysis, comparing the proposed costs to historical data, independent government estimates, or commercial price lists if applicable, to ensure the price is fair and reasonable despite the lack of competition.
What are the risks associated with a sole-source contract for advanced aircraft manufacturing over a long duration?
Sole-source contracts for advanced manufacturing over extended periods carry risks of cost escalation, reduced innovation, and potential complacency from the contractor. Without competitive pressure, there's less incentive for the contractor to find efficiencies or offer cost savings. Furthermore, reliance on a single source can create supply chain vulnerabilities and limit flexibility if requirements change.
How does this spending align with the Air Force's long-term strategy for the F-22 program and overall fleet modernization?
This spending likely supports the sustainment, modernization, or upgrade of the existing F-22 fleet. Alignment with long-term strategy depends on the F-22's projected role in the future Air Force. If the F-22 is slated for continued significant service, this follow-on work is essential. However, if it's nearing retirement, the investment's strategic value needs careful evaluation against modernization priorities.
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: FIXED PRICE INCENTIVE (L)
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: $611,016,010
Exercised Options: $305,679,889
Current Obligation: $286,230,467
Actual Outlays: $433,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861122D0001
IDV Type: IDC
Timeline
Start Date: 2022-12-31
Current End Date: 2028-05-31
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2025-12-10
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