Air Force awards $31.8M for F-22 sustainment, with Lockheed Martin as sole provider

Contract Overview

Contract Amount: $31,766,598 ($31.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-09-22

End Date: 2025-11-30

Contract Duration: 1,530 days

Daily Burn Rate: $20.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-22 IN-A-BOX FOLLOW-ON

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 IN-A-BOX FOLLOW-ON Key points: 1. Contract awarded to incumbent for critical sustainment, raising questions about long-term cost-effectiveness. 2. Sole-source nature limits competitive pressure, potentially impacting pricing and innovation. 3. High-value contract for a mature platform indicates ongoing reliance and significant sustainment needs. 4. Performance period extends over two years, suggesting a need for consistent, long-term support. 5. Focus on aircraft manufacturing aligns with the specialized needs of advanced fighter jet maintenance.

Value Assessment

Rating: fair

This contract for F-22 sustainment is awarded to the original manufacturer, Lockheed Martin. Without competitive bidding, it is difficult to benchmark the value for money. The firm-fixed-price structure provides some cost certainty, but the lack of competition means taxpayers may not be receiving the most advantageous pricing. Historical data on F-22 sustainment costs would be needed for a more precise assessment of 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 Corporation. This is common for highly specialized sustainment of complex weapon systems where the original manufacturer possesses unique knowledge and capabilities. The lack of competition means there were no other bidders, and therefore no direct price comparison from alternative providers.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates strong oversight to ensure fair pricing.

Public Impact

Ensures the continued operational readiness of the F-22 Raptor fighter jet fleet for the U.S. Air Force. Supports critical maintenance, repair, and logistics services for a key national defense asset. Maintains specialized technical expertise within Lockheed Martin, crucial for advanced aircraft sustainment. Impacts the Air Force's ability to project air power and maintain air superiority.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs over the contract's duration.
Sole-source nature limits opportunities for other aerospace firms to gain experience on the F-22 platform.
Dependence on a single contractor for critical sustainment poses a long-term risk if contractor performance falters.

Positive Signals

Award to incumbent ensures continuity of essential services for a high-value asset.
Firm-fixed-price contract provides cost predictability for the Air Force.
Long-term performance period suggests a stable and reliable support relationship.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant R&D investment. Sustainment contracts for advanced platforms like the F-22 are a substantial part of this sector's spending. This contract fits within the broader category of aircraft manufacturing and maintenance services, a critical component of national defense spending. Comparable spending benchmarks would typically involve other major aircraft sustainment programs, which often involve sole-source or limited competition due to specialized requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component. Given the sole-source nature and the specialized requirements for F-22 sustainment, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available, beyond general support services. The focus remains on the prime contractor's specialized capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is limited due to the sole-source nature, but contract modifications and performance reports are typically available through federal procurement databases. The Inspector General of the Department of Defense may conduct audits or investigations into the contract's execution and cost management.

Related Government Programs

F-22 Raptor Sustainment Program
Aircraft Maintenance and Repair Services
Defense Logistics Support
Aerospace Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Critical system sustainment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to LOCKHEED MARTIN CORPORATION. F-22 IN-A-BOX 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 $31.8 million.

What is the period of performance?

Start: 2021-09-22. End: 2025-11-30.

What is Lockheed Martin's track record with F-22 sustainment contracts?

Lockheed Martin Corporation, as the original equipment manufacturer (OEM) for the F-22 Raptor, has historically been the sole provider of sustainment services for the aircraft. Their track record is intrinsically linked to the F-22 program's lifecycle, from development through its operational service. This includes managing complex supply chains, providing technical expertise, and ensuring the airworthiness of a highly advanced fighter jet. While specific performance metrics for past sustainment contracts are often not publicly detailed, the continued reliance on Lockheed Martin suggests a satisfactory, albeit uncompeted, performance history in maintaining the F-22 fleet's readiness.

How does the pricing of this contract compare to similar aircraft sustainment contracts?

Direct comparison of pricing for this F-22 sustainment contract is challenging due to its sole-source nature and the unique technological complexity of the F-22 platform. Unlike competed contracts where multiple bids provide a market benchmark, this award lacks that competitive pressure. However, sustainment costs for advanced fighter jets are generally high, often representing a significant portion of the total lifecycle cost of the aircraft. Benchmarking would typically involve comparing the per-flight-hour cost or the total sustainment cost relative to the fleet size against other fifth-generation fighter aircraft programs, such as the F-35, though even these comparisons are imperfect due to differing operational requirements and platform maturity.

What are the primary risks associated with this sole-source sustainment contract?

The primary risk associated with this sole-source contract is the potential for cost escalation without competitive oversight. Lockheed Martin, as the sole provider, faces limited pressure to reduce costs or improve efficiency beyond contractual requirements. Another significant risk is contractor dependency; the Air Force is reliant on Lockheed Martin's specialized knowledge and infrastructure for F-22 sustainment. Any disruption in this relationship, such as performance issues or supply chain problems within Lockheed Martin, could severely impact the F-22 fleet's operational readiness. Furthermore, the lack of competition limits opportunities for technological innovation that might arise from a more open market.

How effective is the F-22 sustainment program in maintaining fleet readiness?

The effectiveness of the F-22 sustainment program is critical for maintaining the U.S. Air Force's air superiority capabilities. While specific, real-time readiness rates are often classified, the continued operation and deployment of F-22 squadrons indicate a generally effective sustainment effort. The program's effectiveness is measured by its ability to meet operational availability targets, minimize downtime for maintenance, and ensure the F-22s are mission-capable when required. The long duration of the contract and the ongoing investment suggest that the program is considered effective enough to warrant continued, albeit sole-source, support.

What are the historical spending patterns for F-22 sustainment?

Historical spending on F-22 sustainment has been substantial, reflecting the complexity and advanced nature of the aircraft. Over the F-22's operational life, billions of dollars have been allocated to ensure its readiness. This spending typically covers a range of activities including depot maintenance, component repair and overhaul, logistics support, software updates, and technical data management. Annual sustainment costs can fluctuate based on fleet usage, planned maintenance schedules, and unforeseen repair needs. The consistent allocation of significant funds year after year underscores the high cost associated with maintaining a fleet of advanced, low-production-rate aircraft like the F-22.

Industry Classification

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

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $36,324,985

Exercised Options: $32,229,755

Current Obligation: $31,766,598

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