Air Force awards $30.3M to Lockheed Martin for F-22 sensor enhancements, continuing a sole-source relationship

Contract Overview

Contract Amount: $30,361,418 ($30.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2028-04-30

End Date: 2028-04-30

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-22 SENSOR ENHANCEMENTS (SEE) GROUP A KIT ORDERING PERIOD 3 AND ORDERING PERIOD 4

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 SENSOR ENHANCEMENTS (SEE) GROUP A KIT ORDERING PERIOD 3 AND ORDERING PERIOD 4 Key points: 1. The contract focuses on critical sensor upgrades for the F-22 fighter jet fleet. 2. This award continues a long-standing relationship with Lockheed Martin for F-22 sustainment and upgrades. 3. The firm-fixed-price contract type suggests a defined scope and cost structure. 4. The duration of the ordering periods indicates a phased approach to delivery and implementation. 5. The absence of competition raises questions about potential cost efficiencies and alternative solutions. 6. The contract is managed by the Department of the Air Force, highlighting its importance to air superiority.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparisons to similar sole-source sensor upgrade contracts for advanced aircraft. Given the specialized nature of F-22 components and the sole-source award to the original manufacturer, pricing is likely influenced by proprietary technology and limited market alternatives. However, the substantial dollar amount warrants scrutiny to ensure it reflects fair market value for the technology and services provided, especially considering the long-term sustainment needs of a high-value asset like the F-22.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Lockheed Martin Corporation, the original manufacturer of the F-22 aircraft. This approach is common for highly specialized systems where only the original equipment manufacturer possesses the necessary technical data, tooling, and expertise. The lack of a competitive bidding process means that price discovery is limited, and the government relies on negotiation and oversight to ensure a fair price.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competition is absent, which can reduce pressure on the contractor to offer the most competitive pricing.

Public Impact

The primary beneficiaries are the U.S. Air Force and its F-22 Raptor fleet, ensuring continued operational readiness and technological superiority. The services delivered include the manufacturing and delivery of sensor enhancement kits, crucial for maintaining the F-22's advanced capabilities. The geographic impact is primarily within the United States, supporting Air Force bases and operations. Workforce implications include specialized engineering, manufacturing, and logistics roles at Lockheed Martin and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source nature limits competitive pressure on pricing.
Potential for cost overruns in specialized defense contracts.
Dependence on a single contractor for critical F-22 components.

Positive Signals

Ensures continued technological advantage for a key strategic asset (F-22).
Leverages established expertise of the original equipment manufacturer.
Firm-fixed-price contract provides cost certainty for the awarded scope.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on upgrades for advanced fighter jets. The market for such specialized defense components is highly concentrated, with original equipment manufacturers like Lockheed Martin dominating. Spending in this area is driven by the need to maintain the technological edge of aging but critical platforms, often involving significant investment in research, development, and specialized production capabilities. Comparable spending benchmarks would typically involve other sole-source sustainment and upgrade contracts for high-end military aircraft.

Small Business Impact

This contract does not appear to include specific small business set-asides. As a sole-source award to a large prime contractor, the primary subcontracting opportunities for small businesses would be determined by Lockheed Martin's internal procurement practices and supply chain management. The extent to which small businesses benefit will depend on their ability to compete for subcontracts within Lockheed Martin's established network.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of the Air Force, likely through program management offices and contracting officers. Accountability measures would include contract performance monitoring, adherence to delivery schedules, and quality control of the sensor enhancement kits. Transparency is generally limited for sole-source defense contracts due to proprietary information and national security considerations, though contract awards are publicly reported.

Related Government Programs

F-22 Raptor Sustainment Programs
Advanced Avionics and Sensor Development
Defense Aircraft Component Manufacturing
Air Force Fighter Jet Modernization

Risk Flags

Sole-source award
Potential for cost escalation in specialized defense contracts
Long-term reliance on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to LOCKHEED MARTIN CORPORATION. F-22 SENSOR ENHANCEMENTS (SEE) GROUP A KIT ORDERING PERIOD 3 AND ORDERING PERIOD 4

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 $30.4 million.

What is the period of performance?

Start: 2028-04-30. End: 2028-04-30.

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

Lockheed Martin Corporation has been the prime contractor for the F-22 Raptor since its inception, responsible for its development, production, and sustainment. Their track record includes managing complex upgrade programs and ensuring the operational readiness of the fleet. Historically, they have delivered numerous modifications and enhancements to the F-22's avionics, software, and structural components. While their expertise is undeniable, large sole-source defense contracts can sometimes face scrutiny regarding cost control and schedule adherence, though specific performance metrics for this particular contract are not publicly detailed.

How does the pricing of this contract compare to similar sole-source defense procurements?

Direct comparison of pricing for sole-source defense contracts is difficult due to the proprietary nature of technology and the unique specifications of each system. However, the $30.3 million award for sensor enhancement kits for the F-22 falls within the expected range for specialized avionics upgrades on advanced military platforms. Factors influencing this price include the complexity of the sensor technology, the need for integration with existing F-22 systems, and the limited number of qualified suppliers. The firm-fixed-price structure aims to provide cost certainty, but the absence of competition means the government relies heavily on negotiation and cost analysis to ensure value.

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

The primary risks associated with this sole-source contract include potential cost overruns if initial estimates are inaccurate, delays in delivery due to manufacturing or supply chain issues, and the risk of technological obsolescence if the enhancements do not adequately future-proof the F-22's sensor capabilities. Furthermore, the lack of competition means the government has limited leverage to drive down costs or seek alternative solutions, making effective contract management and oversight crucial. Dependence on a single supplier also poses a risk if that supplier faces financial instability or strategic shifts.

How effective are sensor enhancements in maintaining the F-22's combat effectiveness?

Sensor enhancements are critical for maintaining the F-22's combat effectiveness, as its advanced sensor suite is central to its situational awareness, targeting capabilities, and electronic warfare functions. Upgrades ensure the F-22 can detect, track, and engage threats in increasingly complex and contested environments. By incorporating newer technologies, these enhancements help counter advancements made by potential adversaries and ensure the F-22 remains a premier air superiority fighter. The effectiveness is measured by improved detection ranges, reduced false alarms, enhanced data fusion, and the ability to integrate new threat intelligence.

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

Historical spending on F-22 sensor upgrades and sustainment has been substantial, reflecting the complexity and advanced nature of the aircraft. Over the F-22's lifecycle, billions of dollars have been allocated towards maintaining and modernizing its systems, including avionics and sensors. This specific contract, valued at $30.3 million, represents a portion of the ongoing sustainment and upgrade efforts. Annual spending can fluctuate based on the specific modernization priorities and the phasing of upgrade kits, but consistent investment is required to keep the F-22 operationally relevant.

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: FIRM FIXED PRICE (J)

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: $30,372,849

Exercised Options: $30,361,418

Current Obligation: $30,361,418

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