DoD Awards $100M+ to Lockheed Martin for F-22 Infrared Defensive Suite
Contract Overview
Contract Amount: $100,315,846 ($100.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2029-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $54.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: F-22 INFRARED DEFENSIVE SUITE (IRDS)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $100.3 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 INFRARED DEFENSIVE SUITE (IRDS) Key points: 1. Significant investment in advanced aircraft defense technology. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long-term contract (5 years) indicates ongoing need for F-22 upgrades. 4. Focus on specialized aircraft manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $100.3M for the F-22 IRDS is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value against similar systems is difficult. The 'cost plus incentive fee' structure suggests potential for cost overruns if not managed tightly.
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 bidding process. The justification for sole-sourcing is critical for understanding the rationale.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, which may result in a less favorable price than if competition were present. The effectiveness of the defensive suite will ultimately determine the value for taxpayer investment.
Public Impact
Enhances survivability of the F-22 Raptor fleet against advanced threats. Supports the continued operational readiness of a key strategic asset. Potential for technological advancements in infrared countermeasures. Impacts the aerospace and defense industry, specifically advanced manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration increases exposure to potential cost increases.
Positive Signals
- Addresses critical defensive capabilities for a high-value asset.
- Ensures continued modernization of the F-22 fleet.
- Supports a key defense contractor.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a high-value segment of the defense industry. Spending benchmarks for specialized avionics and defensive systems are typically high due to complexity and R&D costs.
Small Business Impact
This contract was awarded 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 impact on the small business sector for this specific award.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to manage the cost-plus incentive fee structure and ensure the delivered defensive suite meets performance requirements within the negotiated parameters.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Potential for cost overruns
- Long contract duration
- Lack of transparency on pricing benchmarks
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 $100.3 million to LOCKHEED MARTIN CORPORATION. F-22 INFRARED DEFENSIVE SUITE (IRDS)
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 $100.3 million.
What is the period of performance?
Start: 2024-09-30. End: 2029-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or essential integration with existing platforms. To ensure fair pricing, the government likely relies on detailed cost analysis, negotiation with the contractor, and potentially independent cost estimates. The incentive fee structure aims to align contractor performance with cost and schedule objectives.
How does the performance of this Infrared Defensive Suite compare to industry benchmarks for similar aircraft, and what are the projected improvements in survivability?
Performance benchmarks for such specialized systems are often classified due to national security implications. However, the 'incentive fee' suggests that specific performance metrics related to threat detection, countermeasures, and overall survivability improvements are defined and measurable. The Air Force will likely conduct rigorous testing and evaluation to validate these improvements against expected outcomes.
What is the long-term strategy for the F-22 fleet's defensive capabilities, and how does this contract fit into that broader plan?
This contract represents an investment in maintaining and enhancing the F-22's survivability against evolving threats. The long duration suggests it's part of a sustained effort to keep the platform relevant. The broader strategy likely involves integrating next-generation sensors and countermeasures to ensure the F-22 remains a dominant force in contested airspace for its remaining service life.
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 INCENTIVE FEE (V)
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: $272,100,000
Exercised Options: $270,300,000
Current Obligation: $100,315,846
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: 2024-09-30
Current End Date: 2029-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2025-09-29
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