Air Force awards $13.2M for F-22 training systems, highlighting sole-source procurement for specialized aircraft

Contract Overview

Contract Amount: $13,209,006 ($13.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2026-12-31

End Date: 2027-01-31

Contract Duration: 31 days

Daily Burn Rate: $426.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-22 BUYING F-22 IN-A-BOX SYSTEMS FOR JOINT INTEGRATED TEST AND TRAINING CENTER (JITTC-NELLIS)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to LOCKHEED MARTIN CORPORATION for work described as: F-22 BUYING F-22 IN-A-BOX SYSTEMS FOR JOINT INTEGRATED TEST AND TRAINING CENTER (JITTC-NELLIS) Key points: 1. Procurement of F-22 'in-a-box' systems for a joint integrated test and training center. 2. Contract awarded to Lockheed Martin Corporation, the original equipment manufacturer. 3. Delivery order valued at over $13.2 million with a 31-month duration. 4. Focus on enhancing joint integrated test and training capabilities for the F-22. 5. Sole-source award indicates specialized nature and limited market for these systems. 6. Performance period extends through January 2027.

Value Assessment

Rating: fair

The contract value of $13.2 million for F-22 training systems appears reasonable given the specialized nature of the equipment and the sole-source award to the original manufacturer. Benchmarking is difficult without more data on similar training systems for advanced aircraft. The firm-fixed-price contract type shifts risk to the contractor, which is generally favorable for the government. However, the lack of competition limits the ability to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Lockheed Martin Corporation. As the original manufacturer of the F-22 aircraft, Lockheed Martin is presumed to be the only source capable of providing the specific 'in-a-box' systems required for the Joint Integrated Test and Training Center (JITTC). The lack of competition means that pricing and terms were negotiated directly with the sole provider, without the benefit of competitive bids to drive down costs.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to ensure the lowest possible cost. This necessitates strong government negotiation and oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who will utilize the JITTC for F-22 training. The contract delivers specialized 'in-a-box' systems essential for realistic joint integrated testing and training. The geographic impact is centered at JITTC-Nellis, likely located at Nellis Air Force Base, Nevada. This procurement supports the readiness and proficiency of F-22 pilots and maintenance crews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the negotiation process for sole-source contracts.
Dependence on a single contractor for critical training systems.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to the original equipment manufacturer ensures system compatibility and expertise.
Delivery order structure allows for phased acquisition of training capabilities.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant government investment. Contracts for specialized aircraft systems, like those for the F-22, are often awarded to original equipment manufacturers due to proprietary technology and unique design requirements. Spending in this area is driven by national security needs and the lifecycle support of advanced military platforms. Comparable spending benchmarks are difficult to establish due to the unique nature of F-22 specific training systems.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Lockheed Martin voluntarily engages small businesses in its supply chain for this specific effort.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program management personnel. As a sole-source award, the government's primary oversight will focus on ensuring the contractor meets the defined performance standards and delivery schedules. Transparency is limited due to the non-competitive nature, but contract modifications and performance reports would be subject to standard government review processes. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-22 Raptor Sustainment
Air Force Training Systems
Joint Simulation and Training Programs
Aerospace Defense Procurement

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for cost overruns without competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to LOCKHEED MARTIN CORPORATION. F-22 BUYING F-22 IN-A-BOX SYSTEMS FOR JOINT INTEGRATED TEST AND TRAINING CENTER (JITTC-NELLIS)

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 $13.2 million.

What is the period of performance?

Start: 2026-12-31. End: 2027-01-31.

What is the specific nature of the 'F-22 BUYING F-22 IN-A-BOX SYSTEMS' and why is it sole-sourced?

The 'F-22 IN-A-BOX SYSTEMS' likely refer to integrated hardware and software packages designed to simulate specific F-22 operational environments, avionics, and mission scenarios for training purposes. These systems are often highly specialized and proprietary, developed by the original aircraft manufacturer to ensure fidelity with the actual aircraft. The sole-source award to Lockheed Martin Corporation is probable because they are the original designer and manufacturer of the F-22 Raptor. Developing or certifying alternative training systems would require extensive, costly, and time-consuming validation processes, potentially compromising training effectiveness and schedule. Therefore, leveraging the OEM's expertise and existing intellectual property is often the most practical and efficient approach for such critical and unique training requirements.

How does the $13.2 million contract value compare to similar training system procurements?

Direct comparison of the $13.2 million contract value for F-22 'in-a-box' training systems to similar procurements is challenging due to the highly specialized and unique nature of F-22 specific training requirements. Training systems for advanced, fifth-generation fighter jets are inherently complex and expensive. Factors influencing cost include the level of simulation fidelity, the integration of real-world data feeds, the required hardware and software components, and the need for proprietary interfaces. Given that this is a sole-source award to the original equipment manufacturer (Lockheed Martin), the price is likely based on their established costs and a negotiated profit margin, rather than competitive market forces. Without access to detailed cost breakdowns or data on comparable sole-source or competitive awards for similar advanced aircraft training simulators, a precise value-for-money assessment against market rates is not feasible.

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

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the absence of competitive bidding. Taxpayers may not be receiving the best possible value if Lockheed Martin's proposed costs are not rigorously scrutinized and negotiated. Another risk is vendor lock-in; the government becomes dependent on Lockheed Martin for these specific training systems, potentially limiting future flexibility in upgrades or alternative solutions. Furthermore, sole-source contracts can sometimes suffer from less stringent performance oversight if the government lacks alternative options, although this is mitigated by the firm-fixed-price nature of the award. Ensuring robust contract management and performance monitoring is crucial to mitigate these risks.

What is the expected impact of these training systems on F-22 operational readiness?

The 'in-a-box' systems for the Joint Integrated Test and Training Center (JITTC) are expected to significantly enhance F-22 operational readiness. These systems will likely provide a more realistic and comprehensive training environment, allowing pilots and support personnel to practice complex mission scenarios, test new tactics, and refine procedures without using actual aircraft. This capability is crucial for maintaining the proficiency of F-22 crews in a safe, cost-effective, and repeatable manner. By enabling integrated training across different units and potentially with other joint force assets, these systems contribute to improved mission effectiveness and interoperability, ultimately bolstering the overall combat readiness of the F-22 fleet.

How does this contract fit into the broader context of F-22 sustainment and modernization spending?

This $13.2 million contract for F-22 training systems represents a component of the broader F-22 sustainment and modernization efforts. The F-22 Raptor, being a critical but aging platform, requires continuous investment to maintain its operational capability and relevance. Spending on sustainment includes maintenance, spare parts, and upgrades, while modernization focuses on incorporating new technologies and capabilities. Training systems are a vital part of sustainment, ensuring that personnel remain proficient in operating and maintaining the aircraft. This specific contract addresses the training aspect, complementing other investments in hardware, software, and infrastructure necessary to keep the F-22 fleet mission-ready. It reflects the ongoing commitment to supporting this high-value asset.

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 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: $13,209,006

Exercised Options: $13,209,006

Current Obligation: $13,209,006

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