F-22 Program Office Support contract awarded to Lockheed Martin for over $60 million

Contract Overview

Contract Amount: $60,098,109 ($60.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2026-06-30

End Date: 2030-06-30

Contract Duration: 1,461 days

Daily Burn Rate: $41.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F22 PROGRAM OFFICE SUPPORT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $60.1 million to LOCKHEED MARTIN CORPORATION for work described as: F22 PROGRAM OFFICE SUPPORT Key points: 1. Contract value suggests significant investment in sustainment and modernization of the F-22 fleet. 2. Sole-source award indicates a lack of readily available alternatives for specialized F-22 program support. 3. Long duration of the contract (4 years) points to a sustained need for these services. 4. Cost-plus-fixed-fee contract type may incentivize cost overruns if not closely monitored. 5. Focus on aircraft manufacturing sector highlights the specialized nature of the support required. 6. Geographic location in Texas may indicate a concentration of F-22 related activities or personnel.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services provided. However, a $60 million award over four years for program office support for a major defense asset like the F-22 is substantial. The cost-plus-fixed-fee structure requires careful oversight to ensure value for money, as it can lead to higher costs compared to fixed-price contracts if not managed effectively. Without comparable contract data for similar program support, it's difficult to definitively assess if the pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary knowledge, or is the only source capable of meeting the requirement. While this can ensure specialized expertise, it limits price discovery and potentially leads to higher costs for the government compared to a competitive procurement. The lack of competition means taxpayers do not benefit from potential cost savings that could arise from a bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these services, as there was no competitive pressure to drive down costs. This highlights the importance of robust justification for sole-source awards.

Public Impact

The primary beneficiaries are the U.S. Air Force and the F-22 program, ensuring continued operational readiness and modernization of the fleet. Services delivered likely include program management, technical expertise, logistics support, and strategic planning for the F-22 Raptor. The geographic impact is concentrated in Texas, where the contractor is located, potentially supporting local jobs and the regional economy. Workforce implications include the employment of specialized personnel within Lockheed Martin who possess the necessary skills for F-22 program support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type necessitates stringent oversight to prevent cost overruns and ensure efficient resource utilization.
Sole-source award limits competitive pressure, potentially impacting the government's ability to secure the best possible pricing.
Long contract duration requires continuous monitoring to ensure performance remains aligned with evolving program needs and budget constraints.

Positive Signals

Award to a prime contractor with extensive experience on the F-22 program suggests continuity and deep institutional knowledge.
Contract duration indicates a stable, long-term requirement, allowing for strategic planning and resource allocation.
Focus on program office support implies a commitment to effective management and sustainment of a critical defense asset.

Sector Analysis

The F-22 Raptor is a fifth-generation, single-seat, twin-engine, all-weather stealth tactical fighter aircraft developed for the United States Air Force. The aircraft manufacturing sector, particularly for advanced military platforms, is characterized by high R&D costs, long development cycles, and significant government investment. Contracts for sustainment, modernization, and program support are crucial for maintaining the operational readiness of such complex systems. Comparable spending benchmarks for similar program support contracts for advanced fighter jets would typically be in the tens to hundreds of millions of dollars annually, depending on the scope of services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Lockheed Martin, as the prime contractor, may have subcontracting opportunities for small businesses. However, the extent to which small businesses will participate is not detailed in the provided data. The focus on a sole-source award to a large prime contractor might limit direct opportunities for small businesses to compete for the prime contract itself.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force's program management offices responsible for the F-22. Accountability measures would be embedded within the contract's performance metrics and reporting requirements. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-22 Raptor Sustainment
Advanced Tactical Fighter Programs
Aerospace Defense Manufacturing
Air Force Weapon System Support
Lockheed Martin Defense Contracts

Risk Flags

Sole-source award may limit price competition.
Cost-plus-fixed-fee contract type requires diligent cost oversight.
Long contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.1 million to LOCKHEED MARTIN CORPORATION. F22 PROGRAM OFFICE SUPPORT

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 $60.1 million.

What is the period of performance?

Start: 2026-06-30. End: 2030-06-30.

What specific services are included under 'F22 PROGRAM OFFICE SUPPORT'?

The term 'F22 PROGRAM OFFICE SUPPORT' is broad and typically encompasses a range of activities essential for the effective management and sustainment of the F-22 fighter jet program. These services often include program management, which involves planning, directing, and coordinating activities related to the F-22. Technical support is also a key component, providing engineering expertise, systems analysis, and troubleshooting for the aircraft's complex systems. Logistics support, including supply chain management, maintenance planning, and readiness assessment, is crucial for ensuring the F-22 fleet remains operational. Furthermore, the support may involve financial management, contract administration, strategic planning, and policy development to guide the program's future direction and ensure alignment with Air Force objectives. The specific breakdown of these services and their associated costs would be detailed in the contract's statement of work.

How does the cost-plus-fixed-fee (CPFF) contract type compare to other contract types for this type of service?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is significant uncertainty in the costs involved, such as in research and development or complex program support. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set upfront, and the contractor assumes more risk for cost overruns. For program office support, CPFF can be advantageous if it allows flexibility to adapt to evolving needs. However, it places a greater burden on the government to meticulously monitor costs to prevent inefficiencies and ensure value. Compared to other cost-reimbursement types like Cost Plus Incentive Fee (CPIF), CPFF offers less direct incentive for the contractor to control costs beyond the fixed fee.

What is the historical spending trend for F-22 program support, and how does this award fit in?

Analyzing historical spending trends for F-22 program support requires access to detailed historical contract data, which is not fully provided here. However, the F-22 program has been operational for many years, and sustainment and modernization efforts are ongoing, suggesting consistent and significant spending. Typically, programs of this magnitude involve substantial annual investments in areas like maintenance, upgrades, training, and program management. This $60 million award, spanning four years, represents a portion of the overall F-22 sustainment budget. Without prior year data, it's difficult to definitively state if this award represents an increase, decrease, or stable level of spending. However, the long duration and substantial value indicate a continued commitment to supporting the F-22 fleet, aligning with expectations for a major defense asset.

What are the potential risks associated with a sole-source award for critical defense program support?

Sole-source awards for critical defense program support, like that for the F-22, carry several potential risks. The most significant is the lack of price competition, which can lead to higher costs for taxpayers as the contractor faces less pressure to offer competitive pricing. This can result in a reduced value for money. Another risk is complacency; without the threat of losing future business to competitors, the contractor might be less motivated to innovate or improve efficiency. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to transition to alternative providers if performance issues arise or if market conditions change. Ensuring robust contract management, performance monitoring, and clear deliverables is paramount to mitigate these risks when sole-source procurement is deemed necessary.

What is Lockheed Martin's track record with the F-22 program and similar defense contracts?

Lockheed Martin Corporation is the prime contractor for the F-22 Raptor and has been involved in its development, production, and sustainment since its inception. Their track record with the F-22 program is extensive, encompassing the design, manufacturing, integration, and ongoing support of the aircraft. They have consistently been awarded contracts for sustainment, upgrades, and program management related to the F-22 fleet. Lockheed Martin also holds numerous other large defense contracts across various platforms and services for the U.S. military and international allies, demonstrating a broad capability in managing complex aerospace and defense programs. While specific performance metrics for all contracts are not publicly detailed, their continued selection for critical programs like the F-22 suggests a generally positive performance history and strong relationship with the Department of Defense.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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: $522,511,045

Exercised Options: $60,598,109

Current Obligation: $60,098,109

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