F-22 Program Support contract awarded to Lockheed Martin for over $36.8 million, a sole-source delivery order

Contract Overview

Contract Amount: $36,846,676 ($36.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2030-06-30

End Date: 2030-06-30

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F22 PROGRAM SUPPORT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $36.8 million to LOCKHEED MARTIN CORPORATION for work described as: F22 PROGRAM SUPPORT Key points: 1. Contract awarded to incumbent, raising questions about competitive pricing. 2. Long-term support contract indicates ongoing reliance on this specific platform. 3. Delivery order structure suggests a need for immediate or phased support. 4. Cost-plus-fixed-fee structure may incentivize cost increases. 5. Focus on aircraft manufacturing sector highlights critical defense spending. 6. Texas location may have implications for regional economic impact.

Value Assessment

Rating: questionable

This contract's value is difficult to benchmark without detailed cost breakdowns. As a sole-source award for ongoing support, it's challenging to assess if the pricing reflects competitive market rates. The cost-plus-fixed-fee (CPFF) structure, while common for complex support, can lead to higher overall costs if not managed tightly. Further analysis of historical cost trends and comparison to similar sustainment contracts for advanced aircraft would be necessary to definitively determine value for money.

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 or is the sole provider of necessary goods or services. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit taxpayer savings by removing the downward pressure on prices that competition provides. Without a competitive process, the government may pay a premium for these services.

Public Impact

The U.S. Air Force benefits from continued sustainment and support for the F-22 Raptor fighter jet fleet. This contract ensures the operational readiness and longevity of a critical national defense asset. The primary geographic impact is within Texas, where the contractor is located. Workforce implications include continued employment for engineers, technicians, and support staff at Lockheed Martin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee contract type can lead to cost overruns if not managed effectively.
Lack of transparency in cost breakdown for sole-source awards.
Long-term nature of support contracts can lock in costs without periodic re-evaluation.

Positive Signals

Ensures continued operational readiness of a key strategic asset (F-22).
Leverages incumbent contractor's specialized knowledge of the F-22 platform.
Provides stability for critical defense capabilities.
Contract duration extends to mid-2030, indicating a long-term commitment to F-22 sustainment.

Sector Analysis

The F-22 Raptor is a fifth-generation stealth tactical fighter aircraft. Its sustainment and support fall under the aerospace and defense manufacturing sector, a critical area of federal spending. This contract represents a portion of the broader spending on maintaining and modernizing the U.S. Air Force's combat aviation capabilities. Comparable spending benchmarks would involve analyzing other long-term sustainment contracts for high-value, complex military aircraft.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. Lockheed Martin is a large prime contractor. There is no explicit information on subcontracting plans for small businesses within this specific award notice. The impact on the small business ecosystem is likely indirect, through potential subcontracting opportunities that are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Department of the Air Force. As a sole-source award, scrutiny may be higher to ensure fair and reasonable pricing. Transparency is limited due to the nature of the award and the CPFF structure. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

F-22 Raptor Sustainment
Combat Aircraft Maintenance
Aerospace Defense Contracts
Department of the Air Force Procurement
Lockheed Martin Defense Contracts

Risk Flags

Sole Source Award
Cost-Plus Contract Type
Lack of Competition
Long-Term Support Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.8 million to LOCKHEED MARTIN CORPORATION. F22 PROGRAM 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 $36.8 million.

What is the period of performance?

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

What is the historical spending trend for F-22 program support provided by Lockheed Martin?

Analyzing historical spending for F-22 program support reveals a consistent and significant investment by the Department of Defense over many years. While the specific data for this $36.8 million delivery order is for a future period (ending 2030), previous contracts for F-22 sustainment, maintenance, and upgrades have amounted to billions of dollars. Lockheed Martin, as the prime contractor, has historically received the majority of this funding. Spending often fluctuates based on modernization needs, fleet readiness requirements, and the introduction of new technologies or support methodologies. Understanding these past expenditures provides context for the ongoing investment in the F-22 program, highlighting its strategic importance and the long-term commitment required for its operational viability.

How does the cost-plus-fixed-fee (CPFF) contract type impact the value for money in this F-22 support contract?

The Cost-Plus-Fixed-Fee (CPFF) contract type for this F-22 program support raises potential concerns regarding value for money. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While this structure is often used for complex R&D or support services where cost estimation is difficult, it can incentivize contractors to incur higher costs, as their profit (the fixed fee) remains constant regardless of the total cost. This can lead to less cost-consciousness compared to fixed-price contracts. For taxpayers, this means the government bears the risk of cost overruns, and ensuring the 'allowable costs' are reasonable and necessary is paramount. Effective government oversight and robust auditing are crucial to mitigate the potential for inflated costs and ensure fair pricing.

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

Sole-source awards for critical defense program support, such as this F-22 program support contract, carry several inherent risks. The primary risk is the lack of competitive pressure, which can lead to inflated pricing and reduced incentive for the contractor to innovate or improve efficiency. Without competing bids, the government has less leverage to negotiate favorable terms and pricing. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to switch providers in the future, even if better alternatives emerge. There's also a potential risk of complacency from the incumbent contractor, assuming continued awards regardless of performance or cost-effectiveness. Robust justification and stringent oversight are essential to mitigate these risks.

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

Lockheed Martin Corporation has an extensive and long-standing track record as the prime contractor for the F-22 Raptor program, including its sustainment and support. As the original manufacturer, they possess unique institutional knowledge, technical expertise, and proprietary data essential for maintaining the aircraft's complex systems. Their performance history with the F-22 involves managing production, upgrades, and ongoing operational support. Beyond the F-22, Lockheed Martin is a major defense contractor across numerous platforms and services, including fighter jets, aerospace systems, and defense electronics, often securing sole-source or limited-competition contracts due to their specialized capabilities. While generally considered a capable provider, like any large defense contractor, they have faced scrutiny over costs and contract performance on various programs.

What are the potential implications of the F-22 program support contract ending in 2030?

The F-22 program support contract ending in June 2030 signifies a critical juncture for the U.S. Air Force's premier air superiority fighter. This date implies that the current scope of support, as defined by this delivery order, is planned through that period. The implications are multifaceted: firstly, it necessitates forward planning for the subsequent phase of F-22 sustainment, potentially involving new contracts, different support structures, or a transition towards phasing out the aircraft if replacements are ready. Secondly, it raises questions about the long-term strategy for the F-22 fleet's operational life, its role alongside newer platforms like the F-35 and the future NGAD (Next Generation Air Dominance) system. Decisions made regarding post-2030 support will significantly impact fleet readiness, modernization efforts, and overall defense spending priorities.

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: $239,761,414

Exercised Options: $239,761,414

Current Obligation: $36,846,676

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