DoD Awards $271.6M F-16 Support Contract to Lockheed Martin for Iraq
Contract Overview
Contract Amount: $271,604,175 ($271.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-09-01
End Date: 2024-12-31
Contract Duration: 1,948 days
Daily Burn Rate: $139.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IRAQ F-16 CLS PHASE IV
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $271.6 million to LOCKHEED MARTIN CORPORATION for work described as: IRAQ F-16 CLS PHASE IV Key points: 1. Contract awarded to sole-source provider Lockheed Martin. 2. Significant funding allocated for ongoing F-16 sustainment. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Focus on supporting foreign military sales (Iraq). 5. Limited transparency on specific services provided.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, while common for complex services, can lead to higher costs if not managed tightly. Benchmarking is difficult without detailed cost breakdowns, but the significant award amount suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, citing 'NOT AVAILABLE FOR COMPETITION'. This limits price discovery and potentially increases costs for taxpayers as there is no competitive pressure on the contractor.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, raising concerns about cost-effectiveness and the absence of competitive bidding to ensure the best value.
Public Impact
Supports U.S. foreign policy objectives by providing critical aircraft sustainment to an allied nation. Ensures the operational readiness of F-16 aircraft for Iraq's defense forces. Contributes to the U.S. aerospace and defense industry's revenue and employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee structure may incentivize higher spending.
- Lack of detailed service breakdown hinders transparency.
- Long contract duration (1948 days) increases risk exposure.
Positive Signals
- Supports a key foreign military partner.
- Ensures continued operation of advanced military assets.
- Leverages established contractor expertise for F-16 sustainment.
Sector Analysis
This contract falls under 'All Other Support Services' within the defense sector. Spending in this area is crucial for maintaining complex military platforms like the F-16, but often involves specialized, sole-source providers.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
Oversight is managed by the Department of the Air Force. The sole-source nature and CPFF structure necessitate robust oversight to ensure costs are reasonable and services are delivered effectively.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition.
- Potential for cost overruns (CPFF).
- Limited transparency on services.
- Long contract duration.
- Dependency on a single contractor.
Tags
all-other-support-services, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $271.6 million to LOCKHEED MARTIN CORPORATION. IRAQ F-16 CLS PHASE IV
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 $271.6 million.
What is the period of performance?
Start: 2019-09-01. End: 2024-12-31.
What specific sustainment services are included in this $271.6M contract, and how do they align with Iraq's F-16 operational needs?
The contract details are limited, but 'All Other Support Services' typically encompass maintenance, repair, logistics, and technical support for the F-16 fleet. The specific breakdown is crucial for assessing value. Given the context of foreign military sales, these services are intended to ensure the continued operational readiness and effectiveness of Iraq's F-16 aircraft, supporting their national defense capabilities.
What measures are in place to mitigate cost overruns given the Cost Plus Fixed Fee (CPFF) structure and sole-source nature of this contract?
With a CPFF contract awarded on a sole-source basis, robust government oversight is critical. This includes detailed auditing of contractor costs, performance metrics, and regular reviews of the fixed fee to ensure it remains appropriate. The Air Force must actively manage the contract to prevent scope creep and ensure that only necessary and efficient services are procured, thereby mitigating potential cost overruns.
How does this contract contribute to the long-term effectiveness and readiness of Iraq's F-16 fleet, and what is the U.S. strategic benefit?
This contract ensures that Iraq's F-16 fleet receives necessary maintenance, spare parts, and technical support, directly contributing to its long-term operational readiness. This bolsters Iraq's defense capabilities, enhancing regional stability. The U.S. strategic benefit lies in strengthening a key partner's military capacity, promoting security cooperation, and maintaining influence in a critical region through the provision of advanced military support.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $271,604,175
Exercised Options: $271,604,175
Current Obligation: $271,604,175
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $3,973,491
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-08-12
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