DoD awards $22.2M for F-16 flight test support to Lockheed Martin
Contract Overview
Contract Amount: $22,203,384 ($22.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-01
End Date: 2022-06-30
Contract Duration: 1,337 days
Daily Burn Rate: $16.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-16 FY19 BASELINE FLIGHT TEST SUPPORT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.2 million to LOCKHEED MARTIN CORPORATION for work described as: F-16 FY19 BASELINE FLIGHT TEST SUPPORT Key points: 1. Contract awarded to incumbent provider, Lockheed Martin. 2. Significant duration of 1337 days for flight test support. 3. Cost Plus Fixed Fee contract type may lead to cost overruns. 4. No small business participation noted.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type for engineering services can be less efficient than fixed-price contracts. Without a clear benchmark for this specific type of specialized flight test support, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition for this significant contract value may result in suboptimal use of taxpayer funds.
Public Impact
Supports critical F-16 aircraft sustainment and modernization efforts. Ensures continued operational readiness of a key Air Force asset. Potential for increased costs due to sole-source, cost-plus contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Supports critical defense asset
- Incumbent provider ensures continuity
Sector Analysis
Engineering services for defense applications are specialized and often awarded to established contractors. Benchmarks for flight test support are highly specific to aircraft type and mission requirements.
Small Business Impact
This contract does not appear to include any provisions for small business participation. Given the nature of the work, opportunities for subcontracting to small businesses may have been overlooked.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and efficient use of funds. Further review of the justification for not competing the award is recommended.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Extended contract duration
- No small business participation
- Potential for cost overruns
Tags
engineering-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to LOCKHEED MARTIN CORPORATION. F-16 FY19 BASELINE FLIGHT TEST 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 $22.2 million.
What is the period of performance?
Start: 2018-11-01. End: 2022-06-30.
What was the justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required services. However, the Air Force should have thoroughly explored if other qualified engineering firms could offer comparable flight test support for the F-16 to ensure the best value for taxpayers.
What are the potential cost implications of the Cost Plus Fixed Fee contract structure for this specific service?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it provides flexibility, it can incentivize cost overruns as the contractor's profit is fixed regardless of the final cost. For specialized flight test support, this structure may lead to higher overall expenditures compared to a fixed-price approach if not rigorously managed and monitored.
How does the duration of this contract impact the overall lifecycle cost and potential for future competition?
The extended duration of 1337 days (approximately 3.6 years) for this flight test support contract locks in the current provider for a significant period. This long-term commitment may limit opportunities for newer, potentially more innovative or cost-effective solutions to emerge and compete in the future. It also means that the government is committed to this specific cost structure for an extended timeframe.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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, FORT WORTH, TX, 76108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,327,004
Exercised Options: $26,380,009
Current Obligation: $22,203,384
Actual Outlays: $1,049,032
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F4262001D0058
IDV Type: IDC
Timeline
Start Date: 2018-11-01
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2025-09-30
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