DoD awards $27.5M F-16 trainer contract to Lockheed Martin for Egyptian Air Force
Contract Overview
Contract Amount: $27,485,493 ($27.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-08-01
End Date: 2017-12-22
Contract Duration: 2,335 days
Daily Burn Rate: $11.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PEACE VECTOR VII_F-16 UNIT LEVEL TRAINERS FOR THE EGYPTIAN AIR FORCE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $27.5 million to LOCKHEED MARTIN CORPORATION for work described as: PEACE VECTOR VII_F-16 UNIT LEVEL TRAINERS FOR THE EGYPTIAN AIR FORCE Key points: 1. Contract awarded to a single, established prime contractor. 2. Focus on specialized training equipment for a specific aircraft. 3. Potential for follow-on training and sustainment needs. 4. Limited visibility into specific performance metrics. 5. Sector is defense manufacturing and training systems.
Value Assessment
Rating: fair
The contract value of $27.5 million is for a specific set of training units. Without detailed specifications or comparison points for similar unit-level trainers for foreign military sales, a precise value assessment is difficult. The fixed-price nature suggests cost control, but the lack of competition limits price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, likely due to the specialized nature of F-16 training systems and the specific requirements of the Egyptian Air Force. This limited competition restricts the government's ability to leverage market forces for potentially better pricing.
Taxpayer Impact: Taxpayer funds are used for foreign military sales, supporting allied defense capabilities. The lack of competition means the full potential for cost savings through competitive bidding is not realized.
Public Impact
Enhances the training capabilities of a key U.S. ally, contributing to regional stability. Supports the sustainment and operational readiness of F-16 aircraft operated by Egypt. Represents U.S. defense industry's role in international security cooperation. Potential for follow-on contracts related to training or aircraft support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition limits price discovery.
- Foreign military sales contracts can have complex oversight requirements.
- Dependence on a single contractor for specialized equipment.
Positive Signals
- Supports a key U.S. ally's defense capabilities.
- Contract awarded to a known prime contractor with relevant expertise.
- Fixed-price contract aims to control costs.
Sector Analysis
This contract falls within the defense sector, specifically focusing on specialized training equipment for military aircraft. Spending in this area is driven by national security priorities, foreign military sales agreements, and the need to maintain technological advantages for allied forces.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large business. There is no indication in the provided data that small businesses were involved as subcontractors on this specific contract.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force, ensuring contract terms are met and funds are used appropriately. The foreign military sales aspect may involve additional layers of inter-agency and international coordination.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition may lead to higher costs than a competitive bid.
- Potential for scope creep or change orders if requirements evolve.
- Dependence on a single supplier for critical training equipment.
- Geopolitical factors could impact delivery or support.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to LOCKHEED MARTIN CORPORATION. PEACE VECTOR VII_F-16 UNIT LEVEL TRAINERS FOR THE EGYPTIAN AIR FORCE
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 $27.5 million.
What is the period of performance?
Start: 2011-08-01. End: 2017-12-22.
What is the specific justification for limiting competition on this trainer system contract?
The limitation of competition is likely due to the highly specialized nature of F-16 unit-level trainers and the specific configuration required by the Egyptian Air Force. Often, such systems are proprietary or require unique integration with existing platforms, making it difficult or impossible for other manufacturers to provide a comparable solution without significant development.
How does the pricing of these trainers compare to similar systems procured competitively?
Without access to competitive benchmarks for identical or highly similar F-16 unit-level trainers, a direct price comparison is challenging. The 'NOT AVAILABLE FOR COMPETITION' status suggests that a competitive baseline is absent for this specific procurement. Future procurements, if opened to competition, could provide a clearer understanding of value.
What is the long-term effectiveness and sustainment plan for these trainers?
The provided data focuses on the initial procurement and does not detail long-term effectiveness metrics or sustainment plans. Effectiveness would be measured by the Egyptian Air Force's operational readiness and pilot proficiency improvements. Sustainment likely involves separate support contracts for maintenance, upgrades, and potential future training needs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825
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: $27,485,493
Exercised Options: $27,485,493
Current Obligation: $27,485,493
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-08-01
Current End Date: 2017-12-22
Potential End Date: 2019-09-23 00:00:00
Last Modified: 2021-04-01
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