DoD Awards $185M Lockheed Martin Contract for F-15SA Simulator Modernization
Contract Overview
Contract Amount: $185,214,961 ($185.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-12-31
End Date: 2026-09-30
Contract Duration: 5,021 days
Daily Burn Rate: $36.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SAUDI F-15SA FLEET MODERNIZATION SIMULATOR LINE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $185.2 million to LOCKHEED MARTIN CORPORATION for work described as: SAUDI F-15SA FLEET MODERNIZATION SIMULATOR LINE Key points: 1. Significant investment in advanced military training technology. 2. Sole-source award to Lockheed Martin, limiting competitive pricing. 3. Long contract duration (5021 days) raises concerns about cost escalation. 4. Focus on aircraft parts and auxiliary equipment manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $185.2 million for a simulator modernization is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar training system contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this large contract may result in taxpayers paying a premium for the simulator modernization.
Public Impact
Enhances pilot training capabilities for the F-15SA fleet. Supports advanced simulation technology development and maintenance. Impacts national security by ensuring readiness of allied air forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of clear performance metrics in provided data
Positive Signals
- Supports critical defense capabilities
- Modernizes essential training infrastructure
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to aircraft parts and auxiliary equipment manufacturing. Spending benchmarks for simulator modernization can vary widely based on complexity and technology.
Small Business Impact
The provided data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract. It is likely that Lockheed Martin, a large prime contractor, will manage the subcontracting.
Oversight & Accountability
Oversight of this sole-source contract by the Department of the Air Force is crucial to ensure cost control and adherence to the contract's objectives, especially given its long duration.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration increases risk of cost escalation.
- Potential for vendor lock-in.
- Lack of transparency on specific performance metrics.
- Dependency on a single contractor for critical training systems.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $185.2 million to LOCKHEED MARTIN CORPORATION. SAUDI F-15SA FLEET MODERNIZATION SIMULATOR LINE
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 $185.2 million.
What is the period of performance?
Start: 2012-12-31. End: 2026-09-30.
What is the estimated cost savings or value added by modernizing the F-15SA simulator compared to alternative training methods?
The value added by modernizing the F-15SA simulator likely lies in enhanced training realism, improved safety, and reduced operational costs compared to live flight training. Quantifying specific cost savings requires detailed analysis of training hours replaced and the efficiency gains from advanced simulation technology, which are not detailed in the provided contract data.
What are the specific risks associated with a sole-source, long-duration contract for simulator modernization?
The primary risks include potential cost overruns due to the lack of competitive pressure, vendor lock-in, and the possibility of technological obsolescence over the contract's extended period. There's also a risk that the contractor may not prioritize cost-efficiency as rigorously as they would under a competitive environment.
How effective is this simulator modernization expected to be in improving pilot proficiency and mission readiness for the F-15SA fleet?
The effectiveness is expected to be high, assuming the modernization incorporates state-of-the-art simulation technology and realistic scenarios. Improved training fidelity can lead to better pilot decision-making, faster reaction times, and overall enhanced combat readiness, directly contributing to the operational effectiveness of the F-15SA fleet.
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
Address: 1210 MASSILLON ROAD, AKRON, OH, 44315
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: $185,274,876
Exercised Options: $185,274,876
Current Obligation: $185,214,961
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $78,284,802
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-31
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-03
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