DoD Awards $26.5M F-16 Training System to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $26,498,808 ($26.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-04-25
End Date: 2026-02-26
Contract Duration: 3,229 days
Daily Burn Rate: $8.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROMANIA AIR FORCE F-16 M5.2 TRAINING SYSTEM CONTRACT AWARD
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32825
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $26.5 million to LOCKHEED MARTIN CORPORATION for work described as: ROMANIA AIR FORCE F-16 M5.2 TRAINING SYSTEM CONTRACT AWARD Key points: 1. Significant contract value for specialized military training. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Impact on the aerospace and defense sector's training capabilities.
Value Assessment
Rating: questionable
The contract value of $26.5 million for an F-16 training system is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential alternatives or previous similar systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to a higher price than if competition were present.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure to lower the price for this critical training system.
Public Impact
Ensures continued training for Romania's F-16 fighter pilots. Supports advanced simulation technology for military readiness. Potential for follow-on contracts or upgrades in the future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Potential for cost overruns
Positive Signals
- Provides critical training capability
- Long-term contract duration
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on military training systems. Spending benchmarks for such specialized systems can vary widely based on technology and scope, but a $26.5 million award for a national air force's training system is a significant investment.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer money. Oversight should focus on the justification for the sole-source award and the negotiation process.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price negotiation.
- No clear benefit to small businesses indicated.
Tags
other-commercial-and-service-industry-ma, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to LOCKHEED MARTIN CORPORATION. ROMANIA AIR FORCE F-16 M5.2 TRAINING SYSTEM CONTRACT AWARD
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 $26.5 million.
What is the period of performance?
Start: 2017-04-25. End: 2026-02-26.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further details, it's presumed the Air Force determined Lockheed Martin was the only viable option for this specific F-16 training system, potentially due to existing platform integration or specialized expertise.
What are the potential risks associated with a sole-source contract of this magnitude?
The primary risk is the lack of competitive pricing, which can lead to the government paying more than necessary. Other risks include reduced innovation if alternative solutions aren't explored, and potential vendor lock-in, making future procurements or upgrades more expensive and less flexible.
How does this contract contribute to the overall effectiveness of Romania's Air Force F-16 operations?
This training system is crucial for maintaining pilot proficiency, ensuring operational readiness, and enabling pilots to effectively utilize the F-16's capabilities. Advanced simulation allows for realistic training scenarios, reducing the need for expensive live-fire exercises and enhancing safety.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery 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
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: $28,573,720
Exercised Options: $26,547,033
Current Obligation: $26,498,808
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $12,290,920
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-04-25
Current End Date: 2026-02-26
Potential End Date: 2026-02-26 00:00:00
Last Modified: 2025-09-10
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