ROKAF F-16V Upgrade Program: $92.5M Contract Awarded to Lockheed Martin for Foreign Military Sales
Contract Overview
Contract Amount: $92,505,324 ($92.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-08-26
End Date: 2031-08-29
Contract Duration: 2,194 days
Daily Burn Rate: $42.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: REPUBLIC OF KOREA AIR FORCE (ROKAF) F-16V UPGRADE PROGRAM FMS CASE NUMBER: KS-D-QEO LOA POP: OCT 2022 TO MAR 2029 SEE ATTACHMENT 1, STATEMENT OF WORK, DATED 7 AUGUST 2025.
Plain-Language Summary
Department of Defense obligated $92.5 million to LOCKHEED MARTIN CORPORATION for work described as: REPUBLIC OF KOREA AIR FORCE (ROKAF) F-16V UPGRADE PROGRAM FMS CASE NUMBER: KS-D-QEO LOA POP: OCT 2022 TO MAR 2029 SEE ATTACHMENT 1, STATEMENT OF WORK, DATED 7 AUGUST 2025. Key points: 1. This contract supports the Republic of Korea Air Force's F-16V upgrade program, a significant foreign military sale. 2. Lockheed Martin Corporation, a major defense contractor, is the sole awardee. 3. The contract's fixed-price nature aims to control costs, but the lack of competition warrants scrutiny. 4. The sector is dominated by large defense primes, limiting opportunities for smaller players.
Value Assessment
Rating: fair
The contract is a Firm Fixed Price (FFP) type, which generally provides cost certainty. However, without competitive bidding, it's difficult to assess if the $92.5 million price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no competition. This limits price discovery and potentially leads to higher costs for the ROKAF and U.S. taxpayers.
Taxpayer Impact: While this is a foreign military sale, U.S. taxpayers may indirectly bear costs through program management and oversight, and the lack of competition sets a precedent.
Public Impact
Enhances the capabilities of allied air forces, contributing to regional security. Supports U.S. foreign policy objectives by strengthening military partnerships. Potential for technology transfer and interoperability between U.S. and ROK forces. Ensures continued U.S. defense industrial base readiness through foreign sales.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Long contract duration (Oct 2022 - Mar 2029) increases long-term risk.
- No indication of small business participation.
Positive Signals
- Supports a key U.S. ally.
- Firm Fixed Price contract type.
- Leverages established F-16 platform.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a segment of the broader aerospace and defense industry. Spending in this area is often driven by modernization programs and foreign military sales, with significant consolidation among prime contractors.
Small Business Impact
The data indicates no specific set-aside for small businesses (ss: false, sb: false). Given the sole-source nature and the prime contractor, it is unlikely that small businesses will be directly involved in this specific contract, though they may be lower-tier subcontractors.
Oversight & Accountability
The Department of Defense, specifically the Department of the Air Force, is the contracting agency. Oversight will focus on program execution, delivery schedules, and adherence to the Statement of Work, particularly given the foreign military sales context.
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.
- Long contract duration.
- Lack of small business participation.
- Potential for cost growth over contract life.
- Foreign military sale oversight complexity.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.5 million to LOCKHEED MARTIN CORPORATION. REPUBLIC OF KOREA AIR FORCE (ROKAF) F-16V UPGRADE PROGRAM FMS CASE NUMBER: KS-D-QEO LOA POP: OCT 2022 TO MAR 2029 SEE ATTACHMENT 1, STATEMENT OF WORK, DATED 7 AUGUST 2025.
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 $92.5 million.
What is the period of performance?
Start: 2025-08-26. End: 2031-08-29.
What is the justification for the sole-source award, and what steps were taken to ensure the best possible price without competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. For this F-16V upgrade, it might be tied to specific Lockheed Martin intellectual property or integration requirements. However, without detailed documentation, it's difficult to ascertain the exact reasoning or the measures taken to mitigate the lack of competition, such as independent cost estimates or negotiation strategies.
What are the potential risks associated with a sole-source, long-duration contract for aircraft upgrades, particularly concerning cost overruns and technological obsolescence?
Sole-source contracts inherently carry a higher risk of cost overruns due to the absence of competitive pressure. A long duration (over six years) exacerbates this, increasing exposure to inflation, changing labor costs, and potential scope creep. Furthermore, technology evolves rapidly; by the end of the contract, the 'upgraded' F-16V systems might be less advanced than anticipated, potentially leading to technological obsolescence issues.
How does this foreign military sale contribute to the overall effectiveness and interoperability of allied air forces, and what is the U.S. taxpayer's indirect benefit?
Upgrading allied F-16s to the 'V' standard enhances their combat effectiveness, situational awareness, and interoperability with U.S. and NATO forces. This strengthens collective security and burden-sharing. The U.S. taxpayer benefits indirectly through increased stability in key regions, enhanced military partnerships, and the maintenance of a robust U.S. defense industrial base, which supports domestic jobs and technological leadership.
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
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: $98,000,000
Exercised Options: $92,505,324
Current Obligation: $92,505,324
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-08-26
Current End Date: 2031-08-29
Potential End Date: 2031-08-29 00:00:00
Last Modified: 2026-01-20
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