DoD Awards $12.5M for 5th Gen Fighter ICAS Integration to Lockheed Martin
Contract Overview
Contract Amount: $12,515,972 ($12.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-04
End Date: 2026-12-31
Contract Duration: 2,522 days
Daily Burn Rate: $5.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FIFTH GENERATION FIGHTER ICAS INTEGRATION
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $12.5 million to LOCKHEED MARTIN CORPORATION for work described as: FIFTH GENERATION FIGHTER ICAS INTEGRATION Key points: 1. Significant investment in advanced fighter capabilities. 2. Sole awardee is Lockheed Martin, a major defense contractor. 3. Research and Development focus within a critical defense sector. 4. Potential for long-term sustainment and upgrade contracts.
Value Assessment
Rating: questionable
The contract is for Research and Development, making direct pricing comparisons difficult. The 'COST PLUS FIXED FEE' structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D efforts for advanced systems is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open, the award went to a single entity, Lockheed Martin. The impact on price discovery is unclear, as it's possible no other viable competitors emerged or were incentivized to bid.
Taxpayer Impact: Taxpayer funds are allocated to advanced defense research, aiming for technological superiority. The cost-effectiveness will depend on the successful integration and future operational benefits of the ICAS.
Public Impact
Enhances the capabilities of advanced fighter aircraft. Supports technological advancement in military aviation. Contributes to national defense readiness. Potential for job creation in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contracts can inflate final prices.
- Limited visibility into competitive landscape for this specific R&D.
- Long contract duration increases exposure to economic fluctuations.
Positive Signals
- Investment in critical defense technology.
- Potential for significant technological leap.
- Supports a key US defense contractor.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically for advanced aerospace systems. Defense R&D spending is a significant portion of the federal budget, with a focus on maintaining technological advantage.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large business. There is no explicit information on subcontracting to small businesses within this award notice, which is common for highly specialized R&D efforts.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to manage the 'COST PLUS FIXED FEE' structure, ensuring efficient use of funds and adherence to research objectives throughout the contract's duration.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Overruns
- Technological Obsolescence
- Integration Challenges
- Limited Competition Visibility
- Long-term Programmatic Risk
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to LOCKHEED MARTIN CORPORATION. FIFTH GENERATION FIGHTER ICAS INTEGRATION
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 $12.5 million.
What is the period of performance?
Start: 2020-02-04. End: 2026-12-31.
What is the specific technological advancement expected from this ICAS integration, and how does it justify the investment?
The Integrated Core Avionics System (ICAS) integration is expected to modernize and enhance the computational capabilities of fifth-generation fighters. This could lead to improved sensor fusion, faster data processing, enhanced electronic warfare capabilities, and better network-centric operations, ultimately increasing the aircraft's combat effectiveness and survivability.
Given the 'COST PLUS FIXED FEE' structure, what mechanisms are in place to mitigate potential cost overruns and ensure value for money?
Mitigation strategies for cost-plus contracts typically involve stringent oversight, detailed performance metrics, and clear milestones. The fixed fee component provides some incentive for the contractor to control costs to maximize their profit. Regular audits and reviews by the Department of Defense are essential to track expenditures and ensure alignment with the research objectives.
How will the success of this R&D integration be measured, and what are the key performance indicators for the contractor?
Success will likely be measured against predefined technical performance specifications and integration milestones outlined in the contract. Key performance indicators could include the successful demonstration of new functionalities, system stability, interoperability with existing platforms, and adherence to development timelines. Formal testing and validation phases will be critical.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA865019R2507
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1 LOCKHEED BLVD BLDG 10, FORT WORTH, TX, 76108
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: $12,575,520
Exercised Options: $12,575,520
Current Obligation: $12,515,972
Actual Outlays: $56,262
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $713,627
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865017D2718
IDV Type: IDC
Timeline
Start Date: 2020-02-04
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-09-25
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