DoD awards $64.7M for F-16 Joint Mission Planning System software development to Lockheed Martin

Contract Overview

Contract Amount: $64,675,904 ($64.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-01-26

End Date: 2027-05-31

Contract Duration: 2,316 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FOREIGN MILITARY SALES F16 JOINT MISSION PLANNING SYSTEM (JMPS) UNIQUE PLANNING COMPONENT (UPC)/ MISSION PLANNING ENVIRONMENT (MPE)SOFTWARE DEVELOPMENT

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $64.7 million to LOCKHEED MARTIN CORPORATION for work described as: FOREIGN MILITARY SALES F16 JOINT MISSION PLANNING SYSTEM (JMPS) UNIQUE PLANNING COMPONENT (UPC)/ MISSION PLANNING ENVIRONMENT (MPE)SOFTWARE DEVELOPMENT Key points: 1. The contract is for software development related to the F-16 fighter jet's mission planning system. 2. Lockheed Martin Corporation is the sole awardee, indicating a potential lack of competition. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The sector is IT services, specifically custom computer programming.

Value Assessment

Rating: fair

The contract value of $64.7 million for software development over approximately 6 years appears reasonable for a specialized military system. Benchmarking is difficult without more specific details on the scope of work and comparable systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was considered, only specific sources were eligible. This limited competition may impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for the development of critical software for military aircraft, which is a necessary but potentially costly expenditure.

Public Impact

Enhances F-16 mission planning capabilities, potentially improving operational effectiveness. Supports the sustainment and modernization of a key military aircraft platform. Funds advanced software development within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises concerns about cost efficiency.
  • Sole awardee to Lockheed Martin may indicate a lack of market alternatives or proprietary technology.
  • Long contract duration (over 6 years) increases exposure to potential cost overruns or scope creep.

Positive Signals

  • Firm Fixed Price contract shifts cost risk to the contractor.
  • Supports a critical defense platform (F-16).

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming, supporting defense applications. Spending benchmarks for similar specialized military software development are highly variable and depend on system complexity and security requirements.

Small Business Impact

The contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large contract.

Oversight & Accountability

The Department of the Air Force is the awarding agency. Oversight will be crucial to ensure the contractor meets performance requirements and stays within budget, especially given the long duration and limited competition.

Related Government Programs

  • Custom Computer Programming Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition
  • Sole awardee
  • Long contract duration
  • Potential for vendor lock-in
  • Lack of small business participation

Tags

custom-computer-programming-services, department-of-defense, ny, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.7 million to LOCKHEED MARTIN CORPORATION. FOREIGN MILITARY SALES F16 JOINT MISSION PLANNING SYSTEM (JMPS) UNIQUE PLANNING COMPONENT (UPC)/ MISSION PLANNING ENVIRONMENT (MPE)SOFTWARE DEVELOPMENT

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 $64.7 million.

What is the period of performance?

Start: 2021-01-26. End: 2027-05-31.

What specific factors led to the exclusion of other sources, and were these justifications robust?

The justification for excluding other sources is critical. If based on proprietary technology, unique capabilities, or essential integration with existing systems, it might be valid. However, a thorough review is needed to ensure this wasn't a missed opportunity to foster broader competition and potentially achieve better pricing for taxpayers.

How will the government ensure cost control and prevent scope creep over the 6-year contract period?

Effective oversight mechanisms, including regular performance reviews, milestone tracking, and change control processes, are essential. Clear performance metrics and defined deliverables will help manage scope. The firm-fixed-price nature provides some cost control, but vigilant management is still required to prevent unforeseen escalations.

What is the long-term strategy for this software, and are there plans for future competition or open-source adoption?

Understanding the long-term roadmap for the JMPS software is important. If this is a foundational system, future competition should be explored. If the technology is proprietary and deeply integrated, the government might consider strategies to reduce future reliance or develop in-house capabilities to mitigate long-term vendor lock-in and ensure sustained cost-effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1801 STATE RT 17 C, OWEGO, NY, 13827

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: $95,920,216

Exercised Options: $64,825,904

Current Obligation: $64,675,904

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,803,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-01-26

Current End Date: 2027-05-31

Potential End Date: 2027-05-31 00:00:00

Last Modified: 2026-01-16

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