DoD awards $29.9M for F-16 microelectronics, with Lockheed Martin to integrate advanced IRST system

Contract Overview

Contract Amount: $29,946,693 ($29.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-12-08

End Date: 2027-01-31

Contract Duration: 1,150 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CET 23-320, ANALYZE, DEVELOP AND INTEGRATE AN ADVANCED TECHNOLOGY MICROELECTRONIC PODDED IRST SYSTEM SOLUTION TO ADD CAPABILITY TO THE MICROELECTRONICS-BASED F-16 FIGHTING FALCON.

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to LOCKHEED MARTIN CORPORATION for work described as: CET 23-320, ANALYZE, DEVELOP AND INTEGRATE AN ADVANCED TECHNOLOGY MICROELECTRONIC PODDED IRST SYSTEM SOLUTION TO ADD CAPABILITY TO THE MICROELECTRONICS-BASED F-16 FIGHTING FALCON. Key points: 1. Contract focuses on enhancing F-16 capabilities through advanced microelectronics. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost-plus-fixed-fee contract type carries inherent cost escalation risks. 4. The project duration of nearly 4 years indicates a complex, long-term development effort. 5. This award falls within the broader Defense Microelectronics Activity's mission to modernize critical systems. 6. The specific focus on IRST systems highlights a need for improved situational awareness in fighter jets.

Value Assessment

Rating: fair

The contract value of $29.9 million for the development and integration of an advanced technology microelectronic IRST system for the F-16 is difficult to benchmark without more specific details on the system's complexity and performance requirements. The cost-plus-fixed-fee (CPFF) structure, while allowing for flexibility, can lead to higher final costs compared to fixed-price contracts if not managed diligently. The awarded amount appears reasonable for a specialized defense technology development project of this scope and duration, but a detailed cost breakdown and comparison to similar IRST development efforts would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. This approach generally promotes a wider range of technical solutions and competitive pricing. The specific number of bids received is not provided, but the open competition suggests that the Defense Microelectronics Activity sought the best value from the market. The presence of multiple potential bidders is a positive sign for price discovery and innovation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price and technological solution, fostering a competitive environment that can drive down costs and improve overall value for money.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially allied nations operating the F-16 Fighting Falcon, who will receive enhanced situational awareness capabilities. The services delivered include the analysis, development, and integration of an advanced technology microelectronic Infrared Search and Track (IRST) system. The geographic impact is primarily within the United States, where the development and integration activities will likely take place, with eventual deployment on F-16 aircraft globally. Workforce implications include specialized engineering, microelectronics, and systems integration roles, potentially creating or sustaining high-skilled jobs in the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can lead to cost overruns if not closely monitored.
The complexity of integrating advanced microelectronics into an existing platform like the F-16 presents technical risks.
Long project duration (over 3 years) increases the potential for scope creep and evolving requirements.
Reliance on a single large contractor, Lockheed Martin, may limit future competition or innovation if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Focus on advanced technology aims to significantly improve critical defense capabilities.
The project addresses a specific need for enhanced situational awareness in fighter aircraft.
The Defense Microelectronics Activity's involvement indicates a strategic focus on modernizing defense hardware.

Sector Analysis

The defense microelectronics sector is a critical and highly specialized area within the broader aerospace and defense industry. This contract falls under the engineering services sub-sector, specifically focusing on advanced electronic systems for military platforms. The market for such specialized defense technology is characterized by high barriers to entry due to intellectual property, R&D costs, and stringent security requirements. Comparable spending benchmarks are difficult to establish without detailed system specifications, but significant investments are common for upgrading legacy platforms like the F-16 with cutting-edge sensor and processing capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Lockheed Martin Corporation, the prime contractor, is a large aerospace and defense company. While the prime contractor may engage small businesses for subcontracting, the primary award is not directed towards small businesses. The impact on the small business ecosystem would depend on the subcontracting opportunities generated, which are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, specifically through the Defense Microelectronics Activity (DMEA). Accountability measures are typically embedded within the contract terms, including performance milestones, reporting requirements, and quality assurance provisions. Transparency is facilitated through contract award announcements and public databases like SAM.gov. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-16 Fighting Falcon Modernization Programs
Advanced Sensor Development Programs
Defense Microelectronics Research and Development
Infrared Search and Track (IRST) Systems
Aerospace Engineering Services Contracts

Risk Flags

Cost-plus-fixed-fee contract type
Integration complexity of advanced microelectronics
Long project duration
Potential for evolving requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 million to LOCKHEED MARTIN CORPORATION. CET 23-320, ANALYZE, DEVELOP AND INTEGRATE AN ADVANCED TECHNOLOGY MICROELECTRONIC PODDED IRST SYSTEM SOLUTION TO ADD CAPABILITY TO THE MICROELECTRONICS-BASED F-16 FIGHTING FALCON.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Microelectronics Activity).

What is the total obligated amount?

The obligated amount is $29.9 million.

What is the period of performance?

Start: 2023-12-08. End: 2027-01-31.

What is Lockheed Martin Corporation's track record with similar advanced microelectronic system integrations for fighter aircraft?

Lockheed Martin Corporation has an extensive and well-documented track record in developing and integrating advanced systems for fighter aircraft, including the F-16, F-22, and F-35. Their experience spans avionics, weapons systems, and sensor integration. Specifically, they have been involved in various upgrades for the F-16 fleet over decades, encompassing electronic warfare, radar enhancements, and cockpit modernization. While specific details on their IRST development for the F-16 might be proprietary, their broad expertise in complex system integration and microelectronics positions them as a capable contractor for this project. Past performance evaluations on similar contracts would provide a more granular assessment of their success in managing cost, schedule, and technical performance.

How does the $29.9 million contract value compare to other recent F-16 upgrade or advanced technology integration contracts?

Comparing the $29.9 million value requires context on the scope and complexity of the specific upgrade. F-16 modernization efforts can range significantly in cost, from software updates costing a few million dollars to major structural and avionics overhauls potentially reaching hundreds of millions. This contract for an advanced technology microelectronic IRST system appears to be a significant, but not exceptionally large, investment within the spectrum of F-16 upgrades. It suggests a focused effort on a critical sensor capability rather than a comprehensive platform overhaul. Benchmarking against other IRST development programs or advanced sensor integration projects, even on different platforms, would offer a more relevant comparison point for assessing value.

What are the primary technical risks associated with integrating an advanced microelectronic IRST system into the F-16?

The primary technical risks involve the integration of a new, advanced microelectronic system into the existing F-16 airframe and avionics architecture. This includes challenges related to space, weight, and power (SWaP) constraints within the aircraft. Ensuring electromagnetic compatibility (EMC) with other onboard systems, particularly radar and communication equipment, is crucial. The development of the microelectronic components themselves carries inherent risks related to yield, reliability, and performance under harsh operating conditions. Furthermore, the software development for processing IRST data and integrating it into the pilot's display and tactical picture presents significant complexity. Finally, ensuring the system meets the stringent reliability and maintainability requirements for military aviation is a key risk area.

What is the expected impact of this IRST system on the F-16's operational effectiveness and situational awareness?

The integration of an advanced microelectronic IRST system is expected to significantly enhance the F-16's operational effectiveness and situational awareness, particularly in air-to-air combat scenarios. Unlike radar, IRST systems detect targets based on their heat signatures, making them passive sensors that are difficult to detect or jam. This allows pilots to identify and track potential threats, such as enemy aircraft, at longer ranges and with greater stealth, especially in environments where radar performance might be degraded (e.g., electronic countermeasures, ground clutter). The system can provide targeting data for missile employment or threat warning, complementing the F-16's existing radar capabilities and providing a crucial layer of defense and offensive advantage.

How has spending on F-16 modernization and related advanced technology integration evolved over the past five years?

Spending on F-16 modernization and related advanced technology integration has been substantial over the past five years, driven by the need to keep the aging but capable platform relevant against evolving threats. This includes investments in avionics upgrades, structural enhancements, new sensor systems (like this IRST), and software improvements. While specific aggregate spending figures fluctuate annually based on program priorities and budget allocations, the trend indicates a continued commitment to extending the service life of the F-16 fleet through technological upgrades. Contracts for radar modernization, electronic warfare suites, and cockpit displays represent significant portions of this spending, alongside specialized systems like the one awarded here.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: HQ072715R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $29,946,693

Exercised Options: $29,946,693

Current Obligation: $29,946,693

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $1,090,224

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0001

IDV Type: IDC

Timeline