DoD Awards $7.19 Billion for F-35 LRIP Lot 6, Sole-Sourced to Lockheed Martin
Contract Overview
Contract Amount: $7,186,135,705 ($7.2B)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-08-08
End Date: 2023-05-31
Contract Duration: 4,314 days
Daily Burn Rate: $1.7M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: F-35 LIGHTNING II JOINT STRIKE FIGHTER (JSF) LOW RATE INITIAL PRODUCTION (LRIP) LOT 6 ADVANCE ACQUISITION CONTRACT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $7.19 billion to LOCKHEED MARTIN CORPORATION for work described as: F-35 LIGHTNING II JOINT STRIKE FIGHTER (JSF) LOW RATE INITIAL PRODUCTION (LRIP) LOT 6 ADVANCE ACQUISITION CONTRACT Key points: 1. Significant investment in advanced fighter aircraft production. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long-term program with substantial taxpayer exposure. 4. High-value contract within the defense manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $7.19 billion for LRIP Lot 6 is substantial. Without competitive bidding, it's difficult to benchmark pricing against alternatives, raising questions about value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this large contract means taxpayers may be paying a premium for the F-35 aircraft.
Public Impact
Ensures continued production of a key strategic asset for the U.S. and allies. Supports jobs in the aerospace and defense industry. Potential for long-term sustainment and upgrade costs beyond this acquisition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long-term program risk
- Sole-source award
Positive Signals
- Continued production of critical defense capability
- Potential for technological advancement
Sector Analysis
This contract falls within the Aircraft Manufacturing sub-sector of the broader Defense industry. Spending benchmarks for major defense platforms are typically in the billions, reflecting the complexity and cost of development and production.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large sole-source awards often bypass small business participation unless subcontracted by the prime.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA) and program executive offices. However, the sole-source nature limits the effectiveness of competitive oversight in driving down costs.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- High total contract value represents significant financial commitment.
- Long program duration (2011-2023) may mask cost overruns.
- Potential for cost growth in subsequent production lots.
- Dependence on a single supplier for a critical defense asset.
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.19 billion to LOCKHEED MARTIN CORPORATION. F-35 LIGHTNING II JOINT STRIKE FIGHTER (JSF) LOW RATE INITIAL PRODUCTION (LRIP) LOT 6 ADVANCE ACQUISITION CONTRACT
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $7.19 billion.
What is the period of performance?
Start: 2011-08-08. End: 2023-05-31.
What is the historical cost performance of previous F-35 LRIP lots, and how does Lot 6 compare?
Historical cost data for previous F-35 LRIP lots would be crucial for assessing the value of Lot 6. Without this comparative analysis, it's challenging to determine if costs are trending up or down, or if efficiencies are being realized. The lack of competition for Lot 6 further complicates a direct cost-performance evaluation against potential alternatives.
What are the specific risks associated with the sole-source nature of this contract regarding future pricing and innovation?
The primary risk of a sole-source contract is the absence of competitive pressure, which can lead to inflated prices and reduced incentives for innovation. Lockheed Martin may have less motivation to reduce costs or introduce significant technological advancements if there are no competing firms vying for the contract. This can result in higher long-term program costs for taxpayers.
How effective is the current oversight mechanism in ensuring the government receives the best possible value given the non-competitive award?
While agencies like DCMA provide oversight, its effectiveness in ensuring best value is diminished in sole-source situations. Oversight typically focuses on contract compliance, quality, and schedule adherence rather than aggressive price negotiation. True best value is best achieved through robust competition, which is absent here, limiting the impact of oversight on cost savings.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: LOCKHEED BLVD, 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: $129,475,215,242
Exercised Options: $109,368,570,206
Current Obligation: $7,186,135,705
Actual Outlays: $19,104,248
Subaward Activity
Number of Subawards: 590
Total Subaward Amount: $1,223,269,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-08-08
Current End Date: 2023-05-31
Potential End Date: 2023-05-31 00:00:00
Last Modified: 2025-10-20
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)