F-35 Training System Contract Awarded to Lockheed Martin for $95.2M

Contract Overview

Contract Amount: $95,240,338 ($95.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2016-03-11

End Date: 2021-09-30

Contract Duration: 2,029 days

Daily Burn Rate: $46.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DUE TO A CHANGE IN THE PIID NUMBERING SYSTEM BASED ON CAR PREPARATION DATE INSTEAD OF SIGNED DATE, N00019-14-G-0020-0045 IS NO LONGER A VALID CAR NUMBER. THIS CAR RECORDS DATA FOR N00019-14-G-0020-0045: F-35 DISTRIBUTED MISSION TRAINING

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $95.2 million to LOCKHEED MARTIN CORPORATION for work described as: DUE TO A CHANGE IN THE PIID NUMBERING SYSTEM BASED ON CAR PREPARATION DATE INSTEAD OF SIGNED DATE, N00019-14-G-0020-0045 IS NO LONGER A VALID CAR NUMBER. THIS CAR RECORDS DATA FOR N00019-14-G-0020-0045: F-35 DISTRIBUTED MISSION TRAINING Key points: 1. Contract awarded to Lockheed Martin for F-35 training systems. 2. Significant value of $95.2M over its period of performance. 3. Procured via a sole-source, not competed, contract. 4. The sector is Aircraft Manufacturing, with a focus on IT/Training systems.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar training system contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the F-35 training systems.

Public Impact

Ensures continued training capabilities for the F-35 program, critical for pilot readiness. Supports advanced simulation and training technologies essential for modern air combat. Potential for cost inefficiencies due to sole-source award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Long performance period (2016-2021) may not reflect current market prices.

Positive Signals

Supports critical F-35 training infrastructure.
Ensures readiness for a key defense asset.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on training systems for the F-35 fighter jet. Spending in this area is crucial for maintaining pilot proficiency and operational readiness, often involving complex IT and simulation technologies.

Small Business Impact

The data does not indicate any specific subcontracting efforts with small businesses for this contract. As a sole-source award to a large corporation, opportunities for small business participation may be limited unless actively pursued by the prime contractor.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer money. Robust oversight by the Department of the Navy is essential to manage the Cost Plus Fixed Fee structure effectively.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing due to no competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.2 million to LOCKHEED MARTIN CORPORATION. DUE TO A CHANGE IN THE PIID NUMBERING SYSTEM BASED ON CAR PREPARATION DATE INSTEAD OF SIGNED DATE, N00019-14-G-0020-0045 IS NO LONGER A VALID CAR NUMBER. THIS CAR RECORDS DATA FOR N00019-14-G-0020-0045: F-35 DISTRIBUTED MISSION TRAINING

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 Navy).

What is the total obligated amount?

The obligated amount is $95.2 million.

What is the period of performance?

Start: 2016-03-11. End: 2021-09-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of adequate competition. For complex defense systems like the F-35 training infrastructure, it's often argued that only a specific contractor possesses the necessary expertise or integration capabilities, making competition impractical or detrimental to program timelines.

How does the Cost Plus Fixed Fee structure impact the overall cost and risk for the government?

A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it provides the contractor with a guaranteed profit margin, it shifts much of the cost risk to the government. If costs escalate beyond initial estimates, the government pays more, whereas the contractor's fee remains constant, incentivizing them less to control costs.

What is the long-term value proposition of investing in advanced training systems like this for the F-35?

Investing in advanced training systems ensures that pilots and maintenance crews are proficient in operating and maintaining the F-35, a critical national security asset. These systems reduce the need for expensive live flight hours, enhance safety, and allow for the simulation of complex combat scenarios, ultimately improving mission effectiveness and readiness at a potentially lower overall cost than purely flight-based training.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1 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: $98,226,802

Exercised Options: $98,226,802

Current Obligation: $95,240,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0001914G0020

IDV Type: BOA

Timeline