USAF F-35A AME Contract Awarded to Lockheed Martin for $530M, Lacking Competition
Contract Overview
Contract Amount: $530,212,325 ($530.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-01-22
End Date: 2024-12-31
Contract Duration: 2,170 days
Daily Burn Rate: $244.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: USAF F-35A AME
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $530.2 million to LOCKHEED MARTIN CORPORATION for work described as: USAF F-35A AME Key points: 1. Significant contract value of $530M for aircraft maintenance equipment. 2. Sole-source award to Lockheed Martin, indicating a lack of competitive bidding. 3. Potential risk associated with single-source procurement and price escalation. 4. Spending falls within the broader 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $530M is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal. The lack of competition raises concerns about potential overpricing compared to what could be achieved through a bidding process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may lead to higher costs for the government as there is no competitive pressure to offer the best price.
Taxpayer Impact: The absence of competition in this large contract could result in taxpayers paying more than necessary for F-35A AME.
Public Impact
Impacts the operational readiness and maintenance capabilities of the USAF F-35A fleet. Directly benefits Lockheed Martin, the sole awarded contractor. Raises questions about the government's procurement strategy for critical defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense asset maintenance
- Long-term contract duration
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining the operational readiness of military aviation assets. Benchmarks for similar sole-source contracts are difficult to establish without competitive data.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, suggesting limited opportunities for SMBs in this particular procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Accountability for the justification of the sole-source decision and the final price paid is essential.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for price inflation
- Dependency on a single supplier
- Limited transparency in pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $530.2 million to LOCKHEED MARTIN CORPORATION. USAF F-35A AME
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 $530.2 million.
What is the period of performance?
Start: 2019-01-22. End: 2024-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of viable alternatives. To ensure fair and reasonable pricing, the contracting agency would usually conduct a price analysis based on historical data, cost breakdowns, or comparisons to similar items, even without direct competition.
What are the long-term risks associated with relying on a single supplier for critical F-35A maintenance equipment?
Long-term risks include potential price gouging, supply chain vulnerabilities if the sole supplier faces disruptions, and a lack of incentive for the supplier to innovate or improve efficiency. This dependency can also limit the government's negotiating power in future contract renewals or modifications.
How does this spending contribute to the overall effectiveness and readiness of the F-35A program?
This spending is critical for ensuring the availability and maintainability of the F-35A fleet. Adequate and timely provision of AME directly supports flight operations, reduces downtime for aircraft maintenance, and ultimately contributes to the overall combat readiness and effectiveness of this advanced fighter jet program.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $530,212,325
Exercised Options: $530,212,325
Current Obligation: $530,212,325
Subaward Activity
Number of Subawards: 109
Total Subaward Amount: $42,541,798
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919D0015
IDV Type: IDC
Timeline
Start Date: 2019-01-22
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2023-08-01
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