USAF awards $395M for F-35A AME, with Lockheed Martin as sole provider
Contract Overview
Contract Amount: $394,689,797 ($394.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-05-29
End Date: 2024-12-31
Contract Duration: 1,677 days
Daily Burn Rate: $235.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
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 $394.7 million to LOCKHEED MARTIN CORPORATION for work described as: USAF F-35A AME Key points: 1. Significant contract value of $394.7M for F-35A AME. 2. Lockheed Martin is the sole provider, raising competition concerns. 3. Risk of price escalation due to lack of competition. 4. Spending falls within the Defense sector, specifically aircraft parts.
Value Assessment
Rating: questionable
Pricing is difficult to assess without competitive benchmarks. As a sole-source award, there's a risk of inflated costs compared to a competitive environment.
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 the government.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially resulting in a less efficient use of resources.
Public Impact
Ensures continued support and availability of critical F-35A aircraft components. Supports a major defense contractor and its supply chain. Potential for higher costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Supports critical defense asset
- Long-term contract duration
Sector Analysis
This contract for F-35A AME falls under the Defense sector, specifically within the manufacturing of aircraft parts. Spending in this area is often characterized by high R&D costs and specialized production, with sole-source awards being not uncommon for proprietary systems.
Small Business Impact
No indication of small business participation is provided in the data. Sole-source contracts often bypass opportunities for small businesses to compete.
Oversight & Accountability
The contract is awarded by the Department of Defense (Navy acting on behalf of USAF). Oversight would typically involve program management offices ensuring delivery and quality, but the lack of competition limits oversight on pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in cost justification.
- Dependency on a single contractor.
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 $394.7 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 $394.7 million.
What is the period of performance?
Start: 2020-05-29. End: 2024-12-31.
What is the justification for this sole-source award, and have alternatives been explored?
The justification for a sole-source award typically involves proprietary technology, unique capabilities, or the absence of viable alternatives. Without further details, it's unclear if the government has thoroughly explored options or if Lockheed Martin's F-35A AME is truly the only available solution. This lack of competition raises concerns about potential price gouging and inefficient use of taxpayer funds.
How does the per-unit cost of these F-35A AME components compare to similar parts or previous contracts?
Benchmarking the per-unit cost is challenging due to the sole-source nature of this award. Without competitive bids, it's difficult to establish a fair market price. Historical data from previous contracts or comparisons with similar, albeit not identical, aircraft components would be necessary to identify potential cost inefficiencies or overpricing.
What is the long-term strategy to introduce competition or mitigate risks associated with this sole-source arrangement?
The long-term strategy should focus on fostering competition where feasible. This could involve encouraging the development of alternative suppliers, investing in reverse engineering efforts, or negotiating more favorable terms in future sole-source extensions. Proactive measures are needed to ensure cost-effectiveness and reduce reliance on a single provider for critical defense components.
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: $394,689,797
Exercised Options: $394,689,797
Current Obligation: $394,689,797
Subaward Activity
Number of Subawards: 248
Total Subaward Amount: $276,210,026
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: 2020-05-29
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2023-06-22
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