DoD Awards $204.6M F-35 Support Contract to Lockheed Martin, Extending to 2028
Contract Overview
Contract Amount: $204,621,206 ($204.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-08-02
End Date: 2028-06-30
Contract Duration: 2,524 days
Daily Burn Rate: $81.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: F-35 LIGHTNING II FMS SUPPORT CONTRACT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $204.6 million to LOCKHEED MARTIN CORPORATION for work described as: F-35 LIGHTNING II FMS SUPPORT CONTRACT Key points: 1. Significant contract value of $204.6 million for F-35 support. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long-term contract duration (2021-2028) suggests ongoing program needs. 4. Focus on Aircraft Manufacturing sector, specifically F-35 program sustainment.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to potential alternatives.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract may result in taxpayers paying a premium for F-35 support services.
Public Impact
Impacts the operational readiness and sustainment of the F-35 fighter jet fleet. Affects the U.S. military's air superiority capabilities. Potential for long-term financial commitment to a single provider for critical defense assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense asset (F-35)
- Long-term program stability
Sector Analysis
This contract falls within the Defense sector, specifically supporting the F-35 program, a cornerstone of U.S. air power. Spending benchmarks for major defense platforms are typically high, but the lack of competition here makes direct comparison difficult.
Small Business Impact
The data provided does not indicate any specific provisions or set-asides for small businesses in this contract. As a sole-source award to a large prime contractor, direct small business participation may be limited unless subcontracted.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. Robust monitoring by the Department of the Navy is crucial to mitigate risks associated with cost-plus contracts.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price negotiation.
- Cost-plus contract type carries inherent risk of cost overruns.
- Long contract duration may not adapt to evolving needs or technologies.
- Lack of transparency on specific performance metrics and incentives.
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $204.6 million to LOCKHEED MARTIN CORPORATION. F-35 LIGHTNING II FMS SUPPORT 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $204.6 million.
What is the period of performance?
Start: 2021-08-02. End: 2028-06-30.
What is the justification for the sole-source award of this critical F-35 support contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for seamless integration with existing systems that only the incumbent contractor can provide. For the F-35 program, Lockheed Martin's deep involvement in its development and manufacturing likely forms the basis for this decision, aiming to ensure continuity and specialized expertise in sustainment.
What are the potential risks associated with a Cost Plus Incentive Fee (CPIF) contract for long-term support?
CPIF contracts incentivize both the contractor and the government to meet cost and performance targets. However, risks include potential cost overruns if targets are not well-defined or achieved, and the government may end up paying more than anticipated. Effective oversight is crucial to manage the incentive structure and ensure value for money throughout the contract's life.
How does this contract contribute to the overall effectiveness and readiness of the F-35 program?
This contract is vital for the sustainment and operational readiness of the F-35 fleet, ensuring the aircraft are maintained, repaired, and equipped to meet mission requirements. By securing long-term support, the Department of Defense aims to maintain the high availability rates necessary for training, deployment, and combat operations, thereby directly impacting the program's overall effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $262,249,660
Exercised Options: $262,249,660
Current Obligation: $204,621,206
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $21,448,039
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-02
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2025-12-02
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