DoD Awards $206M F/A-18 IRST System to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $205,877,101 ($205.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-06-30
End Date: 2026-10-30
Contract Duration: 1,583 days
Daily Burn Rate: $130.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F/A-18 IRST LRIP 6 BUY
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $205.9 million to LOCKHEED MARTIN CORPORATION for work described as: F/A-18 IRST LRIP 6 BUY Key points: 1. Significant contract value of $205.8M for F/A-18 Infrared Search and Track (IRST) system. 2. Sole-source award to Lockheed Martin raises concerns about competitive pricing. 3. Risk of inflated costs due to lack of competitive bidding. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $205.8M for the F/A-18 IRST system is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar advanced sensor systems or previous iterations.
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 as there is no market pressure to reduce the price.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the F/A-18 IRST system, as the government did not leverage market forces to secure the best possible price.
Public Impact
Enhances F/A-18 fighter jet capabilities with advanced IRST technology. Supports naval aviation readiness and technological superiority. Potential for follow-on contracts and sustainment services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Critical technology for fighter jets
- Supports national defense objectives
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining and upgrading military aviation fleets, with benchmarks often driven by technological complexity and defense priorities.
Small Business Impact
The contract was awarded directly to Lockheed Martin Corporation and does not indicate any subcontracting to small businesses. Further investigation would be needed to determine if small businesses are involved in the supply chain.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight will be critical to ensure the effective use of funds and the timely delivery of the IRST system, especially given the sole-source nature of the award.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to no competition.
- Limited transparency on pricing justification.
- Dependence on a single supplier.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $205.9 million to LOCKHEED MARTIN CORPORATION. F/A-18 IRST LRIP 6 BUY
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 $205.9 million.
What is the period of performance?
Start: 2022-06-30. End: 2026-10-30.
What is the justification for the sole-source award of the F/A-18 IRST system?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent need where only one source can fulfill the requirement. Without specific documentation, it's presumed the Navy determined Lockheed Martin was the only viable provider for this specific IRST system integration with the F/A-18 platform.
What are the potential risks associated with a sole-source contract for advanced defense systems?
Sole-source contracts carry risks of higher costs due to the absence of competitive pressure, potential for reduced innovation if the contractor faces no market alternatives, and a greater reliance on the single supplier's performance and financial stability. This can lead to budget overruns and delays if not managed meticulously.
How will the effectiveness of the IRST system be measured post-delivery?
Effectiveness will likely be measured through rigorous testing and evaluation (T&E) protocols defined in the contract. This includes performance metrics related to detection range, accuracy, target identification, and integration with the F/A-18's existing systems. Operational deployment feedback from pilots and mission success rates will also be key indicators.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001921R0016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE RT 17 C, OWEGO, NY, 13827
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: $205,877,101
Exercised Options: $205,877,101
Current Obligation: $205,877,101
Subaward Activity
Number of Subawards: 180
Total Subaward Amount: $87,938,856
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0029
IDV Type: BOA
Timeline
Start Date: 2022-06-30
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 00:00:00
Last Modified: 2025-12-17
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