DoD Awards $18.4M for F/A-18 IRST Program Non-Recurring Engineering to Lockheed Martin
Contract Overview
Contract Amount: $18,390,675 ($18.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-10-20
End Date: 2026-12-31
Contract Duration: 1,533 days
Daily Burn Rate: $12.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18 IRST PROGRAM NON-RECURRING ENGINEERING FOR ROIC REDESIGN
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to LOCKHEED MARTIN CORPORATION for work described as: F/A-18 IRST PROGRAM NON-RECURRING ENGINEERING FOR ROIC REDESIGN Key points: 1. Significant investment in critical aircraft system upgrades. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Cost-plus-fixed-fee contract structure requires careful oversight. 4. Long-term project duration (over 4 years) impacts budget predictability.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed tightly. The awarded amount is for non-recurring engineering, making direct price comparisons difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces to achieve the best possible price and potentially overlooks alternative solutions.
Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for the engineering services, as there was no competitive pressure to drive down costs.
Public Impact
Enhances the combat capabilities of the F/A-18 Super Hornet fleet. Supports the technological advancement of naval aviation platforms. Potential for follow-on production contracts, impacting future defense spending. Ensures continued operational readiness for a key fighter jet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can inflate costs.
- Long project duration increases risk.
- Lack of small business participation noted.
Positive Signals
- Addresses critical capability gap for F/A-18.
- Awarded to a known prime contractor with relevant experience.
- Project aims to improve aircraft performance.
Sector Analysis
The aerospace and defense sector is characterized by high R&D costs and long product development cycles. Spending on aircraft modernization and upgrades is a significant portion of the Department of Defense budget, often involving complex, sole-source contracts due to specialized requirements.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Future subcontracting opportunities may exist, but the prime contract's sole-source nature limits direct small business engagement at this stage.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Navy to monitor costs, ensure efficient execution, and prevent potential overruns. Regular audits and performance reviews are crucial for accountability.
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 competitive pricing.
- Cost-plus contract type poses risk of cost overruns.
- Long project duration increases exposure to changing requirements.
- Lack of transparency in pricing justification.
- Potential for scope creep in engineering tasks.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to LOCKHEED MARTIN CORPORATION. F/A-18 IRST PROGRAM NON-RECURRING ENGINEERING FOR ROIC REDESIGN
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 $18.4 million.
What is the period of performance?
Start: 2022-10-20. End: 2026-12-31.
What specific technical advancements does the IRST redesign aim to achieve for the F/A-18, and how will these directly enhance its operational effectiveness against current and future threats?
The IRST (Infrared Search and Track) system redesign aims to improve the F/A-18's passive detection capabilities, allowing it to identify and track targets without emitting radar signals. This enhances survivability and situational awareness, particularly in contested electronic warfare environments. The improvements are expected to provide a critical advantage against advanced aerial threats, ensuring the platform remains relevant and effective.
Given the sole-source nature of this award, what steps has the Department of Defense taken to ensure the pricing is fair and reasonable, and what mechanisms are in place to control costs throughout th
While sole-source awards limit direct price competition, the DoD typically relies on detailed cost proposals, historical data analysis, and independent cost estimates to validate pricing. For CPFF contracts, stringent oversight, milestone-based payments, and regular audits are employed to monitor expenditures and ensure efficiency. The contracting officer must certify the price is fair and reasonable based on available information.
What is the projected long-term impact of this non-recurring engineering investment on the overall lifecycle cost and sustainment strategy of the F/A-18 fleet?
This non-recurring engineering (NRE) investment is intended to modernize the IRST system, potentially reducing future sustainment costs by incorporating more reliable components and designs. While the initial NRE cost is significant, it aims to enhance the F/A-18's operational lifespan and effectiveness, thereby delaying the need for more expensive platform replacements and optimizing the overall lifecycle cost strategy.
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
Solicitation ID: N0001922R0938
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $18,390,675
Exercised Options: $18,390,675
Current Obligation: $18,390,675
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,138,979
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001919G0029
IDV Type: BOA
Timeline
Start Date: 2022-10-20
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-04
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