DoD Awards $438.6M for F-35 HMDS Lot 15-16 to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $438,640,305 ($438.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-08
End Date: 2028-03-31
Contract Duration: 1,666 days
Daily Burn Rate: $263.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER FUNDS THE ACQUISITION OF F-35 LOT 15-16 HMDS FOR ALL CUSTOMERS.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $438.6 million to LOCKHEED MARTIN CORPORATION for work described as: THIS DELIVERY ORDER FUNDS THE ACQUISITION OF F-35 LOT 15-16 HMDS FOR ALL CUSTOMERS. Key points: 1. Significant investment in critical F-35 components. 2. Sole-source award to Lockheed Martin raises cost concerns. 3. Long-term contract duration (2028) requires ongoing oversight. 4. Limited visibility into pricing compared to potential alternatives.
Value Assessment
Rating: questionable
The $438.6 million award for F-35 HMDS Lot 15-16 lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bidding, it's difficult to assess if this price represents fair market value for the components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, directly awarded to Lockheed Martin Corporation. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying a premium for F-35 components.
Public Impact
Ensures continued supply of critical components for the F-35 fighter jet program. Supports a major defense contractor and its supply chain. Potential for cost overruns due to sole-source award impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential for F-35 program
- Supports key defense manufacturing
Sector Analysis
This award falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication in the data that small businesses were involved in this specific delivery order, suggesting a lack of subcontracting opportunities for SMBs.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure fair pricing and contract compliance. Transparency in cost reporting and performance metrics will be crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Long-term commitment without market validation
- Limited transparency on cost drivers
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 $438.6 million to LOCKHEED MARTIN CORPORATION. THIS DELIVERY ORDER FUNDS THE ACQUISITION OF F-35 LOT 15-16 HMDS FOR ALL CUSTOMERS.
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 $438.6 million.
What is the period of performance?
Start: 2023-09-08. End: 2028-03-31.
What is the historical pricing trend for these HMDS components from Lockheed Martin, and how does this award compare?
Without access to historical pricing data for these specific F-35 HMDS components from Lockheed Martin, a direct comparison is not possible. However, sole-source contracts often carry a higher risk of price escalation over time compared to competitively awarded contracts. Further analysis would require access to prior contract awards and negotiation details.
What are the specific risks associated with a sole-source award for critical F-35 components?
The primary risks of a sole-source award include inflated pricing due to lack of competition, potential for reduced innovation, and vendor lock-in. For critical components like the HMDS, this also poses a supply chain risk if the sole provider faces production issues or financial instability, potentially impacting F-35 readiness.
How effective is the Department of Defense in ensuring value for money on sole-source defense contracts?
The effectiveness varies significantly. While DoD has mechanisms for cost analysis and negotiation on sole-source contracts, the absence of competitive pressure inherently makes achieving optimal value more challenging. Robust internal oversight, independent cost estimating, and strong negotiation teams are critical for maximizing taxpayer value in these situations.
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
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: $438,640,305
Exercised Options: $438,640,305
Current Obligation: $438,640,305
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: 2023-09-08
Current End Date: 2028-03-31
Potential End Date: 2028-03-31 00:00:00
Last Modified: 2025-04-09
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