DoD Awards $175.8M F-35 Mission Systems Test Capability Contract to Lockheed Martin
Contract Overview
Contract Amount: $17,578,308 ($17.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2026-02-13
End Date: 2026-12-31
Contract Duration: 321 days
Daily Burn Rate: $54.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-35 LIGHTNING II MISSION SYSTEMS TEST CAPABILITY (MSTC) PROJECT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.6 million to LOCKHEED MARTIN CORPORATION for work described as: F-35 LIGHTNING II MISSION SYSTEMS TEST CAPABILITY (MSTC) PROJECT Key points: 1. The contract focuses on critical mission systems testing for the F-35 program. 2. Lockheed Martin, the sole prime contractor for the F-35, is the awardee. 3. The award is a delivery order under an existing contract, indicating a continuation of services. 4. The sector is dominated by a few large aerospace and defense contractors. 5. Potential risks include vendor lock-in and the complexity of integrated systems testing.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar complex testing and integration contracts is difficult due to the unique nature of the F-35 program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to Lockheed Martin's sole-source position as the prime contractor for the F-35. This limits price discovery and competitive pressure, potentially leading to higher costs.
Taxpayer Impact: Taxpayer funds are committed without competitive bidding, increasing the risk of paying a premium for the required services.
Public Impact
Ensures continued operational readiness and development of the F-35's advanced mission systems. Supports the sustainment and upgrade lifecycle of one of the U.S. military's most advanced fighter jets. Impacts the technological superiority and combat effectiveness of the U.S. Air Force, Navy, and Marine Corps. Contributes to the overall cost and long-term viability of the F-35 program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost risk.
- High program value and complexity.
Positive Signals
- Supports critical defense capability.
- Awarded to incumbent prime contractor with established expertise.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and support. Spending in this sector is characterized by long-term, high-value programs with significant R&D investment and limited competition due to specialized capabilities.
Small Business Impact
As a sole-source award to a large prime contractor, there is no direct analysis of small business participation in this specific contract action. Subcontracting opportunities for small businesses would depend on Lockheed Martin's internal procurement practices.
Oversight & Accountability
The Department of the Navy, as the procuring agency, is responsible for oversight. Given the sole-source nature and cost-plus fee structure, robust oversight is crucial to manage costs and ensure performance standards are met.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency in pricing
- Dependency on a single contractor
Tags
aircraft-manufacturing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.6 million to LOCKHEED MARTIN CORPORATION. F-35 LIGHTNING II MISSION SYSTEMS TEST CAPABILITY (MSTC) PROJECT
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 $17.6 million.
What is the period of performance?
Start: 2026-02-13. End: 2026-12-31.
What is the projected return on investment for this specific mission systems test capability enhancement?
The return on investment is primarily measured in enhanced F-35 operational effectiveness and reduced future sustainment costs through early identification of system flaws. Quantifying a direct financial ROI is challenging given the strategic defense nature of the investment, but it is critical for maintaining air superiority and mission success.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this project?
The main risks with a Cost Plus Fixed Fee (CPFF) contract are potential cost overruns and reduced contractor incentive to control expenses. The fixed fee provides some certainty, but the government bears the risk of actual costs exceeding estimates. Effective oversight is essential to mitigate these risks.
How does this contract contribute to the overall long-term cost-effectiveness of the F-35 program?
By ensuring robust testing of mission systems, this contract aims to identify and rectify potential issues early in the development and sustainment cycle. This proactive approach can prevent more costly retrofits or operational failures later, thereby contributing to the program's long-term cost-effectiveness and reliability.
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 FIXED FEE (U)
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: $17,578,308
Exercised Options: $17,578,308
Current Obligation: $17,578,308
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0008
IDV Type: BOA
Timeline
Start Date: 2026-02-13
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-09-26
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