DoD Awards $185.6M for F-35 Landing Gear Final Analyses to Lockheed Martin

Contract Overview

Contract Amount: $18,561,887 ($18.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-06-24

End Date: 2030-03-31

Contract Duration: 2,106 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F-35A/B/C LANDING GEAR FINAL ANALYSES

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76108

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to LOCKHEED MARTIN CORPORATION for work described as: F-35A/B/C LANDING GEAR FINAL ANALYSES Key points: 1. Significant contract value for critical aircraft component. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Cost-plus-fixed-fee structure may incentivize higher costs. 4. Long contract duration suggests ongoing program needs.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs compared to fixed-price contracts if not managed tightly. The benchmark for similar analyses is difficult to establish without more detailed scope information, but the $185.6M value for final analyses is substantial.

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 the government as there is no competitive pressure to reduce bids.

Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying more than necessary for these critical landing gear analyses.

Public Impact

Ensures continued operational readiness of the F-35 fleet. Supports advanced aircraft manufacturing and sustainment. Potential for cost overruns due to contract type and sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost-plus-fixed-fee contract type
  • Lack of competition

Positive Signals

  • Critical component for advanced fighter jet
  • Long-term program support

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting the F-35 program. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant government investment.

Small Business Impact

This contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The Department of the Navy is the awarding agency. Oversight will be crucial to manage the CPFF contract and ensure cost efficiencies, especially given the sole-source nature of the award.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award limits competition.
  • Cost-plus-fixed-fee contract type may inflate costs.
  • Lack of transparency in specific analytical scope.
  • Long contract duration increases exposure to cost changes.

Tags

aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to LOCKHEED MARTIN CORPORATION. F-35A/B/C LANDING GEAR FINAL ANALYSES

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 $18.6 million.

What is the period of performance?

Start: 2024-06-24. End: 2030-03-31.

What specific analyses are included in this $185.6M award, and how do they contribute to the F-35's long-term viability?

The contract covers 'F-35A/B/C LANDING GEAR FINAL ANALYSES.' These analyses likely pertain to structural integrity, performance under various conditions, maintenance schedules, and potential upgrades or modifications. Their contribution is vital for ensuring the safety, reliability, and operational readiness of the F-35 fleet throughout its extended service life, addressing any emerging issues and validating design specifications.

Given the sole-source nature and CPFF structure, what are the primary risks to cost control and taxpayer value?

The primary risks stem from the lack of competitive bidding, which removes market pressure to offer the lowest price. The Cost Plus Fixed Fee structure, while covering costs, can incentivize the contractor to incur higher expenses to achieve the fixed fee, potentially leading to cost overruns. Without strong oversight and detailed performance metrics, taxpayers are exposed to paying more than necessary for the analyses.

How will the Department of the Navy ensure effective oversight and accountability for this contract to maximize value?

Effective oversight will require rigorous monitoring of contractor performance against defined milestones and deliverables. The Navy must establish clear cost-tracking mechanisms, conduct regular audits, and actively manage the scope of work to prevent creep. Benchmarking against similar, albeit potentially less complex, analyses and maintaining open communication channels with the contractor are also key to ensuring accountability and maximizing taxpayer value.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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, 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: $31,925,992

Exercised Options: $31,925,992

Current Obligation: $18,561,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001924G0010

IDV Type: BOA

Timeline

Start Date: 2024-06-24

Current End Date: 2030-03-31

Potential End Date: 2030-03-31 00:00:00

Last Modified: 2025-12-18

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