DoD awards $22.6M F-16 engineering services contract to Lockheed Martin, raising competition concerns
Contract Overview
Contract Amount: $22,600,293 ($22.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-11-14
End Date: 2014-11-13
Contract Duration: 1,095 days
Daily Burn Rate: $20.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: ACAT III, F-16 PROGRAM, MISAWA AND LUKE INSTALLS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to LOCKHEED MARTIN CORPORATION for work described as: ACAT III, F-16 PROGRAM, MISAWA AND LUKE INSTALLS Key points: 1. Significant award value of $22.6 million for engineering services. 2. Sole-source award to Lockheed Martin limits competitive pricing. 3. Potential risk due to lack of competition and time-and-materials contract type. 4. Engineering services sector is critical for defense readiness.
Value Assessment
Rating: questionable
The contract was awarded on a time-and-materials basis, which can lead to cost overruns without strong oversight. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. The lack of competition likely resulted in a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of a competitive bidding process for these critical engineering services.
Public Impact
F-16 program modernization impacts national defense capabilities. Taxpayer funds allocated for critical defense infrastructure. Potential for cost escalation due to contract type and sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and materials contract
- Lack of competition
Positive Signals
- Awarded to incumbent contractor
- Supports critical defense program
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the F-16 fighter jet program. Spending in this area is crucial for maintaining and upgrading military aircraft, with benchmarks varying widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The award was a delivery order under a larger contract. Oversight would typically involve monitoring expenditures against the time-and-materials ceiling and ensuring work aligns with program requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition.
- Time and materials contract type poses cost risk.
- Potential for contractor inefficiency without competitive pressure.
- Limited transparency on specific services rendered.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to LOCKHEED MARTIN CORPORATION. ACAT III, F-16 PROGRAM, MISAWA AND LUKE INSTALLS
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 Air Force).
What is the total obligated amount?
The obligated amount is $22.6 million.
What is the period of performance?
Start: 2011-11-14. End: 2014-11-13.
What was the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award is not provided in the data. Typically, such awards are made when only one vendor possesses the necessary specialized knowledge, technology, or capability. However, the Air Force should have explored all viable options to ensure fair pricing and maximize competition where possible.
How does the time-and-materials pricing compare to fixed-price or cost-plus-incentive-fee contracts for similar engineering services?
Time-and-materials contracts carry inherent risks of cost overruns as they do not set a firm price ceiling. Compared to fixed-price contracts, they offer less cost certainty for the government. While potentially more flexible, they require robust oversight to prevent inflated costs, unlike cost-plus contracts which can incentivize efficiency through shared savings or penalties.
What specific engineering services were provided, and how do they contribute to the F-16 program's overall effectiveness?
The data specifies 'Engineering Services' but lacks detail on the exact nature of the work performed. These services likely encompass design, analysis, testing, or modification support for the F-16 aircraft. Their effectiveness is directly tied to ensuring the continued operational readiness and technological relevance of a key component of the Air Force's combat fleet.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
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
Financial Breakdown
Contract Ceiling: $22,600,293
Exercised Options: $22,600,293
Current Obligation: $22,600,293
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F4262001D0058
IDV Type: IDC
Timeline
Start Date: 2011-11-14
Current End Date: 2014-11-13
Potential End Date: 2014-11-13 00:00:00
Last Modified: 2019-02-15
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