DoD's $180M F-16 Radar Modernization Program Awarded to Lockheed Martin Faces Competition Concerns
Contract Overview
Contract Amount: $179,674,895 ($179.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-12-20
End Date: 2019-04-30
Contract Duration: 2,322 days
Daily Burn Rate: $77.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-16 RADAR MODERNIZATION PROGRAM (RMP)
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $179.7 million to LOCKHEED MARTIN CORPORATION for work described as: F-16 RADAR MODERNIZATION PROGRAM (RMP) Key points: 1. Significant investment in critical aircraft modernization. 2. Sole-source award to incumbent raises competition questions. 3. Potential for cost overruns given cost-plus contract type. 4. Engineering services sector sees substantial defense spending.
Value Assessment
Rating: questionable
The $179.7 million awarded for the F-16 Radar Modernization Program is a significant sum. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar modernization efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive bidding, potentially funding a less efficient price.
Public Impact
Modernization of F-16 fighter jets enhances national defense capabilities. The program impacts the readiness and technological edge of the Air Force. Investment in aerospace technology supports high-skilled engineering jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
Positive Signals
- Critical defense modernization
- Supports existing fleet capabilities
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense aerospace. Spending benchmarks in this area are highly variable, but large sole-source modernization programs often represent significant investments.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Lockheed Martin is a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
Oversight is crucial for cost-plus contracts to ensure funds are used efficiently and effectively. The Department of the Air Force is responsible for monitoring this program's progress and expenditures.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type increases government cost risk
- Potential for scope creep and cost overruns
- Sole-source award may not reflect best value
Tags
engineering-services, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $179.7 million to LOCKHEED MARTIN CORPORATION. F-16 RADAR MODERNIZATION PROGRAM (RMP)
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 $179.7 million.
What is the period of performance?
Start: 2012-12-20. End: 2019-04-30.
What is the estimated cost savings that could have been achieved through a competitive bidding process for this radar modernization?
Quantifying exact savings from a non-competed contract is challenging. However, competitive processes typically yield savings ranging from 10% to 30% or more, depending on the complexity and market dynamics. Without competition, the government relies on contractor good faith and internal oversight to control costs, which is inherently less effective than market forces.
What are the specific risks associated with a cost-plus fixed fee contract for a complex program like radar modernization?
Cost-plus contracts, especially fixed fee, shift cost risk to the government. The contractor is reimbursed for allowable costs plus a predetermined fee. Risks include potential for cost overruns if the contractor's cost estimation is poor or if unforeseen technical challenges arise. The fixed fee provides less incentive for the contractor to control costs compared to fixed-price contracts.
How does this modernization program contribute to the overall effectiveness and longevity of the F-16 fleet?
Modernizing the F-16's radar is crucial for maintaining its combat effectiveness against evolving threats. Advanced radar systems improve target detection, tracking, and engagement capabilities, extending the operational lifespan and relevance of the F-16 fleet. This ensures the aircraft can continue to perform its mission effectively in modern air combat environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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
Financial Breakdown
Contract Ceiling: $179,674,895
Exercised Options: $179,674,895
Current Obligation: $179,674,895
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F4262001D0058
IDV Type: IDC
Timeline
Start Date: 2012-12-20
Current End Date: 2019-04-30
Potential End Date: 2019-09-18 00:00:00
Last Modified: 2022-09-28
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