DoD awards $16.1M for F-16 sustainment, extending support through July 2026

Contract Overview

Contract Amount: $16,113,924 ($16.1M)

Contractor: Goodrich Corporation

Awarding Agency: Department of Defense

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $44.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-16 W B PBL - YR 8 DO

Place of Performance

Location: SANTA FE SPRINGS, LOS ANGELES County, CALIFORNIA, 90670

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to GOODRICH CORPORATION for work described as: F-16 W B PBL - YR 8 DO Key points: 1. Contract focuses on sustainment, indicating ongoing operational needs for the F-16 fleet. 2. Sole-source award raises questions about potential price inflation and lack of competitive pressure. 3. The contract duration of one year suggests a strategy of incremental funding and potential for future re-competition. 4. Performance period aligns with typical sustainment cycles, but specific deliverables are not detailed. 5. This contract falls within the broader category of aircraft parts manufacturing and sustainment services. 6. The absence of small business set-asides means opportunities for smaller firms are not explicitly prioritized.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar sustainment efforts for other aircraft platforms. The fixed-price nature provides some cost certainty, but the lack of competition limits the ability to assess if the pricing is truly competitive. Given the sole-source nature, it's difficult to determine if taxpayers are receiving optimal value compared to a scenario with multiple bidders vying for the contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Goodrich Corporation, was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The lack of competition suggests potential reasons such as unique capabilities, proprietary technology, or a lack of viable alternatives for this specific F-16 sustainment requirement.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no market pressure to ensure the most economical price. This limits the government's ability to leverage competition for better value.

Public Impact

The U.S. Air Force and potentially allied nations operating F-16 aircraft are the primary beneficiaries, ensuring continued operational readiness. Services delivered likely include maintenance, repair, overhaul, and provision of spare parts for F-16 aircraft. The geographic impact is primarily within the United States, where sustainment activities are managed, but indirectly supports global F-16 operations. Workforce implications include continued employment for engineers, technicians, and support staff at Goodrich Corporation and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in cost breakdown makes it difficult to assess value for money.
Contract duration is short, potentially leading to frequent re-negotiations or contract modifications.
No small business participation is explicitly mandated, potentially excluding smaller innovative firms.

Positive Signals

Ensures continued operational readiness of critical F-16 aircraft.
Fixed-price contract provides some level of cost predictability.
Leverages established contractor expertise for specialized sustainment needs.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized technical requirements, and significant government procurement. Sustainment contracts like this are crucial for maintaining the operational readiness of military fleets. The market for aircraft parts and auxiliary equipment manufacturing is substantial, with major players often holding sole-source or limited-competition contracts for specific platforms due to unique technical demands and long product lifecycles. Spending benchmarks for aircraft sustainment vary widely based on platform age, complexity, and operational tempo.

Small Business Impact

This contract does not appear to include a small business set-aside. The sole-source nature further limits opportunities for small businesses to participate directly. While Goodrich Corporation may utilize small business subcontractors, there is no explicit requirement or visibility provided in this award notice. This approach may not maximize opportunities for the small business industrial base within the aerospace sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for ensuring compliance with contract terms and financial accountability. The contract's fixed-price nature provides a degree of cost control. Transparency is limited due to the sole-source award and lack of detailed public cost information. Inspector General investigations could be initiated if performance issues or suspected fraud arise.

Related Government Programs

F-16 Aircraft Sustainment Programs
Aerospace Parts Manufacturing
Defense Logistics Agency Procurement
Aircraft Component Maintenance

Risk Flags

Sole-source award
Lack of competition
Limited price transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to GOODRICH CORPORATION. F-16 W B PBL - YR 8 DO

Who is the contractor on this award?

The obligated recipient is GOODRICH CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is Goodrich Corporation's track record with F-16 sustainment contracts?

Goodrich Corporation, now part of RTX (Raytheon Technologies), has a long history of supporting the F-16 program. Their involvement typically spans various components and systems, including landing gear, wheels, brakes, and engine components. Their track record generally indicates a capability to provide necessary parts and services for the platform's sustainment. However, specific performance metrics and past issues related to this particular PBL (Performance-Based Logistics) contract or similar sole-source awards would require deeper investigation into historical contract data and performance reports. The "YR 8 DO" designation suggests this is the eighth year of a larger PBL effort, implying a sustained relationship and likely a history of meeting basic requirements.

How does the $16.1M value compare to similar F-16 sustainment contracts?

Comparing the $16.1 million value directly to other F-16 sustainment contracts is difficult without knowing the specific scope of work and duration. This award is for a one-year period (ending June 30, 2026), which is relatively short for major sustainment efforts. Annual sustainment costs for a fleet can range significantly, often in the tens or hundreds of millions depending on the number of aircraft, their age, operational tempo, and the specific services included (e.g., depot-level maintenance, component repair, spare parts provisioning). This $16.1M likely represents a portion of the overall F-16 sustainment budget, possibly focused on specific component categories or a defined set of services for that year.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, Goodrich Corporation may not have the same incentive to offer the most cost-effective solutions. Another risk is vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future flexibility and negotiation power. Performance risk also exists, although Goodrich has a history with the platform; any degradation in service quality or delivery delays could impact F-16 operational readiness. Finally, the short one-year duration introduces administrative burden and potential disruption if contract terms are significantly altered in subsequent years.

What does 'F-16 W B PBL - YR 8 DO' signify?

'F-16 W B PBL - YR 8 DO' breaks down as follows: 'F-16' refers to the aircraft platform. 'W B' likely stands for 'Wheels and Brakes', indicating the specific components or systems covered. 'PBL' signifies 'Performance-Based Logistics', a contracting strategy focused on achieving desired outcomes (performance) rather than just acquiring goods or services. 'YR 8' indicates this is the eighth year of the Performance-Based Logistics contract. 'DO' stands for 'Delivery Order', meaning this is a specific order placed against an existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a broader PBL agreement.

What is the historical spending pattern for F-16 sustainment by the Defense Logistics Agency?

The Defense Logistics Agency (DLA) plays a significant role in the sustainment of various military platforms, including the F-16. Historical spending patterns for F-16 sustainment through DLA would likely show consistent, multi-year investments. Annual obligations can fluctuate based on fleet readiness needs, modernization programs, and the specific components or services being procured. While this specific $16.1M delivery order is for one year, the overall F-16 sustainment budget managed by DLA and other agencies (like the Air Force Sustainment Center) likely amounts to hundreds of millions of dollars annually when considering all aspects of maintaining the fleet. Analyzing past DLA obligations for similar PBLs or component sustainment would reveal trends in spending and contractor reliance.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 101 WACO ST, TROY, OH, 45373

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: $16,113,924

Exercised Options: $16,113,924

Current Obligation: $16,113,924

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRHA118D0001

IDV Type: IDC

Timeline