Lockheed Martin awarded $25.6M for F-16 flight simulator sustainment at Luke AFB

Contract Overview

Contract Amount: $25,583,774 ($25.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: General Services Administration

Start Date: 2018-05-01

End Date: 2023-10-31

Contract Duration: 2,009 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUSTAINMENT AND MODIFICATION SERVICES OF A NETWORKED SET OF FOUR FLIGHT SIMULATORS USED FOR FORMAL F16 TRAINING AND DEVELOPMENT AT THE F-16 NETWORKED TRAINING CENTER-LUKE (NTC-L) LOCATED AT THE LUKE AFB, ARIZONA.

Place of Performance

Location: LUKE AFB, MARICOPA County, ARIZONA, 85309

State: Arizona Government Spending

Plain-Language Summary

General Services Administration obligated $25.6 million to LOCKHEED MARTIN CORPORATION for work described as: SUSTAINMENT AND MODIFICATION SERVICES OF A NETWORKED SET OF FOUR FLIGHT SIMULATORS USED FOR FORMAL F16 TRAINING AND DEVELOPMENT AT THE F-16 NETWORKED TRAINING CENTER-LUKE (NTC-L) LOCATED AT THE LUKE AFB, ARIZONA. Key points: 1. Contract awarded to Lockheed Martin Corporation for sustainment and modification of F-16 flight simulators. 2. Services are for formal F-16 training and development at Luke AFB, Arizona. 3. The contract value is $25,583,773.98 over a period of approximately 5.5 years. 4. This falls under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: good

The contract value of $25.6 million for sustainment and modification of four flight simulators appears reasonable given the specialized nature of the equipment and the duration of the contract. Benchmarking against similar complex simulation systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that should have resulted in fair market pricing. The use of a Delivery Order under an existing contract implies a structured procurement approach.

Taxpayer Impact: Taxpayer funds are being used for essential training infrastructure, ensuring the readiness of F-16 pilots. The competitive award process aims to maximize value for the investment.

Public Impact

Ensures continued readiness and training capabilities for F-16 pilots. Supports advanced simulation technology crucial for complex aerial combat training. Maintains critical infrastructure at Luke Air Force Base, a key training hub. Potential for follow-on contracts for future simulator upgrades or maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future modifications require proprietary knowledge.
Dependence on a single contractor for critical training systems.

Positive Signals

Awarded through full and open competition.
Supports a vital military training program.
Long-term sustainment contract provides stability.

Sector Analysis

This contract falls within the IT and Defense sectors, specifically focusing on specialized simulation and training systems. Spending on advanced training simulators is common in the defense industry to maintain pilot proficiency and develop new combat strategies.

Small Business Impact

The data indicates this contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large, complex defense contracts.

Oversight & Accountability

The General Services Administration (GSA) through its Federal Acquisition Service awarded this contract. GSA plays a key role in overseeing federal procurement, ensuring compliance and efficiency. Oversight would involve monitoring contract performance and adherence to terms.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Contract awarded through full and open competition.
Supports critical military training infrastructure.
Long-term contract provides stability for training operations.
Potential for future technology upgrades and modernization.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.6 million to LOCKHEED MARTIN CORPORATION. SUSTAINMENT AND MODIFICATION SERVICES OF A NETWORKED SET OF FOUR FLIGHT SIMULATORS USED FOR FORMAL F16 TRAINING AND DEVELOPMENT AT THE F-16 NETWORKED TRAINING CENTER-LUKE (NTC-L) LOCATED AT THE LUKE AFB, ARIZONA.

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $25.6 million.

What is the period of performance?

Start: 2018-05-01. End: 2023-10-31.

What is the long-term strategy for maintaining and upgrading these F-16 simulators beyond the current contract period?

The long-term strategy for maintaining and upgrading these F-16 simulators will likely involve a series of competitive procurements for sustainment and modernization. Agencies typically plan for future needs by assessing technological advancements, pilot training requirements, and the operational lifespan of existing systems. This may include phased upgrades, component replacements, or eventual replacement of the simulators themselves, all subject to future budget allocations and competitive bidding processes.

How does the cost of this simulator sustainment contract compare to industry benchmarks for similar advanced training systems?

Direct comparison to industry benchmarks for similar advanced training systems is challenging without specific details on the simulator's technological sophistication and the scope of 'sustainment and modification.' However, the $25.6 million over five years for four networked simulators suggests an average annual cost of approximately $4.6 million per simulator. This figure needs to be evaluated against the complexity, fidelity, and maintenance requirements of the specific F-16 simulators to determine if it represents a competitive market rate.

What are the potential risks associated with relying on Lockheed Martin for the sustainment of these critical training assets?

The primary risk associated with relying on Lockheed Martin for sustainment is potential vendor lock-in, where the specialized nature of the simulators makes it difficult or costly to switch providers for future maintenance or upgrades. This could lead to reduced negotiating power and potentially higher costs over time. Additionally, any disruptions in Lockheed Martin's ability to provide services, whether due to internal issues or supply chain problems, could directly impact F-16 pilot training schedules and readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID08170044

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 9500 GODWIN DR, MANASSAS, VA, 20110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,214,105

Exercised Options: $25,606,448

Current Obligation: $25,583,774

Actual Outlays: $33,241

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $3,029,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0011

IDV Type: GWAC

Timeline