DoD Awards Lockheed Martin $3.35 Billion for F-22 Raptor Aircraft Manufacturing
Contract Overview
Contract Amount: $3,351,281,583 ($3.4B)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2001-12-04
End Date: 2013-12-31
Contract Duration: 4,410 days
Daily Burn Rate: $759.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200209!000048!5700!GU75 !ASC/YFK !F3365701C2095 !A!N! !N! !20011204!20021031!003268869!003268869!834951691!N!LOCKHEED MARTIN CORPORATION !86 SOUTH COBB DR !MARIETTA !GA!30063!49756!067!13!MARIETTA !COBB !GEORGIA !+000026000000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3AFB!F-22 RAPTOR !336411!E! !1! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!N!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76108
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $3.35 billion to LOCKHEED MARTIN CORP for work described as: 200209!000048!5700!GU75 !ASC/YFK !F3365701C2095 !A!N! !N! !20011204!20021031!003268869!003268869!834951691!N!LOCKHEED MARTIN CORPORATION !86 SOUTH COBB DR !MARIETTA !GA!30063!49756!067!13!MARIETTA !COBB !GEORGIA !+000026000000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRA… Key points: 1. Significant contract value for advanced aircraft production. 2. Sole-source award to Lockheed Martin, limiting competition. 3. Potential for cost overruns given long-term, complex nature of the program. 4. Defense sector spending heavily concentrated on major prime contractors.
Value Assessment
Rating: questionable
The contract value of $3.35 billion is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar large-scale aircraft manufacturing contracts.
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 lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition raises concerns about the efficient use of taxpayer funds, as the government may not be securing the best possible price.
Public Impact
Taxpayers fund the development and production of advanced military aircraft. The F-22 Raptor program represents a significant investment in national defense capabilities. Economic impact through job creation and supply chain activity for Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of competition
- Potential for cost growth in long-term defense contracts
- Sole-source awards can reduce government leverage
Positive Signals
- Supports critical national defense capabilities
- Long-term contract provides stability for contractor
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to the strategic importance and cost of the assets.
Small Business Impact
While the prime contractor is a large corporation, the contract may indirectly benefit small businesses through subcontracts. However, the primary award does not indicate specific set-asides or direct engagement with small businesses.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial for managing costs, ensuring quality, and verifying performance on such a large and complex program.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- High contract value
- Long contract duration
- Complex technology
- Potential for cost overruns
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.35 billion to LOCKHEED MARTIN CORP. 200209!000048!5700!GU75 !ASC/YFK !F3365701C2095 !A!N! !N! !20011204!20021031!003268869!003268869!834951691!N!LOCKHEED MARTIN CORPORATION !86 SOUTH COBB DR !MARIETTA !GA!30063!49756!067!13!MARIETTA !COBB !GEORGIA !+000026000000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3AFB!F-22 RAPTOR !336411!E! !1! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!N!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $3.35 billion.
What is the period of performance?
Start: 2001-12-04. End: 2013-12-31.
What is the total lifecycle cost of the F-22 program, and how does this contract contribute to it?
The total lifecycle cost of the F-22 program is estimated to be significantly higher than this initial contract, encompassing development, production, sustainment, and modernization. This $3.35 billion award represents a substantial portion of the production phase, funding the manufacturing of a specific number of aircraft and associated components. Understanding the full lifecycle cost is essential for evaluating the long-term value and affordability of the F-22 fleet.
What are the specific risks associated with the sole-source nature of this contract regarding cost and schedule?
The primary risk of a sole-source contract is the potential for inflated costs and schedule delays, as the government lacks the leverage of competitive bidding. Lockheed Martin, as the sole provider, may face less pressure to optimize efficiency or adhere strictly to initial cost and timeline estimates. This necessitates rigorous government oversight, negotiation, and performance monitoring to mitigate these inherent risks.
How does the F-22 Raptor program's effectiveness align with its substantial investment, considering technological advancements and evolving threats?
The F-22 Raptor was designed as an air superiority fighter with advanced stealth and sensor capabilities, representing a significant technological leap at its inception. Its effectiveness is measured by its ability to dominate the airspace. However, the substantial investment must be continually assessed against evolving geopolitical landscapes, emerging threats, and the development of new aerospace technologies to ensure its continued strategic relevance and value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-12-04
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2019-07-17
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