Pentagon Contract Announcement
(Source: US Department of Defense; issued Feb 28, 2017)
As the Royal Australian Air Force’s first two F-35A fighters arrived in Australia to attend the Avalon air show this week-end, the Pentagon has awarded Lockheed a $1.06 billion contract for ten months of F-35 fleet support. (RAAF file photo)
Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $1,059,239,124 cost-plus-incentive-fee contract for recurring logistics support and sustainment services for F-35 Lightning II aircraft in support of the Air Force, Navy, Marine Corps, non-Department of Defense (DoD) participants; and foreign military sales (FMS) customers.

Sustainment services to be provided include ground maintenance, action request resolution, depot activation, Automatic Logistics Information System, operations and maintenance, reliability, maintainability and health management implementation and support, supply chain management, and activities to provide and support pilot and maintainer initial training.

Work will be performed in Fort Worth, Texas (46 percent); Orlando, Florida (32 percent); Warton, United Kingdom (9 percent); El Segundo, California (7 percent); and Greenville, South Carolina (6 percent), and is expected to be completed in December 2017. (Emphasis added—Ed.)

Fiscal 2017 aircraft procurement (Air Force, Navy, Marine Corps); fiscal 2017 operations and maintenance (Air Force, Navy, Marine Corps); non-DoD participant; and FMS funds in the amount of $211,847,835, will be obligated at time of award, $100,076,889 of which will expire at the end of the current fiscal year.

This contract combines purchases for the Air Force ($507,192,448; 48 percent); Marine Corps ($205,489,386; 19 percent); Navy ($138,706,452; 13 percent); non-DoD participants ($163,559,282; 16 percent); and FMS customers ($44,291,556; 4 percent) under the FMS program.

This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1).

The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-17-C-0045).

(EDITOR’S NOTE: Given that about 200 F-35s have been delivered to date, this contract implies that each one will require $5.3 million’s worth of support for the remaining 10 months of 2017, even though most of the F-35s in service are only flying low-stress training missions.
There is also a major contradiction in the announcement’s wording.
On the one hand, it says the “work is expected to be completed in December 2017,” but, on the other hand, that only “$211,847,835 will be obligated at time of award,” of which only “$100,076,889 …will expire at the end of the current fiscal year” on Sept. 30, 2017.)


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