Lockheed Receives $307.6M in F-22 Support Contracts

F/A-22 Raptor

F/A-22 Raptor
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In November 2005, DID covered over $3 billion in contracts related to the F-22 Raptor, mostly related to production of the Lot 5 batch production of 24 aircraft. Lockheed Martin Aeronautics Co. in Fort Worth, TX has now been awarded a pair of support contracts by the Headquarters Aeronautical Systems Center, at Wright-Patterson Air Force Base, OH to help get ready for the F-22’s Lot 6 production batch.

The F/A-22 (now just the F-22 again) was approved for full-rate production in April 2005. These contracts include:

A $116.5 million firm-fixed-price fee contract modification provides for F-22 Lot 6 Program Support/ Annual Sustaining (PSAS) for period I, i.e. through June 2006. Negotiations were completed in December 2005. The Headquarters Aeronautical Systems Center, Wright-Patterson Air Force Base, Ohio, is the contracting activity (F33657-97-C-0031/P00070).

As a point of reference, the FY 2005 Lot 5 PSAS contract mentioned in our November 17, 2005 article was a $160 million firm-fixed-price/ cost-plus fixed-fee contract modification that definitized FY 2005 production support/ annual sustainment associated with the F-22 Lot 5 batch.

F-22 plane cutaway

F/A-22 Cutaway

A $191.1 million not-to-exceed firm-fixed-price contract modification provides long lead activities and Performance Based Agile Logistics Support (PALS) for F-22 Lot 6 aircraft and associated equipment. Negotiations were completed in December 2005, and this work will be complete in February 2006. At this time, $95.4 million has been obligated, which is another way of saying that a large chunk of the work has been done already. The Headquarters Aeronautical Systems Center at Wright-Patterson Air Force Base in OH issued the contract (FA8611-05-C-2850/P00008).

Agile logistics includes aspects of supply chain visibility, lean manufacturing, and collaboration among a complex network of partners. By doing this, production is improved and overall costs are minimized throughout the supply chain. As a point of reference, a September 9, 2005 DID article covered a $395 million PALS-related cost-plus fixed-fee contract modification related for the F-22 Lot 5 batch.