DoD awards $556.5M contract to Lockheed Martin for system development and integration
Contract Overview
Contract Amount: $556,508,619 ($556.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2016-06-30
End Date: 2024-01-31
Sector: Defense
Official Description: SYSTEM DEVELOPMENT SUPPORT INTEGRATION IGF::CL::IGF
Plain-Language Summary
Department of Defense obligated $556.5 million to LOCKHEED MARTIN CORP for work described as: SYSTEM DEVELOPMENT SUPPORT INTEGRATION IGF::CL::IGF Key points: 1. Significant investment in critical defense systems. 2. Single award to a major defense contractor. 3. Potential for cost overruns and schedule delays. 4. Long-term contract duration raises questions about adaptability.
Value Assessment
Rating: good
The contract value of $556.5 million represents a substantial commitment to system development and integration. While the award is to a single entity, the scope suggests complex and specialized work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, likely due to the specialized nature of the system development and integration required by the Missile Defense Agency. This limits competition.
Taxpayer Impact: Taxpayer funds are directed to a single contractor for specialized defense services.
Public Impact
Ensures continued development of advanced defense capabilities. Supports high-tech jobs within the defense industry. Contributes to national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of vendor lock-in due to sole-source nature.
- Potential for scope creep impacting final cost.
- Dependency on a single contractor for critical systems.
Positive Signals
- Contract supports a vital national security mission.
- Lockheed Martin is a proven defense contractor.
- Long contract duration allows for sustained development.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced missile defense systems. It involves complex software, hardware, and integration services.
Small Business Impact
The contract was awarded to Lockheed Martin Corp, a large defense contractor. There is no indication of small business participation or set-asides in the provided data.
Oversight & Accountability
Oversight will be crucial given the sole-source nature and significant value. The Department of Defense and the Missile Defense Agency will need robust mechanisms to track progress, manage costs, and ensure performance.
Related Government Programs
- System Development Support
- Integration Services
- Missile Defense Systems
Risk Flags
- Sole-source award
- Large contract value
- Long contract duration
Tags
defense, missile-defense, lockheed-martin, system-development, integration, sole-source, department-of-defense
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $556.5 million to LOCKHEED MARTIN CORP. SYSTEM DEVELOPMENT SUPPORT INTEGRATION IGF::CL::IGF
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $556.5 million.
What is the period of performance?
Start: 2016-06-30. End: 2024-01-31.
Analysis insight 1
The contract's sole-source nature warrants scrutiny to ensure fair pricing and prevent complacency.
Analysis insight 2
Performance metrics and milestones will be key to evaluating the success of this long-term development effort.
Analysis insight 3
Understanding the specific system being developed is crucial for assessing its strategic importance and potential risks.