DoD awards $837.7M for Guided Missiles, primarily for Longbow LLC's Hellfire system

Contract Overview

Contract Amount: $1,289,683,304 ($1.3B)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 1999-04-30

End Date: 2007-11-30

Contract Duration: 3,136 days

Daily Burn Rate: $411.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199912!2100!1346!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0199C0086 !A!*!* !19990430!20050829!837750223!837750223!837750223!N!04WF2!LONGBOW LIMITED LIABILITY CORP!5798 S SEMORAN BLVD !ORLANDO !FL!32822!53000!095!12!ORLANDO !ORANGE !FLORIDA !0001!+000327300000!N!Y!001244200000!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !1CPA!HELLFIRE MODULAR MSL SYS !3761!3!*!*!*!B!A!*!D !N!J!1!001!N!1A!A!Y!F!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $1.29 billion to LONGBOW LLC for work described as: 199912!2100!1346!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0199C0086 !A!*!* !19990430!20050829!837750223!837750223!837750223!N!04WF2!LONGBOW LIMITED LIABILITY CORP!5798 S SEMORAN BLVD !ORLANDO !FL!32822!53000!095!12!ORLANDO !ORANGE… Key points: 1. Significant contract value ($837.7M) awarded for guided missile systems. 2. Longbow LLC is the primary contractor, indicating potential market concentration. 3. The contract spans nearly 8 years, suggesting a long-term need. 4. The 'NOT COMPETED' designation raises questions about competitive pricing and alternatives.

Value Assessment

Rating: questionable

The total contract value is $837.7M. Without specific unit pricing or comparison data for similar missile systems, a direct assessment of value is difficult. However, the lack of competition may have led to a higher price than a competitive bid.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method can reduce administrative burden but may limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these missile systems.

Public Impact

Ensures continued supply of critical missile systems for defense operations. Supports a specific defense contractor, potentially impacting regional employment. The long duration of the contract implies sustained military requirements for this technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
High contract value

Positive Signals

Addresses a critical defense need
Potential for technological advancement in missile systems

Sector Analysis

This contract falls within the Defense sector, specifically for missile and space systems. Spending in this area is often characterized by high R&D costs, long procurement cycles, and significant government oversight due to national security implications.

Small Business Impact

There is no explicit indication of small business participation in this contract data. The award to Longbow LLC, a limited liability company, does not inherently suggest or preclude small business subcontracting.

Oversight & Accountability

The 'NOT COMPETED' status suggests that a justification for other than full and open competition was likely required and approved. Further review of procurement documentation would be needed to assess the adequacy of this justification and overall oversight.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition may lead to inflated costs.
Potential for vendor lock-in.
Limited transparency on pricing justification.
Long contract duration could mask inefficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.29 billion to LONGBOW LLC. 199912!2100!1346!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0199C0086 !A!*!* !19990430!20050829!837750223!837750223!837750223!N!04WF2!LONGBOW LIMITED LIABILITY CORP!5798 S SEMORAN BLVD !ORLANDO !FL!32822!53000!095!12!ORLANDO !ORANGE !FLORIDA !0001!+000327300000!N!Y!001244200000!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !1CPA!HELLFIRE MODULAR MSL SYS !3761!3!*!*!*!B!A!*!D !N!J!1!0

Who is the contractor on this award?

The obligated recipient is LONGBOW LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $1.29 billion.

What is the period of performance?

Start: 1999-04-30. End: 2007-11-30.

What was the specific justification for not competing this large contract, and were alternative solutions or contractors considered?

The justification for not competing this contract is not provided in the data. Typically, reasons include unique capabilities, urgent needs, or lack of viable alternatives. Without this information, it's impossible to determine if the government explored all options or received the best possible price and innovation through competitive means.

How does the per-unit cost of the Hellfire system under this contract compare to industry benchmarks or previous contracts?

The provided data does not include per-unit cost information or allow for direct comparison to benchmarks or previous contracts. Assessing the value for money requires detailed cost breakdowns and market analysis, which are absent here. The lack of competition makes a definitive value assessment challenging.

What are the long-term strategic implications of awarding such a significant portion of missile system procurement to a single entity?

Awarding a large, long-term contract to a single entity like Longbow LLC can ensure a stable supply chain and foster specialized expertise. However, it also carries risks of vendor lock-in, reduced innovation due to lack of competitive pressure, and potential price increases over time if not managed carefully.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5798 S SEMORAN BLVD, ORLANDO, FL, 90

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

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: YES

Timeline