DoD awards $87.6M for PAVEWAY II Production Units to Lockheed Martin, highlighting ammunition manufacturing
Contract Overview
Contract Amount: $87,627,480 ($87.6M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2016-07-11
End Date: 2018-07-31
Contract Duration: 750 days
Daily Burn Rate: $116.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PAVEWAY II PRODUCTION UNITS
Place of Performance
Location: ARCHBALD, LACKAWANNA County, PENNSYLVANIA, 18403
Plain-Language Summary
Department of Defense obligated $87.6 million to LOCKHEED MARTIN CORP for work described as: PAVEWAY II PRODUCTION UNITS Key points: 1. Significant contract value for ammunition production. 2. Lockheed Martin is a major defense contractor. 3. Full and open competition was utilized. 4. Contract spans two delivery orders over two years.
Value Assessment
Rating: good
The total award amount is $87.6 million. Without specific per-unit cost data or comparable contract benchmarks, a precise value assessment is difficult. However, the firm fixed-price structure suggests a defined cost expectation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices and encourage cost-efficiency.
Taxpayer Impact: Taxpayer funds are utilized for defense procurement. The competitive nature of the award aims to ensure value for money, but ongoing monitoring is crucial.
Public Impact
Ensures supply of critical munitions for Air Force operations. Supports jobs within the defense manufacturing sector. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdowns for unit pricing.
- Potential for price escalation in future orders if not managed.
- Dependence on a single large contractor for production.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
- Clear delivery order structure.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by military readiness requirements and technological advancements in weaponry. Benchmarks are often tied to specific munition types and production volumes.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corp, a large business. There is no explicit information provided regarding small business participation in this specific award or subcontracting efforts.
Oversight & Accountability
The Department of the Air Force is the contracting activity. Oversight would typically involve contract management, performance monitoring, and ensuring compliance with terms and conditions throughout the contract duration.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited visibility into unit cost drivers.
- Potential for supply chain disruptions affecting production.
- Reliance on a single large prime contractor.
- Contract duration and delivery order structure.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.6 million to LOCKHEED MARTIN CORP. PAVEWAY II PRODUCTION UNITS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $87.6 million.
What is the period of performance?
Start: 2016-07-11. End: 2018-07-31.
What is the historical cost trend for PAVEWAY II units?
Historical cost data for PAVEWAY II units is not provided in this award notice. Analyzing past contract awards for this munition, including any price adjustments or competitive bidding outcomes, would be necessary to establish a cost trend. This would help determine if current pricing is consistent with historical performance or if there are significant deviations.
What are the specific performance metrics for PAVEWAY II production?
The award notice does not detail specific performance metrics for PAVEWAY II production. Key performance indicators would typically include on-time delivery, quality control standards (e.g., defect rates), and adherence to technical specifications. The contracting agency would monitor these against contract requirements.
How does the unit cost compare to similar munitions manufactured by competitors?
A direct comparison of the unit cost for PAVEWAY II to similar munitions from competitors is not feasible with the provided data. Such an analysis would require access to pricing information for comparable systems from other manufacturers and potentially other government contracts. The 'full and open competition' suggests an attempt to achieve competitive pricing.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 459 KENNEDY DR, ARCHBALD, PA, 18403
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,627,480
Exercised Options: $87,627,480
Current Obligation: $87,627,480
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821311D0007
IDV Type: IDC
Timeline
Start Date: 2016-07-11
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2018-02-01
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