DoD awards $22.8M for Paveway II production, including GBU-12 components, to Lockheed Martin
Contract Overview
Contract Amount: $22,814,925 ($22.8M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2017-11-07
End Date: 2019-11-17
Contract Duration: 740 days
Daily Burn Rate: $30.8K/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 FOR THE NAVY. INCLUDES GBU-12 AIR FOIL GROUPS AND COMPUTER CONTROL GROUPS.
Place of Performance
Location: ARCHBALD, LACKAWANNA County, PENNSYLVANIA, 18403
Plain-Language Summary
Department of Defense obligated $22.8 million to LOCKHEED MARTIN CORP for work described as: PAVEWAY II PRODUCTION UNITS FOR THE NAVY. INCLUDES GBU-12 AIR FOIL GROUPS AND COMPUTER CONTROL GROUPS. Key points: 1. Contract awarded to Lockheed Martin for Paveway II production. 2. Includes GBU-12 Air Foil Groups and Computer Control Groups. 3. Firm Fixed Price contract type suggests price certainty. 4. No small business participation noted.
Value Assessment
Rating: good
The contract value of $22.8M for Paveway II production appears reasonable given the scope. Benchmarking against similar munitions contracts would provide further context on pricing efficiency.
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 generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense equipment.
Public Impact
Procurement of Paveway II enhances precision-guided munition capabilities for the Navy. The GBU-12 components are critical for air-to-ground strike operations. This award supports ongoing defense readiness and operational requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation.
- Contract duration is significant (740 days).
Positive Signals
- Full and open competition.
- Firm Fixed Price contract type.
Sector Analysis
This contract falls within the Defense sector, specifically ammunition manufacturing. Spending in this area is driven by operational needs and technological advancements in munitions.
Small Business Impact
The contract did not include provisions for small business participation. Future solicitations could explore opportunities to engage small businesses in the defense supply chain.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The firm fixed price contract type provides a degree of cost control, but performance monitoring remains crucial.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of small business participation.
- Potential for cost escalation in long-term contracts.
- Reliance on a single large prime contractor.
- Dependence on specific component suppliers.
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 $22.8 million to LOCKHEED MARTIN CORP. PAVEWAY II PRODUCTION UNITS FOR THE NAVY. INCLUDES GBU-12 AIR FOIL GROUPS AND COMPUTER CONTROL GROUPS.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.8 million.
What is the period of performance?
Start: 2017-11-07. End: 2019-11-17.
What is the historical cost trend for Paveway II production units?
Analyzing historical cost data for Paveway II production units is essential to determine if the current award reflects a favorable price trend or potential cost escalation. Comparing this contract's unit price against previous awards, adjusted for inflation and any technological upgrades, would reveal cost efficiency over time and inform future procurement strategies.
What are the specific performance metrics and quality assurance measures for these munitions?
Understanding the performance metrics and quality assurance measures is critical for ensuring the reliability and effectiveness of the Paveway II munitions. This includes details on testing protocols, acceptance criteria, and defect tracking. Robust QA processes mitigate the risk of delivering substandard or non-functional ordnance, directly impacting mission success and safety.
How does the GBU-12 component pricing compare to similar guidance kits on the market?
Benchmarking the pricing of the GBU-12 components against similar guidance kits from other manufacturers is vital for assessing value for money. This comparison helps identify if Lockheed Martin's pricing is competitive or if alternative, potentially more cost-effective, solutions exist. Such analysis ensures the DoD is not overpaying for essential weapon system upgrades.
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
Solicitation ID: FA821311R3011
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: $22,814,925
Exercised Options: $22,814,925
Current Obligation: $22,814,925
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: 2017-11-07
Current End Date: 2019-11-17
Potential End Date: 2019-11-17 00:00:00
Last Modified: 2019-04-16
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