DoD Awards $46.5M for Modular Missile Development to Lockheed Martin
Contract Overview
Contract Amount: $46,485,906 ($46.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-08-21
End Date: 2025-08-25
Contract Duration: 735 days
Daily Burn Rate: $63.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: DISRUPTIVE FUTURES MODULAR MISSILE
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $46.5 million to LOCKHEED MARTIN CORPORATION for work described as: DISRUPTIVE FUTURES MODULAR MISSILE Key points: 1. Significant investment in advanced missile technology. 2. Lockheed Martin is a major defense contractor, indicating established capabilities. 3. Potential for technological advancement in defense capabilities. 4. Focus on ammunition manufacturing suggests a specific strategic need.
Value Assessment
Rating: good
The contract value of $46.5 million for a modular missile system appears reasonable given the complexity and advanced nature of the technology. Benchmarking against similar R&D contracts for advanced weapon systems would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple bidders to compete, potentially leading to better pricing and innovation.
Taxpayer Impact: Taxpayer funds are being used for advanced defense capabilities, aiming for enhanced national security through technological superiority.
Public Impact
Enhances U.S. Air Force's missile capabilities with modular design. Supports innovation in defense manufacturing and technology. Contributes to the defense industrial base in Florida.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in advanced R&D projects.
- Long-term sustainment and upgrade costs for modular systems.
- Dependence on a single contractor for critical technology.
Positive Signals
- Modular design allows for future upgrades and adaptability.
- Fixed Price Incentive contract structure encourages cost control.
- Competition ensures a baseline level of value for taxpayer dollars.
Sector Analysis
This contract falls within the defense sector, specifically focusing on ammunition and missile manufacturing. Spending in this area is driven by national security priorities and technological advancements in warfare.
Small Business Impact
While the primary contractor is Lockheed Martin, the contract may offer opportunities for small businesses through subcontracting, particularly in specialized component manufacturing or support services.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The fixed-price incentive contract type includes provisions for performance and cost targets, encouraging accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Technological obsolescence risk.
- Cost growth potential in R&D.
- Supply chain vulnerabilities for specialized components.
- Integration challenges with existing platforms.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.5 million to LOCKHEED MARTIN CORPORATION. DISRUPTIVE FUTURES MODULAR MISSILE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
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 $46.5 million.
What is the period of performance?
Start: 2023-08-21. End: 2025-08-25.
What is the projected lifecycle cost of the modular missile system, including sustainment and upgrades?
The current contract focuses on development and initial production. Lifecycle cost projections are not detailed in this award but would encompass ongoing maintenance, potential upgrades to modular components, training, and eventual disposal. These costs are critical for long-term budget planning and should be assessed as the program matures.
How will the modular design truly reduce long-term costs compared to traditional missile systems?
The modular design aims to reduce long-term costs by allowing for easier and cheaper upgrades of individual components rather than replacing entire systems. This adaptability to new threats or technologies, coupled with potentially streamlined maintenance and reduced obsolescence, is expected to yield cost savings over the system's lifespan.
What are the specific performance metrics tied to the incentive portion of the contract?
The incentive structure is linked to achieving specific performance targets, which could include factors like range, accuracy, payload capacity, or reliability. The exact metrics are proprietary but are designed to motivate Lockheed Martin to exceed baseline requirements while managing costs effectively.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA865823RA005
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,871,441
Exercised Options: $53,871,441
Current Obligation: $46,485,906
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $936,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865621DA022
IDV Type: IDC
Timeline
Start Date: 2023-08-21
Current End Date: 2025-08-25
Potential End Date: 2025-08-25 00:00:00
Last Modified: 2025-12-08
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