DoD Awards $238.7M for JASSM-ER Lot 11, Sole-Sourced to Lockheed Martin
Contract Overview
Contract Amount: $238,744,810 ($238.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2013-12-19
End Date: 2017-09-30
Contract Duration: 1,381 days
Daily Burn Rate: $172.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR-TO-SURFACE STANDOFF MISSILE - EXTENDED RANGE (JASSM-ER) LOT 11 LRIP 3 - WITH OPTION YEARS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $238.7 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR-TO-SURFACE STANDOFF MISSILE - EXTENDED RANGE (JASSM-ER) LOT 11 LRIP 3 - WITH OPTION YEARS Key points: 1. Significant investment in advanced missile technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Cost-plus-fixed-fee contract structure may incentivize higher spending. 4. Defense sector relies on JASSM-ER for strategic capabilities.
Value Assessment
Rating: questionable
The contract type (Cost Plus Fixed Fee) offers less incentive for cost control compared to fixed-price contracts. Without competitive pricing, it's difficult to assess if the $238.7M represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive bidding on this critical defense system.
Public Impact
Enhances U.S. and allied air power projection capabilities. Supports long-range strike missions against hardened targets. Contributes to deterrence against potential adversaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Critical defense capability
- Advanced technology
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-cost, technologically advanced area of defense spending. Benchmarks are difficult without competitive data.
Small Business Impact
No information available regarding small business participation in this sole-source contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. However, the sole-source nature limits opportunities for robust price oversight.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency in pricing
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $238.7 million to LOCKHEED MARTIN CORPORATION. JOINT AIR-TO-SURFACE STANDOFF MISSILE - EXTENDED RANGE (JASSM-ER) LOT 11 LRIP 3 - WITH OPTION YEARS
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $238.7 million.
What is the period of performance?
Start: 2013-12-19. End: 2017-09-30.
What is the projected cost per unit for the JASSM-ER missiles under this contract, and how does it compare to previous lots or similar systems?
The provided data does not include a per-unit cost breakdown for this specific contract. Without competitive bidding or detailed cost reporting, establishing a reliable per-unit cost benchmark is challenging. Further analysis would require access to detailed cost proposals and historical pricing data for JASSM-ER and comparable air-to-surface missiles.
What are the specific justifications for awarding this contract as sole-source, and have alternative competitive strategies been considered?
Sole-source justifications typically cite unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources. For the JASSM-ER, this could relate to its specific performance characteristics and integration with existing platforms. However, a thorough review of the justification and any market research conducted to explore potential competition is essential for accountability.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs and ensure value for money on this program?
Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a fixed fee, which is their profit. While this structure can facilitate the development of complex systems, it shifts much of the cost risk to the government. Effective oversight is crucial to ensure costs are reasonable and the fixed fee adequately compensates the contractor for their efforts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
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: $704,968,286
Exercised Options: $238,751,860
Current Obligation: $238,744,810
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,350,848
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-12-19
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2020-05-12
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