DoD Awards $250M for JASSM Production to Lockheed Martin, Sole-Source Contract
Contract Overview
Contract Amount: $250,133,210 ($250.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2013-12-19
End Date: 2020-02-28
Contract Duration: 2,262 days
Daily Burn Rate: $110.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JASSM LOT 12 PRODUCTION; INCORPORATE FPDS TRANSACTION CODE 4.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $250.1 million to LOCKHEED MARTIN CORPORATION for work described as: JASSM LOT 12 PRODUCTION; INCORPORATE FPDS TRANSACTION CODE 4. Key points: 1. Significant investment in advanced missile technology. 2. Sole-source award raises questions about price competition. 3. Long contract duration suggests sustained need. 4. Focus on guided missile manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $250 million over 2262 days (approximately 6.2 years) is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or previous lots.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to reduce prices.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for the JASSM missiles, as there was no opportunity for other manufacturers to bid and potentially offer a lower price.
Public Impact
Enhances U.S. air-to-ground strike capabilities. Supports advanced defense technology development. Potential for foreign military sales, impacting international relations. Job creation within the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
- High contract value
Positive Signals
- Acquisition of critical defense asset
- Potential for technological advancement
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector (NAICS 336414). Spending in this sector is driven by national defense priorities and technological innovation, with significant R&D investments.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature necessitates robust oversight to ensure performance and cost control.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns due to lack of market pressure.
- Long-term commitment may not reflect evolving threats or technologies.
- Dependency on a single supplier.
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 $250.1 million to LOCKHEED MARTIN CORPORATION. JASSM LOT 12 PRODUCTION; INCORPORATE FPDS TRANSACTION CODE 4.
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 $250.1 million.
What is the period of performance?
Start: 2013-12-19. End: 2020-02-28.
What is the historical cost per unit for JASSM missiles under previous contracts, and how does this award compare?
Historical cost-per-unit data for JASSM missiles is crucial for evaluating the value of this $250 million award. Without access to previous contract pricing, it's challenging to determine if the current price reflects inflation, technological upgrades, or potential inefficiencies stemming from the sole-source nature of this procurement.
What are the specific justifications for awarding this contract on a sole-source basis, and were alternatives considered?
Sole-source awards typically require strong justification, such as unique capabilities or proprietary technology. Understanding the rationale behind not competing this JASSM production lot is essential for assessing the procurement's fairness and potential for cost savings through competition in future awards.
How does the performance and reliability of the JASSM missile compare to similar systems from other nations or potential domestic competitors?
Assessing the JASSM's effectiveness relative to alternatives is key to justifying its continued sole-source procurement. Benchmarking its performance metrics, such as range, accuracy, and survivability, against comparable systems helps determine if its unique capabilities warrant the absence of competitive pricing.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $251,008,983
Exercised Options: $251,008,983
Current Obligation: $250,133,210
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $2,370,319
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-12-19
Current End Date: 2020-02-28
Potential End Date: 2020-02-28 00:00:00
Last Modified: 2024-07-01
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