DoD Awards $44.3M for JASSM ITIK Production to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $44,303,378 ($44.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-09-28
End Date: 2024-11-30
Contract Duration: 2,620 days
Daily Burn Rate: $16.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM) - INTELLIGENT TEST INSTRUMENTATION KIT (ITIK) PRODUCTION
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $44.3 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM) - INTELLIGENT TEST INSTRUMENTATION KIT (ITIK) PRODUCTION Key points: 1. Significant contract value for specialized missile testing equipment. 2. Sole-source award to Lockheed Martin raises questions about price discovery. 3. Long contract duration (7+ years) may not reflect current market conditions. 4. Focus on a single prime contractor for critical test instrumentation.
Value Assessment
Rating: questionable
The $44.3 million award for the JASSM ITIK Production is a substantial amount for specialized test equipment. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or if it reflects fair and reasonable pricing.
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 lack of competition limits the government's ability to leverage market forces for better pricing and potentially innovative solutions.
Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers, as there was no pressure on the contractor to offer the most competitive price.
Public Impact
Ensures continued availability of critical testing capabilities for the JASSM missile program. Supports advanced missile development and readiness for the U.S. Air Force. Potential for cost overruns due to lack of competitive pressure. Limited visibility into the cost-effectiveness of the awarded price.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of price competition
Positive Signals
- Supports critical defense program
- Established contractor with program knowledge
Sector Analysis
The defense sector, particularly for advanced weapon systems like the JASSM, often involves complex and specialized components. Spending benchmarks for such niche instrumentation kits are difficult to establish due to limited market availability and proprietary technology.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large prime contractor. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting performance requirements and that costs remain reasonable throughout the contract's extended duration. Transparency in pricing and progress reporting is crucial.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost creep
- Long contract duration
- Limited transparency on pricing justification
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.3 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM) - INTELLIGENT TEST INSTRUMENTATION KIT (ITIK) PRODUCTION
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 $44.3 million.
What is the period of performance?
Start: 2017-09-28. End: 2024-11-30.
What is the justification for the sole-source award, and were alternative procurement methods considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense would need to provide documentation detailing why competition was not feasible or advantageous for this specific JASSM ITIK production contract, and whether any market research was conducted to identify potential alternative sources or solutions.
How is the government ensuring fair and reasonable pricing without competitive bidding?
Without competition, the government relies on robust cost analysis, price negotiation, and contract surveillance. This involves scrutinizing the contractor's proposed costs, verifying their accuracy and allowability, and potentially using historical pricing data or independent cost estimates. Regular audits and performance reviews are essential to monitor expenditures and ensure value for money.
What is the long-term strategy for acquiring this specialized test instrumentation, and will future procurements be competed?
The long-term strategy is unclear from this award alone. While this contract covers production through November 2024, future needs for JASSM ITIK or similar instrumentation should ideally be subject to competitive bidding to ensure optimal pricing and access to innovation. The government should explore opportunities to break down requirements or foster competition for future iterations.
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
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: $45,876,197
Exercised Options: $45,876,197
Current Obligation: $44,303,378
Actual Outlays: $635,452
Subaward Activity
Number of Subawards: 55
Total Subaward Amount: $47,464,863
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868217D0002
IDV Type: IDC
Timeline
Start Date: 2017-09-28
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2025-06-18
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)