DoD Awards $146M Lockheed Martin Contract for Guided Missile and Space Vehicle Manufacturing
Contract Overview
Contract Amount: $14,629,949 ($14.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-30
End Date: 2019-09-10
Contract Duration: 529 days
Daily Burn Rate: $27.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JEMS 7.0
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $14.6 million to LOCKHEED MARTIN CORPORATION for work described as: JEMS 7.0 Key points: 1. Significant contract value of $146.3 million awarded to a major defense contractor. 2. Sole-source award raises questions about competition and potential price discovery. 3. Contract duration of 529 days suggests a substantial project scope. 4. Focus on guided missile and space vehicle manufacturing indicates a critical defense capability.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee represents a fair profit margin.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for a $146 million contract could lead to taxpayers paying a premium for these defense systems.
Public Impact
Impacts national security through the production of advanced missile and space vehicles. Potential for technological advancements in defense capabilities. Economic impact through job creation and supply chain activity for Lockheed Martin and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Sole-source award
Positive Signals
- Award to a major defense contractor with proven capabilities
- Addresses critical defense needs
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending in this area is often characterized by high R&D costs and specialized production, with significant government oversight.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data, suggesting potential missed opportunities for small business involvement.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight will be crucial to ensure cost control and performance given the Cost Plus Fixed Fee structure and sole-source nature.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of transparency on justification for sole-sourcing.
- Potential for higher taxpayer cost due to non-competitive award.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to LOCKHEED MARTIN CORPORATION. JEMS 7.0
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 $14.6 million.
What is the period of performance?
Start: 2018-03-30. End: 2019-09-10.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's difficult to ascertain the specific reasons. However, the government should have conducted a thorough price analysis to ensure the fixed fee and overall cost were reasonable, potentially through comparison with historical data or independent cost estimates.
What are the potential risks associated with the Cost Plus Fixed Fee contract type in this context?
Cost Plus Fixed Fee contracts carry the risk of cost overruns if the contractor's costs exceed projections, as the government absorbs these costs. The fixed fee provides an incentive for efficiency, but if the initial cost estimates are inaccurate or scope creep occurs, the total expenditure can be significantly higher than anticipated, impacting overall program value.
How does this contract contribute to the overall effectiveness of the Department of Defense's missile and space vehicle capabilities?
This contract directly supports the production of guided missile and space vehicles, which are essential for national defense and strategic deterrence. The award to a major contractor like Lockheed Martin suggests a focus on acquiring advanced or critical systems. The effectiveness will depend on the timely delivery of high-quality products that meet stringent military specifications.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,629,949
Exercised Options: $14,629,949
Current Obligation: $14,629,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-03-30
Current End Date: 2019-09-10
Potential End Date: 2019-09-10 00:00:00
Last Modified: 2026-02-23
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