DoD Awards $267M Lockheed Martin Contract for JASSM Missiles, Facing Limited Competition
Contract Overview
Contract Amount: $266,789,332 ($266.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-10
End Date: 2024-10-31
Contract Duration: 2,243 days
Daily Burn Rate: $118.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM) GROUP ONE/ EXTREME RANGE (XR)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $266.8 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM) GROUP ONE/ EXTREME RANGE (XR) Key points: 1. Significant contract value for advanced missile systems. 2. Lockheed Martin is the sole provider, indicating a lack of competition. 3. Potential risks associated with single-source procurement and long-term sustainment. 4. Spending falls within the defense sector, specifically guided missile manufacturing.
Value Assessment
Rating: fair
The contract value of $266,789,332 for the JASSM program appears substantial. Without specific per-unit cost data or benchmarks for similar advanced missile systems, a precise pricing assessment is difficult. However, the lack of competition suggests potential for higher-than-market 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 limits price discovery and negotiation leverage for the government, potentially leading to less favorable pricing compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are being used for a high-value defense procurement with limited competitive pressure, raising concerns about cost-effectiveness.
Public Impact
Enhances U.S. Air Force's standoff strike capabilities. Supports advanced missile technology development and production. Contributes to national defense readiness and deterrence. Potential for long-term sustainment and upgrade contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration (over 5 years) may not reflect current market conditions.
- Cost-plus contract type can incentivize spending over cost control.
Positive Signals
- Acquires critical, advanced weapon systems.
- Supports a key defense contractor and its workforce.
- Addresses specific, high-priority military requirements.
Sector Analysis
This contract falls under the Defense sector, specifically within Guided Missile and Space Vehicle Manufacturing. Spending in this niche area is typically characterized by high R&D costs, long development cycles, and often limited contractor bases due to specialized requirements.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no information provided regarding subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The Department of Defense, specifically the Air Force, is the awarding agency. Oversight mechanisms would typically involve contract performance monitoring, financial audits, and adherence to procurement regulations to ensure proper use of funds.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement
- Cost-plus contract type
- Long contract duration
- Lack of small business participation data
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 $266.8 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM) GROUP ONE/ EXTREME RANGE (XR)
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 $266.8 million.
What is the period of performance?
Start: 2018-09-10. End: 2024-10-31.
What is the projected cost per JASSM missile, and how does it compare to similar systems or historical pricing?
The provided data does not include a specific per-unit cost for the JASSM missile. The total award is $266,789,332 over a period of 2243 days. To assess value, this total amount would need to be divided by the number of missiles procured. Benchmarking against similar advanced, long-range standoff missiles, considering their technological sophistication and production volume, would be necessary for a comprehensive value assessment.
What are the risks associated with a sole-source award for critical defense systems like JASSM?
Sole-source awards eliminate competitive pressure, potentially leading to higher prices and reduced innovation. For critical defense systems, this can also create dependency on a single supplier, increasing vulnerability if that supplier faces production issues, financial instability, or geopolitical challenges. It limits the government's options for alternative solutions or cost reductions.
How effective is the Cost Plus Fixed Fee (CPFF) contract type in ensuring cost efficiency for this missile program?
The CPFF contract type covers allowable costs plus a negotiated fixed fee. While it allows for flexibility in development and production, it can reduce the contractor's incentive to control costs, as the fee is fixed regardless of the final cost. This structure is often used when cost estimation is difficult, but it requires robust government oversight to manage spending effectively.
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: 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: $420,694,612
Exercised Options: $278,388,413
Current Obligation: $266,789,332
Actual Outlays: $12,996,370
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-09-10
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2025-09-10
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