DoD Awards $879M for Joint Air-to-Surface Standoff Missile Lot 17 & 18 to Lockheed Martin
Contract Overview
Contract Amount: $878,755,916 ($878.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-03-31
End Date: 2026-04-30
Contract Duration: 2,221 days
Daily Burn Rate: $395.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT AIR TO SURFACE STANDOFF MISSILE LOT 17 AND 18.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $878.8 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE LOT 17 AND 18. Key points: 1. Significant investment in advanced missile technology for the Air Force. 2. Sole-source award to Lockheed Martin raises questions about competition and potential cost savings. 3. Long-term contract duration (2020-2026) suggests ongoing need and potential for future modifications. 4. Focus on guided missile manufacturing aligns with national defense priorities.
Value Assessment
Rating: fair
The contract value of $878.8 million for Lot 17 and 18 is substantial. Without comparable contract data for similar missile systems or previous lots, a precise pricing assessment is difficult. However, the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one vendor, Lockheed Martin, was considered capable of fulfilling the requirement. This lack of competition may limit price discovery and potentially lead to higher costs than if multiple bids were solicited.
Taxpayer Impact: Taxpayer funds are allocated to a single provider for a critical defense asset, with limited opportunity for competitive cost reduction.
Public Impact
Enhances U.S. Air Force's long-range strike capabilities. Supports advanced precision-guided munitions development. Ensures continued supply of a key weapon system for national security. Potential for job creation within Lockheed Martin's defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Long contract duration may not reflect current market conditions.
- Lack of transparency on specific unit costs.
Positive Signals
- Addresses critical defense capability need.
- Firm-fixed-price contract provides cost certainty.
- Long-term commitment ensures program stability.
Sector Analysis
The Department of Defense is a major consumer of advanced aerospace and defense products. Spending in this sector, particularly on sophisticated weaponry like guided missiles, is substantial and driven by national security imperatives. Benchmarks are often internal to defense programs due to the specialized nature of the technology.
Small Business Impact
The contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no explicit mention of subcontracting opportunities for small businesses within the provided data. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Defense, specifically the Air Force, is responsible for overseeing this contract. The firm-fixed-price structure provides some cost accountability. However, the sole-source nature warrants close monitoring to ensure fair pricing and effective program execution.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement limits competitive pressure on pricing.
- Long contract duration may not be optimal for evolving technology.
- Lack of transparency on specific unit costs.
- Potential for cost creep over the contract period.
- Dependence on a single supplier for a critical defense asset.
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 $878.8 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE LOT 17 AND 18.
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 $878.8 million.
What is the period of performance?
Start: 2020-03-31. End: 2026-04-30.
What is the historical cost trend for previous lots of the Joint Air-to-Surface Standoff Missile, and how does Lot 17 & 18 pricing compare?
Analyzing historical cost data from prior lots is crucial for assessing the value of the current $878.8 million award. Without this comparative data, it's challenging to determine if the pricing reflects inflation, technological advancements, or potential inefficiencies. A trend analysis would reveal if costs are escalating, stable, or decreasing, providing a clearer picture of taxpayer value.
What specific justifications were provided for the sole-source award, and what measures are in place to mitigate potential cost overruns?
Sole-source awards typically require robust justification, often citing unique capabilities or lack of alternatives. Understanding these justifications is key to assessing risk. Mitigation measures for cost overruns in such contracts usually involve stringent performance metrics, phased funding tied to milestones, and potentially independent cost reviews by the agency to ensure the contractor is meeting targets efficiently.
How does the performance and capability of the Joint Air-to-Surface Standoff Missile compare to alternative systems, and does this justify the sole-source procurement?
The effectiveness of the missile system relative to alternatives is paramount in justifying a sole-source award. If the Joint Air-to-Surface Standoff Missile offers unique, indispensable capabilities that cannot be replicated by other systems, then the sole-source approach might be validated. Evaluating its performance metrics, such as range, accuracy, payload, and survivability against threats, compared to competing systems is essential for determining its true value and necessity.
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: $879,098,980
Exercised Options: $878,755,916
Current Obligation: $878,755,916
Actual Outlays: $18,134,257
Subaward Activity
Number of Subawards: 692
Total Subaward Amount: $2,660,223,912
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-03-31
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-16
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