DoD awards $177.6M LRASM Lot 3 contract to Lockheed Martin, citing no competition
Contract Overview
Contract Amount: $177,557,670 ($177.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-04-07
End Date: 2024-04-30
Contract Duration: 1,484 days
Daily Burn Rate: $119.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: LONG RANGE ANTI-SHIP MISSILE (LRASM) LOT 3
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $177.6 million to LOCKHEED MARTIN CORPORATION for work described as: LONG RANGE ANTI-SHIP MISSILE (LRASM) LOT 3 Key points: 1. Significant investment in advanced missile technology. 2. Sole-source award raises questions about price discovery. 3. Potential for cost overruns due to fixed-price incentive structure. 4. Focus on strategic defense capabilities within the aerospace sector.
Value Assessment
Rating: fair
The contract value of $177.6 million for LRASM Lot 3 appears substantial. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess its value against industry benchmarks. The fixed-price incentive (FPI) structure suggests an attempt to control costs, but the lack of competition complicates a direct pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. This approach limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement. The justification for sole-source is not provided but is often based on unique capabilities or existing program integration.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the LRASM system, as there was no market pressure to drive down prices.
Public Impact
Enhances U.S. Navy and Air Force long-range strike capabilities. Supports deterrence against peer adversaries. Contributes to the defense industrial base and high-tech manufacturing jobs. Potential for future upgrades and integration with other platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Fixed-price incentive contract can lead to cost overruns if not managed carefully.
- Lack of transparency in justification for sole-source procurement.
Positive Signals
- Acquisition of critical long-range anti-ship missile capability.
- Supports strategic deterrence objectives.
- Contract awarded to a known prime contractor with existing expertise.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the aerospace and defense industry. Spending in this area is driven by national security needs and technological advancements. Benchmarks are difficult to establish due to the specialized nature of advanced weaponry.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. As a sole-source award to a large prime contractor, opportunities for small business participation may be limited to subcontracting roles, depending on Lockheed Martin's sourcing strategies.
Oversight & Accountability
The Department of Defense, specifically the Department of the Air Force, is the awarding agency. Oversight would typically involve program management reviews, contract performance monitoring, and audits to ensure compliance with contract terms and responsible use of funds, especially given the 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 and price discovery.
- Potential for cost overruns under Fixed Price Incentive contract.
- Lack of transparency regarding justification for sole-source.
- High value contract requires robust oversight.
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 $177.6 million to LOCKHEED MARTIN CORPORATION. LONG RANGE ANTI-SHIP MISSILE (LRASM) LOT 3
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 $177.6 million.
What is the period of performance?
Start: 2020-04-07. End: 2024-04-30.
What is the specific justification provided by the Department of Defense for awarding this LRASM Lot 3 contract on a sole-source basis, and how does it align with federal procurement regulations for n
The provided data does not include the specific justification for the sole-source award. Federal regulations (like FAR Part 6) typically require justification for non-competitive procurements, often citing unique capabilities, urgent needs, or lack of sources. Without this justification, it's impossible to assess its validity or adherence to regulations, raising concerns about transparency and potential missed opportunities for competition.
How does the unit cost or total program cost for LRASM Lot 3 compare to similar long-range anti-ship missile systems, either domestically or internationally, to assess value for money?
A direct comparison of unit cost is challenging without detailed cost breakdowns and specific performance metrics for comparable systems. The $177.6 million award for Lot 3, without competition, makes it difficult to benchmark against market prices. Assessing value requires comparing LRASM's capabilities, range, payload, and survivability against other available systems and their associated costs.
What are the key performance metrics and milestones for LRASM Lot 3, and how will their achievement be measured to ensure effectiveness and justify the investment?
The data does not specify the key performance metrics or milestones for LRASM Lot 3. Effectiveness is typically measured through rigorous testing, operational deployment feedback, and demonstrated capability against intended targets. The fixed-price incentive contract structure implies that meeting specific performance targets is linked to payment, but the details of these targets and their measurement are crucial for assessing effectiveness and contractor accountability.
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
Solicitation ID: FA868219R0003
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $177,557,670
Exercised Options: $177,557,670
Current Obligation: $177,557,670
Actual Outlays: $1,356,928
Subaward Activity
Number of Subawards: 236
Total Subaward Amount: $702,372,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-04-07
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2024-04-04
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