DoD's $19.9M JEMS 9.0 Contract Awarded to Lockheed Martin Raises Questions on Competition and Value
Contract Overview
Contract Amount: $19,961,301 ($20.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-03-22
End Date: 2022-07-20
Contract Duration: 850 days
Daily Burn Rate: $23.5K/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 ENTERPRISE MANAGEMENT SYSTEM, JEMS 9.0
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $20.0 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE ENTERPRISE MANAGEMENT SYSTEM, JEMS 9.0 Key points: 1. The $19.9 million contract for JEMS 9.0 was awarded to Lockheed Martin Corporation. 2. This contract falls under the Guided Missile and Space Vehicle Manufacturing sector. 3. The award method was 'NOT COMPETED', indicating a lack of competitive bidding. 4. The contract type is 'COST PLUS FIXED FEE', which can lead to cost overruns.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, coupled with a lack of competition, makes it difficult to assess value. The awarded amount of $19.9 million needs further benchmarking against similar enterprise management systems to determine if it represents a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for this enterprise management system.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on this system for critical missile enterprise management. The long duration of the contract (850 days) warrants close monitoring of performance and costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Awarded to a known defense contractor
- Specific system for missile enterprise management
Sector Analysis
This contract is within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area within defense. Spending benchmarks for enterprise management systems in this niche are not readily available, but competitive awards typically yield better pricing.
Small Business Impact
There is no indication that small businesses were involved in this contract award. The focus appears to be on a large, established prime contractor.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding competitive sourcing. Further review is needed to understand why this contract was not opened to competition.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency on justification for sole-source 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 $20.0 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE ENTERPRISE MANAGEMENT SYSTEM, JEMS 9.0
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 $20.0 million.
What is the period of performance?
Start: 2020-03-22. End: 2022-07-20.
What was the justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as unique capabilities or urgent needs. Without this information, it's impossible to assess if alternative solutions were explored or if this was the only viable option, impacting the government's ability to secure the best value.
What are the specific performance metrics and cost controls in place for this Cost Plus Fixed Fee contract?
The provided data does not detail specific performance metrics or cost controls for this Cost Plus Fixed Fee contract. This contract type carries inherent risks of cost escalation. Robust oversight, clear performance standards, and regular audits are crucial to mitigate these risks and ensure the government receives value for its investment.
How does the $19.9 million cost compare to similar enterprise management systems, and what is the long-term cost projection?
Benchmarking the $19.9 million cost against similar enterprise management systems is challenging without more specific details on the system's scope and functionality. The Cost Plus Fixed Fee structure also introduces uncertainty regarding long-term costs. A thorough cost-benefit analysis and ongoing cost tracking are essential to understand the true financial impact.
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: $19,970,859
Exercised Options: $19,970,859
Current Obligation: $19,961,301
Actual Outlays: $1,830,161
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-03-22
Current End Date: 2022-07-20
Potential End Date: 2022-07-20 00:00:00
Last Modified: 2026-01-05
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