DoD Awards $1.11 Billion for Joint Air-to-Surface Standoff Missile Lot 19 to Lockheed Martin
Contract Overview
Contract Amount: $1,114,540,146 ($1.1B)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-02-22
End Date: 2028-01-30
Contract Duration: 2,533 days
Daily Burn Rate: $440.0K/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 19
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $1.11 billion to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE LOT 19 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 contract duration (2021-2028) suggests a sustained need for this capability. 4. Focus on guided missile manufacturing highlights a critical defense sector.
Value Assessment
Rating: fair
The total award value is substantial. Without comparable contract data or detailed cost breakdowns, assessing the pricing against similar missile systems or previous lots is challenging. The firm-fixed-price structure provides some cost certainty.
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 potentially leads to higher costs compared to a competitive bidding process. The rationale for sole-sourcing should be clearly documented.
Taxpayer Impact: Taxpayers may bear a higher cost due to the lack of competition. The necessity and effectiveness of the missile system must justify this expenditure.
Public Impact
Enhances U.S. Air Force's standoff strike capabilities. Supports advanced defense technology development and production. Potential impact on geopolitical deterrence and military readiness. Long-term commitment to a single supplier for a critical weapon system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
- Long contract duration
Positive Signals
- Critical defense capability
- Firm-fixed-price contract
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a key component of the defense industrial base. Spending in this area is driven by national security needs and technological advancements. Benchmarks are difficult without specific program data.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct small business participation.
Oversight & Accountability
Oversight will be crucial to ensure the effective use of funds and the timely delivery of a capable missile system. The Department of Defense's contracting oversight mechanisms will be key to managing this sole-source award.
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.
- Potential for cost overruns without competitive pressure.
- Long contract duration may not reflect evolving threats or technologies.
- Lack of transparency on specific cost breakdowns.
- Limited visibility into small business participation.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.11 billion to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE LOT 19
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 $1.11 billion.
What is the period of performance?
Start: 2021-02-22. End: 2028-01-30.
What is the justification for the sole-source award, and has a thorough market research been conducted to confirm no other viable sources exist?
The justification for a sole-source award is critical for ensuring fair pricing and maximizing taxpayer value. Agencies must conduct comprehensive market research to identify potential sources and demonstrate why only one source can meet the requirement. Without this information, it's difficult to assess if the government received the best possible offer or if competition was unnecessarily excluded.
How does the per-unit cost of this missile lot compare to previous lots or similar systems, and what cost-saving measures are in place?
Comparing the per-unit cost is essential for evaluating value for money, especially in sole-source contracts. Analysis should include trends from previous contract lots and benchmarks against comparable systems. The firm-fixed-price contract offers some cost control, but ongoing monitoring and negotiation are vital to ensure costs remain reasonable and reflect any efficiencies gained.
What are the specific performance metrics and delivery schedules for this contract, and how will their achievement be monitored?
Clear performance metrics and delivery schedules are fundamental to ensuring the effectiveness of this significant investment. The Department of Defense must have robust monitoring systems in place to track progress, identify potential delays, and ensure the missile system meets all technical and operational requirements. Accountability for meeting these targets is paramount.
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: FA868221R0001
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: $1,114,540,146
Exercised Options: $1,114,540,146
Current Obligation: $1,114,540,146
Subaward Activity
Number of Subawards: 526
Total Subaward Amount: $628,546,271
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-02-22
Current End Date: 2028-01-30
Potential End Date: 2028-01-30 00:00:00
Last Modified: 2025-12-16
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