DoD Awards $18.4M for Joint Air-to-Surface Missile Support to Lockheed Martin
Contract Overview
Contract Amount: $18,401,361 ($18.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-11-06
End Date: 2024-08-15
Contract Duration: 1,013 days
Daily Burn Rate: $18.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR TO SURFACE STANDOFF MISSILE ENGINEERING SUPPORT 4.0 - PRODUCTION
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE ENGINEERING SUPPORT 4.0 - PRODUCTION Key points: 1. Significant contract value for specialized engineering support. 2. Sole-source award to Lockheed Martin, raising competition concerns. 3. High-risk area due to reliance on a single contractor. 4. Sector: Defense - Guided Missile Manufacturing.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not closely managed. Benchmarking against similar engineering support contracts for complex weapon systems is difficult without more detailed cost breakdowns.
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 lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this essential engineering support.
Public Impact
Ensures continued operational readiness of critical air-to-surface standoff missiles. Supports advanced defense capabilities for the U.S. Air Force. Potential for cost inefficiencies due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Limited transparency on cost drivers
Positive Signals
- Critical defense system support
- Long-term engagement with incumbent provider
Sector Analysis
This contract falls within the defense sector, specifically guided missile manufacturing. Spending in this area is critical for national security but requires rigorous oversight to ensure value for money, especially in sole-source situations.
Small Business Impact
There is no indication of small business participation in this specific contract award. The nature of specialized defense engineering support often involves large prime contractors, potentially limiting opportunities for smaller businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and effective performance. Robust auditing of costs under the CPFF structure is essential.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited visibility into cost drivers
- Reliance on a single supplier
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE ENGINEERING SUPPORT 4.0 - PRODUCTION
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 $18.4 million.
What is the period of performance?
Start: 2021-11-06. End: 2024-08-15.
What is the justification for the sole-source award, and were alternative competition strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. The Department of Defense should have documented the rationale and explored options like phased competition or limited competition to ensure the best possible pricing and value for taxpayers.
How is the 'fixed fee' component of the Cost Plus Fixed Fee contract determined to ensure it reflects fair profit?
The fixed fee is usually negotiated based on the complexity of the work, the contractor's performance history, and market rates for similar services. Regular reviews and audits are necessary to ensure the fee remains fair and proportionate to the value delivered, preventing excessive profit margins.
What performance metrics are in place to ensure the effectiveness of the engineering support provided?
Effectiveness is likely measured through milestones, technical performance reviews, delivery schedules, and adherence to quality standards. The Air Force should have specific KPIs tied to missile system readiness, reliability improvements, and successful integration of engineering changes or upgrades.
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
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: $19,942,990
Exercised Options: $19,942,990
Current Obligation: $18,401,361
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $4,108,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868217D0002
IDV Type: IDC
Timeline
Start Date: 2021-11-06
Current End Date: 2024-08-15
Potential End Date: 2024-08-15 00:00:00
Last Modified: 2025-08-14
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