DoD Awards $18.4M for Missile Development Engineering Support to Lockheed Martin
Contract Overview
Contract Amount: $18,418,504 ($18.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-03-23
End Date: 2026-07-31
Contract Duration: 1,591 days
Daily Burn Rate: $11.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DEVELOPMENT ENGINEERING SUPPORT 4.0
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: DEVELOPMENT ENGINEERING SUPPORT 4.0 Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Lockheed Martin, a major defense contractor. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on guided missile and space vehicle manufacturing sector.
Value Assessment
Rating: fair
The $18.4 million contract is for development engineering support. Without specific comparable contracts for similar niche services, a precise pricing assessment is difficult. However, Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not closely managed.
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 competition, potentially leading to a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being used for this sole-source award, with limited transparency on whether the best possible price was achieved due to the lack of competition.
Public Impact
Supports advanced missile and space vehicle technology development. Impacts national security through defense capabilities enhancement. Funds a major defense contractor, potentially influencing market dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
- Long contract duration (over 4 years) increases exposure to changing economic conditions.
Positive Signals
- Supports critical defense technology development.
- Leverages established expertise of a prime defense contractor.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical area for national defense. Spending in this niche sector is often characterized by high R&D costs and specialized expertise requirements, with significant government investment.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication in the data that small businesses were involved in this specific sole-source award, suggesting limited direct impact on the small business sector for this contract.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight will be crucial to manage costs under the Cost Plus Fixed Fee structure and ensure the successful delivery of development engineering support for missile systems.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Long contract duration
- Potential for cost escalation
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. DEVELOPMENT ENGINEERING SUPPORT 4.0
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 $18.4 million.
What is the period of performance?
Start: 2022-03-23. End: 2026-07-31.
What specific development engineering tasks are included in this contract, and how do they align with current Air Force priorities?
The contract focuses on development engineering support for guided missile and space vehicles. While the specific tasks are not detailed, they likely encompass design, testing, integration, and technical analysis crucial for advancing these defense capabilities. Alignment with Air Force priorities would necessitate a review of their strategic modernization plans for missile systems.
What is the rationale for awarding this contract on a sole-source basis, and what steps are being taken to mitigate potential cost overruns?
The rationale for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. To mitigate cost overruns in this Cost Plus Fixed Fee contract, the Air Force must implement rigorous oversight, detailed cost tracking, and performance metrics to ensure efficient resource utilization and adherence to the fixed fee.
How will the success of this development engineering support be measured, and what are the key performance indicators for this contract?
Success will likely be measured by the timely completion of engineering milestones, the technical performance of developed systems, and adherence to budget constraints. Key performance indicators could include meeting specified design requirements, successful prototype testing, and effective problem resolution throughout the development lifecycle.
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: $19,696,828
Exercised Options: $18,823,658
Current Obligation: $18,418,504
Actual Outlays: $1,625,509
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,860,932
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: 2022-03-23
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-07-30
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