DoD Awards $34.7M to Lockheed Martin for JASSM M-CODE Test and Integration

Contract Overview

Contract Amount: $34,713,316 ($34.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2022-07-27

End Date: 2026-02-28

Contract Duration: 1,312 days

Daily Burn Rate: $26.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JASSM M-CODE TEST AND INTEGRATION

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $34.7 million to LOCKHEED MARTIN CORPORATION for work described as: JASSM M-CODE TEST AND INTEGRATION Key points: 1. Contract awarded to a single, established defense contractor. 2. Focus on testing and integration suggests potential for future production contracts. 3. Risk of cost overruns inherent in cost-plus contracts. 4. Sector is high-tech defense manufacturing, critical for national security.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar missile integration contracts is difficult without more specific cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the specialized nature of JASSM missile integration and the existing relationship with Lockheed Martin. This lack of competition may limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for specialized defense system development. Without competition, ensuring the best possible price for the government is a concern.

Public Impact

Enhances capabilities of advanced air-to-ground missiles. Supports national defense readiness and technological superiority. Investment in complex weapons systems development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition.
  • Cost-plus contract type carries inherent cost overrun risk.
  • Limited public data on specific integration tasks.

Positive Signals

  • Supports critical defense technology development.
  • Contract awarded to a major defense contractor with proven capabilities.

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-value segment of the defense industry. Spending in this area is driven by national security needs and technological advancements.

Small Business Impact

This contract was awarded directly to Lockheed Martin Corporation and does not indicate any subcontracting opportunities for small businesses in the provided data. Further investigation into subcontracting plans would be needed.

Oversight & Accountability

The Department of the Air Force is the awarding agency. Oversight will be critical to manage costs under the Cost Plus Fixed Fee structure and ensure successful integration of the JASSM M-CODE.

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 contract type
  • Potential for cost overruns
  • Limited transparency on specific integration tasks

Tags

guided-missile-and-space-vehicle-manufac, department-of-defense, fl, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.7 million to LOCKHEED MARTIN CORPORATION. JASSM M-CODE TEST AND INTEGRATION

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 $34.7 million.

What is the period of performance?

Start: 2022-07-27. End: 2026-02-28.

What specific integration tasks are included in this contract, and how do they contribute to the overall JASSM program's value?

The contract focuses on testing and integration of the M-CODE capability for the Joint Air-to-Surface Standoff Missile (JASSM). This likely involves software integration, hardware compatibility testing, and performance validation to ensure the missile can effectively utilize the M-CODE's advanced guidance and targeting features, thereby enhancing its operational effectiveness and survivability in contested environments.

Given the sole-source nature and cost-plus contract type, what are the primary risks to the government regarding cost and schedule?

The primary risks include potential cost overruns due to the cost-plus structure, where the contractor is reimbursed for allowable costs plus a fixed fee. Without competition, there's less incentive for the contractor to aggressively control costs. Schedule risks could arise from unforeseen technical challenges during integration or testing, potentially delaying the deployment of the enhanced JASSM capability.

How does the successful integration of M-CODE via this contract impact the effectiveness of the JASSM missile system?

Successful integration of M-CODE is expected to significantly enhance the JASSM's effectiveness by providing improved navigation, targeting, and electronic warfare resistance. This advanced capability allows the missile to operate more reliably in GPS-denied or contested environments, increasing its probability of hitting targets and its overall survivability, thereby bolstering air power projection capabilities.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided 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: 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: $35,879,855

Exercised Options: $35,879,855

Current Obligation: $34,713,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2022-07-27

Current End Date: 2026-02-28

Potential End Date: 2026-02-28 00:00:00

Last Modified: 2026-02-20

More Contracts from Lockheed Martin Corporation

View all Lockheed Martin Corporation federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending