DoD Awards $24.1M for JASSM Missile Production to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $24,119,892 ($24.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-31
End Date: 2026-03-31
Contract Duration: 424 days
Daily Burn Rate: $56.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM) ITIK BUY 3
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM) ITIK BUY 3 Key points: 1. Significant contract value for advanced missile system. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Defense sector spending on strategic weapon systems.
Value Assessment
Rating: questionable
The contract value of $24.1M for JASSM missile production is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous JASSM contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was considered. This limits price discovery and may not yield the best value for taxpayers.
Taxpayer Impact: The lack of competition could lead to inflated prices, meaning taxpayers may be paying more than necessary for these missiles.
Public Impact
Ensures continued production of a key strategic weapon for the Air Force. Supports advanced defense capabilities for national security. Potential impact on defense contractor market dynamics due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing without competitive bids.
- Potential for cost overruns if not closely monitored.
Positive Signals
- Secures critical defense capabilities.
- Supports established defense industrial base.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending in this area is often driven by national security needs and technological advancements.
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 in the provided data.
Oversight & Accountability
Oversight will be crucial to ensure the sole-source award does not result in excessive costs and that the delivered missiles meet all specifications. The Department of Defense's contracting oversight mechanisms will be key.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency on pricing justification
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 $24.1 million to LOCKHEED MARTIN CORPORATION. JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM) ITIK BUY 3
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 $24.1 million.
What is the period of performance?
Start: 2025-01-31. End: 2026-03-31.
What is the justification for the sole-source award, and has a market research report been conducted to confirm no other capable vendors exist?
The justification for a sole-source award typically involves specific circumstances, such as unique capabilities, urgent needs, or lack of viable alternatives. A thorough market research report is essential to validate these claims and ensure taxpayers receive fair value. Without this information, the decision to bypass competition raises concerns about potential cost inefficiencies.
How does the per-unit cost of this JASSM contract compare to previous awards or similar missile systems from other manufacturers?
Benchmarking the per-unit cost against historical JASSM contracts or comparable missile systems from competitors is vital for assessing value. A sole-source award makes this comparison challenging, as there's no direct competitive pricing to reference. The agency should provide cost data or justification if available to demonstrate reasonableness.
What measures are in place to ensure the effectiveness and timely delivery of the JASSM missiles under this contract, given the lack of competitive pressure?
With a sole-source contract, robust performance monitoring and clear delivery schedules are paramount. The Department of Defense must implement stringent oversight to ensure Lockheed Martin meets all technical specifications and delivery timelines. Performance incentives or penalties could be considered to maintain accountability and ensure mission readiness.
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: FA868222R1031
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: $24,230,657
Exercised Options: $24,119,892
Current Obligation: $24,119,892
Actual Outlays: $724,083
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $10,875,900
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: 2025-01-31
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-02-28
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)