DoD awards $29.8M for JASSM C++ VI Software to Lockheed Martin, facing limited competition
Contract Overview
Contract Amount: $29,813,254 ($29.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-02-01
End Date: 2025-09-30
Contract Duration: 1,337 days
Daily Burn Rate: $22.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM), C++ VI SOFTWARE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM), C++ VI SOFTWARE Key points: 1. High contract value for specialized software development. 2. Sole provider Lockheed Martin dominates guided missile manufacturing. 3. Risk of vendor lock-in and potential cost overruns. 4. IT and Defense sectors heavily reliant on such advanced systems.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the JASSM software and Lockheed Martin's existing role. This limits price discovery and potentially increases costs.
Taxpayer Impact: Taxpayer funds are directed to a single, non-competed source, raising concerns about value for money.
Public Impact
Ensures continued development and sustainment of critical missile software. Supports advanced defense capabilities for the U.S. Air Force. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Limited competition
Positive Signals
- Supports critical defense program
- Long-term contract duration
Sector Analysis
This contract falls within the IT and Defense sectors, specifically for software development related to guided missiles. Spending in this area is critical for national security but often involves high costs due to specialized R&D and limited suppliers.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the sole-source nature and the prime contractor, small business participation is likely indirect or minimal.
Oversight & Accountability
The sole-source award and cost-plus nature warrant close oversight to ensure costs are reasonable and performance meets requirements. The Department of Defense should monitor expenditures closely.
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.
- Cost-plus contract type increases cost risk.
- Lack of transparency in pricing.
- Potential for vendor lock-in.
- Limited small business participation.
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 $29.8 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM), C++ VI SOFTWARE
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 $29.8 million.
What is the period of performance?
Start: 2022-02-01. End: 2025-09-30.
What is the estimated total cost if the contract is fully exercised, and how does this compare to similar software development contracts?
The current award is $29.8 million, with an estimated ceiling of $29.8 million. Without detailed cost breakdowns and comparable data for highly specialized defense software, a precise benchmark is difficult. However, cost-plus contracts inherently carry a risk of exceeding initial estimates, making close monitoring essential for taxpayer value.
What are the specific risks associated with a sole-source award for critical defense software like JASSM?
Sole-source awards eliminate competitive pressure, potentially leading to higher prices and reduced innovation. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, making future transitions or negotiations more challenging and costly. This necessitates robust oversight to ensure fair pricing and performance.
How effectively does this contract ensure the continued operational readiness and technological advancement of the JASSM system?
The contract's duration (through September 2025) suggests a commitment to ongoing support and development. However, the effectiveness hinges on Lockheed Martin's performance and the DoD's oversight. Without competition, the incentive for Lockheed Martin to proactively innovate beyond contract requirements might be reduced, relying on DoD direction for advancements.
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: $29,813,254
Exercised Options: $29,813,254
Current Obligation: $29,813,254
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $311,120
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: 2022-02-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-07-30
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