DoD Awards $195M Contract for Joint Air-to-Surface Standoff Missile to Lockheed Martin
Contract Overview
Contract Amount: $19,533,161 ($19.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-27
End Date: 2026-04-30
Contract Duration: 1,189 days
Daily Burn Rate: $16.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR-TO-SURFACE STANDOFF MISSILE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $19.5 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR-TO-SURFACE STANDOFF MISSILE Key points: 1. Significant contract value for advanced missile system. 2. Sole-source award raises questions about competition and pricing. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on defense sector, specifically guided missile manufacturing.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers as there's no market pressure.
Taxpayer Impact: The lack of competition may result in higher expenditure of taxpayer funds compared to a competitively bid contract.
Public Impact
Enhances Air Force's standoff strike capabilities. Supports advanced defense technology development. Potential impact on geopolitical military balance. Long-term sustainment and upgrade implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- Potential for cost overruns
Positive Signals
- Critical defense capability acquisition
- Long-term contract duration
- Supports advanced technology
Sector Analysis
This contract falls within the defense sector, specifically the manufacturing of guided missiles. Spending in this area is critical for national security but requires vigilant oversight to ensure cost-effectiveness.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this sole-source award. Further analysis would be needed to determine their involvement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and efficient execution. Robust auditing of costs will be essential.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee increases government cost risk.
- Potential for contractor inefficiencies.
- Lack of transparency in pricing.
- Long-term sustainment costs are unknown.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.5 million to LOCKHEED MARTIN CORPORATION. JOINT AIR-TO-SURFACE STANDOFF MISSILE
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 $19.5 million.
What is the period of performance?
Start: 2023-01-27. End: 2026-04-30.
What is the justification for the sole-source award of the Joint Air-to-Surface Standoff Missile contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent need where only one source can fulfill the requirement. Without specific documentation, it's presumed the Air Force determined Lockheed Martin as the only viable provider for this specific missile system at this time.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this missile contract?
Cost Plus Fixed Fee (CPFF) contracts shift a significant portion of the cost risk to the government. While the contractor receives a fixed fee, they are reimbursed for allowable costs. This structure can incentivize cost overruns if not rigorously monitored, as the contractor's profit is fixed regardless of the final cost.
What is the expected effectiveness of the Joint Air-to-Surface Standoff Missile in enhancing combat capabilities?
The Joint Air-to-Surface Standoff Missile (JASSM) is designed to provide aircrews with the capability to attack high-value, well-defended targets from standoff ranges. Its effectiveness is crucial for reducing aircrew exposure to enemy defenses and achieving mission success in complex combat environments.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment 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: $19,545,799
Exercised Options: $19,545,799
Current Obligation: $19,533,161
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,166,418
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868222DB001
IDV Type: IDC
Timeline
Start Date: 2023-01-27
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-10-20
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