DoD Awards $5.68 Billion for Long Range Anti-Ship Missiles to Lockheed Martin
Contract Overview
Contract Amount: $5,685,763,042 ($5.7B)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2031-07-31
Contract Duration: 2,498 days
Daily Burn Rate: $2.3M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LONG RANGE ANTI-SHIP MISSILE/JOINT AIR-TO-SURFACE STANDOFF MISSILE LARGE LOT PROCUREMENT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $5.69 billion to LOCKHEED MARTIN CORPORATION for work described as: LONG RANGE ANTI-SHIP MISSILE/JOINT AIR-TO-SURFACE STANDOFF MISSILE LARGE LOT PROCUREMENT Key points: 1. Significant investment in critical defense capability. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long-term contract (2024-2031) indicates sustained demand. 4. Focus on guided missile manufacturing sector.
Value Assessment
Rating: fair
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to potential alternatives. Benchmarking against similar missile procurements would be necessary for a full valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition in this large procurement may result in taxpayers paying a premium for these missiles.
Public Impact
Enhances naval and air force standoff strike capabilities. Supports advanced missile technology development and production. Impacts geopolitical deterrence in maritime theaters. Secures critical defense supply chain for long-range munitions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- High dollar value
Positive Signals
- Critical defense capability
- Advanced technology
- Long-term supply
Sector Analysis
This procurement falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often characterized by high R&D costs and long production cycles.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this large sole-source contract. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and performance. Robust contract management will be essential throughout its duration.
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 price competition.
- Long contract duration increases exposure to market changes.
- High contract value represents significant financial commitment.
- Potential for vendor lock-in.
- Dependency on a single manufacturer for critical capability.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.69 billion to LOCKHEED MARTIN CORPORATION. LONG RANGE ANTI-SHIP MISSILE/JOINT AIR-TO-SURFACE STANDOFF MISSILE LARGE LOT PROCUREMENT
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 $5.69 billion.
What is the period of performance?
Start: 2024-09-27. End: 2031-07-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense should have a documented rationale, and oversight mechanisms should be in place to scrutinize costs, potentially through cost realism analyses and audits, to mitigate the risks associated with limited competition and ensure taxpayer value.
How does the per-unit cost of this missile compare to similar systems procured competitively?
Without competitive bidding, a direct per-unit cost comparison is challenging. However, an analysis could be performed by benchmarking against publicly available data for similar anti-ship missiles from other nations or previous DoD procurements that involved competition. This would help identify potential cost deviations and inform future negotiation strategies.
What are the long-term strategic implications of relying on a single supplier for this critical weapon system?
Relying on a single supplier for a critical weapon system like the Long Range Anti-Ship Missile creates a dependency that could pose strategic risks. It could limit future technological advancements if the supplier's innovation pace slows, and it makes the supply chain vulnerable to disruptions affecting that specific company. Diversification or strategic partnerships might be considered for future procurements.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD, 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: $9,578,865,257
Exercised Options: $9,578,865,257
Current Obligation: $5,685,763,042
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $1,142,661,459
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-09-27
Current End Date: 2031-07-31
Potential End Date: 2031-07-31 00:00:00
Last Modified: 2025-11-19
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