DoD Awards $1.6B for Joint Air-to-Surface Standoff Missile (JASSM) to Lockheed Martin
Contract Overview
Contract Amount: $16,018,971 ($16.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-17
End Date: 2026-09-30
Contract Duration: 1,079 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $16.0 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM) Key points: 1. Significant contract value of $1.6 billion for advanced missile systems. 2. Sole-source award to Lockheed Martin, limiting competitive pricing opportunities. 3. Potential risk associated with reliance on a single supplier for critical defense assets. 4. Spending concentrated in the Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar missile system contracts is difficult due to the specialized nature and sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition may prevent the government from securing the best possible price and terms.
Taxpayer Impact: The absence of competition in this sole-source award could result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Enhances U.S. Air Force's long-range strike capabilities. Supports national defense objectives by providing advanced weaponry. Potential for technology advancements in guided missile systems. Economic impact on Lockheed Martin and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Cost Plus Fixed Fee contract type carries cost overrun risk.
- Long contract duration (over 3 years) increases exposure to market fluctuations.
Positive Signals
- Provides critical defense capability.
- Award to established defense contractor with proven technology.
Sector Analysis
This contract 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 specialized production, with limited competition due to technological barriers.
Small Business Impact
No information is available regarding small business participation in this contract. Sole-source awards often have less direct impact on small businesses unless they are subcontractors to the prime.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust monitoring to control costs and ensure performance objectives are met.
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 Fixed Fee contract type.
- Lack of transparency on unit cost.
- Long contract duration.
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 $16.0 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE (JASSM)
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 $16.0 million.
What is the period of performance?
Start: 2023-10-17. End: 2026-09-30.
What is the projected unit cost for the JASSM missile under this contract, and how does it compare to previous awards or similar systems?
The provided data does not include a specific unit cost or breakdown for the JASSM missiles. Benchmarking is challenging due to the sole-source nature of this award and the specialized technology involved. Further analysis would require access to detailed cost data and comparisons with other advanced missile programs, considering their respective capabilities and production scales.
What are the specific risks associated with a sole-source award for a critical defense asset like the JASSM, particularly regarding long-term sustainment and technological obsolescence?
A sole-source award for critical defense assets like the JASSM poses risks including potential price inflation over time, reduced incentive for the contractor to innovate or improve efficiency, and vulnerability if the sole supplier faces production issues or goes out of business. Long-term sustainment and upgrades may also be more costly without competitive pressure, and the government could be locked into older technology if the contractor does not prioritize modernization.
How effective is the Cost Plus Fixed Fee contract type in ensuring value for money for taxpayers on advanced missile development and production?
The Cost Plus Fixed Fee (CPFF) contract type aims to provide flexibility for complex projects with uncertain costs, like advanced missile development. However, it places a significant portion of the cost risk on the government. While the fixed fee provides some incentive for the contractor to control costs, effective oversight is crucial to prevent cost overruns and ensure the government receives good value. Without strong oversight, CPFF contracts can be less cost-effective than fixed-price alternatives.
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: $17,009,525
Exercised Options: $17,009,525
Current Obligation: $16,018,971
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,583,233
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA868219D0013
IDV Type: IDC
Timeline
Start Date: 2023-10-17
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-13
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