DoD Awards $164M to Lockheed Martin for Joint Air-to-Surface Missile Targeting Modules
Contract Overview
Contract Amount: $16,431,298 ($16.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-01-13
End Date: 2026-04-17
Contract Duration: 825 days
Daily Burn Rate: $19.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR TO SURFACE STANDOFF MISSILE PRECISION TARGETING MODULE.
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFACE STANDOFF MISSILE PRECISION TARGETING MODULE. Key points: 1. Significant contract value awarded to a single, established defense contractor. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Focus on advanced missile technology highlights critical defense sector spending.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure allows for cost reimbursement plus a fixed fee, which can incentivize contractors to increase costs. Without competitive bidding, it's difficult to benchmark pricing against similar contracts.
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 offer the best price.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these missile targeting modules.
Public Impact
Enhances precision targeting capabilities for critical air-to-surface munitions. Supports ongoing modernization efforts within the U.S. Air Force. Contributes to national defense readiness and strategic deterrence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Lack of transparency in pricing due to no-bid nature.
Positive Signals
- Award supports critical defense capabilities.
- Contractor is a major defense industry player.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on guided missile components. Spending in this area is driven by national security needs and technological advancements in weaponry.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific contract action, suggesting limited opportunities for small businesses.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight will be crucial to ensure cost control and performance under the Cost Plus Fixed Fee structure, especially given the sole-source nature.
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
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of competitive pricing benchmark
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 $16.4 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFACE STANDOFF MISSILE PRECISION TARGETING MODULE.
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 $16.4 million.
What is the period of performance?
Start: 2024-01-13. End: 2026-04-17.
What is the justification for the sole-source award of this critical missile component?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. A thorough review of the justification documentation is necessary to assess its validity and ensure it aligns with federal procurement regulations.
How will the government ensure cost-effectiveness with a Cost Plus Fixed Fee contract for this sole-source award?
Ensuring cost-effectiveness involves robust government oversight, including detailed cost audits, performance monitoring, and negotiation of the fixed fee. The government should establish clear performance metrics and milestones to incentivize efficiency and prevent unnecessary cost escalation throughout the contract duration.
What is the long-term strategic value of investing in these specific targeting modules?
The long-term strategic value lies in enhancing the precision and effectiveness of standoff munitions, thereby improving mission success rates and reducing collateral damage. These modules contribute to maintaining a technological edge in air-to-surface warfare capabilities, crucial for national security and deterrence.
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: $25,456,343
Exercised Options: $16,431,298
Current Obligation: $16,431,298
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $170,772
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: 2024-01-13
Current End Date: 2026-04-17
Potential End Date: 2026-04-17 00:00:00
Last Modified: 2025-06-04
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