DoD Awards $6M+ for JASSM GNC Systems to Lockheed Martin, Raising Oversight Concerns
Contract Overview
Contract Amount: $6,046,539 ($6.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-23
End Date: 2026-04-22
Contract Duration: 729 days
Daily Burn Rate: $8.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JASSM GUIDANCE, NAVIGATION, AND CONTROL (GNC) 2024
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $6.0 million to LOCKHEED MARTIN CORPORATION for work described as: JASSM GUIDANCE, NAVIGATION, AND CONTROL (GNC) 2024 Key points: 1. Significant contract value for specialized missile components. 2. Sole-source award to Lockheed Martin limits competitive pricing. 3. Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Focus on advanced GNC systems highlights critical defense technology.
Value Assessment
Rating: questionable
The contract value of $6,046,539 for JASSM GNC systems appears high given the 'Other Guided Missile and Space Vehicle Parts' NAICS code. Without competitive bidding, it's difficult to benchmark against similar contracts.
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 limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The absence of competition for this sole-source award raises concerns about taxpayer value, as the government may be paying a premium for these critical missile components.
Public Impact
Taxpayers may be overpaying for essential missile guidance technology due to a lack of competition. The Department of Defense relies on Lockheed Martin for advanced GNC systems, creating a dependency. The contract duration of 729 days suggests a long-term need for these components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
- No small business participation
Positive Signals
- Critical defense technology acquisition
- Long-term contract for sustained supply
Sector Analysis
This contract falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in this specialized defense manufacturing area is often characterized by high R&D costs and limited supplier bases, making competitive bidding challenging but crucial.
Small Business Impact
There is no indication of small business participation in this contract. Given the specialized nature of the work and the sole-source award to a large corporation, opportunities for small businesses appear to be absent.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. The Department of Defense should justify the lack of competition and monitor contract performance diligently.
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 lacks competition
- Cost Plus Fixed Fee contract type increases cost risk
- No small business participation noted
- Potential for price inflation due to lack of competitive pressure
- Limited transparency on pricing justification
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, fl, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.0 million to LOCKHEED MARTIN CORPORATION. JASSM GUIDANCE, NAVIGATION, AND CONTROL (GNC) 2024
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 $6.0 million.
What is the period of performance?
Start: 2024-04-23. End: 2026-04-22.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single contractor. The Department of Defense should provide documentation supporting this determination. To ensure fair pricing, they should conduct thorough cost analyses, benchmark against historical data if available, and negotiate aggressively on profit margins and indirect costs.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this acquisition, and how are they being mitigated?
The primary risk of a CPFF contract is that the contractor has less incentive to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns. Mitigation strategies include robust government oversight of incurred costs, detailed performance metrics, and clear definitions of allowable expenses to prevent scope creep and ensure efficiency.
How does the acquisition of these JASSM GNC systems contribute to the overall effectiveness and readiness of the Air Force's missile capabilities?
The Guidance, Navigation, and Control (GNC) systems are critical for the precision and effectiveness of the Joint Air-to-Surface Standoff Missile (JASSM). Ensuring a reliable supply of these advanced components directly supports the Air Force's ability to deploy standoff munitions accurately, enhancing its strategic reach and operational effectiveness in various mission scenarios.
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: $9,525,034
Exercised Options: $6,333,539
Current Obligation: $6,046,539
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: 2024-04-23
Current End Date: 2026-04-22
Potential End Date: 2026-04-22 00:00:00
Last Modified: 2025-12-11
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