DoD Awards $36.9M Lockheed Martin Contract for Joint Air-to-Surface Missile Software Development
Contract Overview
Contract Amount: $36,924,021 ($36.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-07
End Date: 2026-03-06
Contract Duration: 364 days
Daily Burn Rate: $101.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT AIR TO SURFFACE STANDOFF MISSILE- THE CONTRACTOR SHALL DEVELOP AND MODIFY CURRENT SOFTWARE IN ACCORDANCE WITH THE STATEMENT OF OBJECTIVES DATED 02 OCTOBER 2024.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $36.9 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO SURFFACE STANDOFF MISSILE- THE CONTRACTOR SHALL DEVELOP AND MODIFY CURRENT SOFTWARE IN ACCORDANCE WITH THE STATEMENT OF OBJECTIVES DATED 02 OCTOBER 2024. Key points: 1. Contract focuses on software development and modification for a critical missile system. 2. Sole-source award to Lockheed Martin raises questions about competition and potential cost savings. 3. The fixed-fee structure on a cost-plus contract introduces some risk for the government. 4. Spending is within the 'Other Guided Missile and Space Vehicle Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific cost breakdowns, but the total award value of $36.9M for software development over one year suggests a significant investment.
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 limits price discovery and may result in higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition could mean taxpayers are not receiving the best possible price for this software development effort.
Public Impact
Enhances capabilities of a key defense asset, impacting national security. Software updates are crucial for maintaining technological superiority in defense systems. Potential for cost overruns due to the cost-plus fixed-fee contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost risk.
- Lack of detailed cost breakdown hinders value assessment.
Positive Signals
- Addresses critical software needs for a vital weapon system.
- Contract awarded to a known prime contractor with relevant expertise.
Sector Analysis
This contract falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is often characterized by high R&D costs and specialized production, with significant government oversight required.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight will be critical to ensure the cost-plus fixed-fee structure does not lead to excessive spending and that the software modifications meet the stated objectives.
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 contract type
- Potential for scope creep
- Lack of competition
- Limited visibility into detailed cost breakdown
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 $36.9 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO SURFFACE STANDOFF MISSILE- THE CONTRACTOR SHALL DEVELOP AND MODIFY CURRENT SOFTWARE IN ACCORDANCE WITH THE STATEMENT OF OBJECTIVES DATED 02 OCTOBER 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 $36.9 million.
What is the period of performance?
Start: 2025-03-07. End: 2026-03-06.
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 held by the contractor. To ensure fair pricing, the government should conduct a thorough price analysis, potentially using historical data or independent cost estimates, and closely monitor the contractor's cost reporting throughout the contract performance period.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this software development effort?
The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. If costs escalate beyond initial projections, the government bears the burden. This necessitates stringent oversight of contractor expenditures and performance to prevent cost overruns and ensure the fixed fee remains appropriate for the effort.
How will the effectiveness of the software modifications be measured to ensure they meet the Statement of Objectives?
Effectiveness will be measured through rigorous testing and validation processes defined in the contract's Statement of Objectives (SOO) and subsequent technical documentation. This includes performance metrics, functional testing, integration testing with the missile system, and user acceptance testing by the Air Force to confirm the modifications achieve the desired operational capabilities and improvements.
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: $37,201,289
Exercised Options: $36,924,021
Current Obligation: $36,924,021
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: 2025-03-07
Current End Date: 2026-03-06
Potential End Date: 2026-03-06 00:00:00
Last Modified: 2025-12-17
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