DoD awards $54.7M for Conventional Prompt Global Strike Payload Delivery Vehicle to Lockheed Martin
Contract Overview
Contract Amount: $54,678,861 ($54.7M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2008-08-26
End Date: 2013-04-30
Contract Duration: 1,708 days
Daily Burn Rate: $32.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONVENTIONAL PROMPT GLOBAL STRIKE (CPGS) PAYLOAD DELIVERY VEHICLE(PDV)
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $54.7 million to LOCKHEED MARTIN CORP for work described as: CONVENTIONAL PROMPT GLOBAL STRIKE (CPGS) PAYLOAD DELIVERY VEHICLE(PDV) Key points: 1. Significant investment in advanced missile technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Contract duration of nearly 5 years suggests complex development. 4. Focus on payload delivery vehicle for strategic capabilities.
Value Assessment
Rating: questionable
The contract value of $54.7M for a payload delivery vehicle is difficult to assess without specific performance metrics or comparable systems. The cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially increases costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this significant defense contract may result in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Enhances strategic deterrence capabilities. Supports advanced missile development programs. Potential for technological advancements in payload delivery. Impacts national security posture.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Strategic capability development
- Advanced technology investment
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical area for defense spending. Benchmarks for similar complex weapon system development contracts are often in the hundreds of millions or billions.
Small Business Impact
There is no indication of small business participation in this contract, which is a sole-source award to a large prime contractor. Future subcontracting opportunities for small businesses are not specified.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective program execution. Accountability for cost and schedule performance will be crucial.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency on technological advancements
- No small business participation noted
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.7 million to LOCKHEED MARTIN CORP. CONVENTIONAL PROMPT GLOBAL STRIKE (CPGS) PAYLOAD DELIVERY VEHICLE(PDV)
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $54.7 million.
What is the period of performance?
Start: 2008-08-26. End: 2013-04-30.
What specific technological advancements does this payload delivery vehicle offer compared to existing systems?
The specific technological advancements are not detailed in the provided data. However, the 'Conventional Prompt Global Strike' designation suggests a focus on rapid, long-range conventional strike capabilities, potentially involving advanced propulsion, guidance, or stealth technologies to overcome existing defenses and deliver payloads with high precision and speed.
What are the primary risks associated with a sole-source, cost-plus fixed fee contract for a complex weapon system?
The primary risks include potential cost overruns due to the cost-plus nature, where the contractor is reimbursed for allowable costs plus a fixed fee. A sole-source award eliminates competitive pressure, potentially leading to higher prices and reduced incentive for efficiency. There's also a risk of scope creep and less rigorous performance standards without a competitive baseline.
How does this contract contribute to the overall effectiveness of the Department of Defense's strategic capabilities?
This contract contributes to the effectiveness of DoD's strategic capabilities by developing a new platform for conventional prompt global strike. This aims to provide commanders with a flexible, rapid response option against high-value targets anywhere in the world, potentially deterring adversaries and enhancing overall military readiness and power projection.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $83,038,366
Exercised Options: $83,038,366
Current Obligation: $54,678,861
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-08-26
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2021-06-25
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