DoD Awards $38.7M to Lockheed Martin for Space Object Tracking Sustainment
Contract Overview
Contract Amount: $38,686,699 ($38.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $106.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PROVIDE SUSTAINMENT SERVICES INCLUDING SOFT/HARDWARE OBSOLESCENCE, DEPOT SUPPORT/REPAIR, CYBER SECURITY ACCREDITATION, LOGISTICS + ENGINEERING SUPPORT OF EXISTING FIELDED WEAPON SYSTEM TO DETECT/TRACK UNKNOWN SPACE OBJECTS
Place of Performance
Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057
Plain-Language Summary
Department of Defense obligated $38.7 million to LOCKHEED MARTIN CORPORATION for work described as: PROVIDE SUSTAINMENT SERVICES INCLUDING SOFT/HARDWARE OBSOLESCENCE, DEPOT SUPPORT/REPAIR, CYBER SECURITY ACCREDITATION, LOGISTICS + ENGINEERING SUPPORT OF EXISTING FIELDED WEAPON SYSTEM TO DETECT/TRACK UNKNOWN SPACE OBJECTS Key points: 1. Sustainment services for a critical space object detection and tracking weapon system. 2. Sole-source award to Lockheed Martin, raising questions about competition and price. 3. High-risk contract type (Cost Plus Incentive Fee) may incentivize cost overruns. 4. Focus on obsolescence management and cybersecurity is crucial for system longevity.
Value Assessment
Rating: questionable
The Cost Plus Incentive Fee (CPIF) contract type can lead to higher costs if not managed tightly. Benchmarking is difficult without comparable sole-source sustainment contracts for similar complex weapon systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a lack of market research or a determination that only Lockheed Martin could provide the necessary specialized sustainment. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The absence of competition may result in higher prices than could be achieved through a competitive process, impacting taxpayer value.
Public Impact
Ensures continued operation of a vital system for national security in space. Addresses potential vulnerabilities from hardware and software obsolescence. Maintains cybersecurity posture for a critical defense asset. Supports ongoing logistics and engineering for the fielded weapon system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- CPIF contract type can lead to cost overruns.
- Potential for vendor lock-in on sustainment services.
Positive Signals
- Addresses critical obsolescence and cybersecurity needs.
- Ensures continuity of operations for a key defense system.
- Provides essential engineering and logistics support.
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced systems for space domain awareness. Spending benchmarks for sustainment of highly specialized weapon systems are often difficult to establish due to unique requirements and limited contractor availability.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The CPIF contract type requires robust oversight to ensure contractor performance and cost control. The Department of the Air Force will need to closely monitor expenditures and adherence to performance incentives.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Potential for cost overruns
- Lack of transparency in price discovery
- Dependency on a single contractor for critical sustainment
Tags
search-detection-navigation-guidance-aer, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.7 million to LOCKHEED MARTIN CORPORATION. PROVIDE SUSTAINMENT SERVICES INCLUDING SOFT/HARDWARE OBSOLESCENCE, DEPOT SUPPORT/REPAIR, CYBER SECURITY ACCREDITATION, LOGISTICS + ENGINEERING SUPPORT OF EXISTING FIELDED WEAPON SYSTEM TO DETECT/TRACK UNKNOWN SPACE OBJECTS
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 $38.7 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
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 stems from unique capabilities or proprietary technology held by a single contractor. For this contract, it's likely tied to Lockheed Martin's specific knowledge of the fielded weapon system. To ensure fair pricing, the government should conduct thorough cost realism analyses and potentially negotiate incentive structures that strongly penalize cost overruns while rewarding efficiency.
What are the primary risks associated with the CPIF contract type for this specific system?
The primary risk with a CPIF contract is that the contractor may not be sufficiently motivated to control costs if the target cost is set too high or the incentive structure is weak. For a complex sustainment program like this, cost overruns could be significant, impacting the overall value for taxpayers. Effective government oversight and clear performance metrics are crucial to mitigate this risk.
How will the effectiveness of the sustainment services be measured to ensure the weapon system remains operational and secure?
Effectiveness will likely be measured through key performance indicators (KPIs) related to system uptime, response times for repairs and obsolescence mitigation, successful cybersecurity accreditation renewals, and timely delivery of engineering and logistics support. Regular performance reviews and adherence to defined service level agreements will be critical for assessing and ensuring the system's continued operational readiness and security.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA882025RB002
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057
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: $59,948,252
Exercised Options: $38,686,699
Current Obligation: $38,686,699
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2025-09-29
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