DoD Awards $122M for THAAD Evolutionary Development to Lockheed Martin, focusing on R&D
Contract Overview
Contract Amount: $122,187,876 ($122.2M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2025-03-01
End Date: 2030-02-28
Contract Duration: 1,825 days
Daily Burn Rate: $67.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THAAD EVOLUTIONARY DEVELOPMENT
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Defense obligated $122.2 million to LOCKHEED MARTIN CORP for work described as: THAAD EVOLUTIONARY DEVELOPMENT Key points: 1. Significant investment in advanced missile defense technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long-term contract (5 years) indicates ongoing program needs. 4. R&D focus suggests potential for future technological advancements and cost efficiencies.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific unit costs, but the overall value is substantial for R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this large R&D contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports high-tech R&D jobs within the defense sector. Potential for technological spin-offs benefiting other industries. Long-term commitment signals sustained focus on strategic defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Focus on critical R&D
- Experienced contractor
- Addresses national security needs
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but requires careful oversight to ensure value for money.
Small Business Impact
The awardee is Lockheed Martin Corp, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense and the Missile Defense Agency to ensure cost control and effective execution of R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for scope creep in R&D
- Long-term duration may not reflect evolving needs
- Lack of transparency in pricing due to no competition
Tags
research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $122.2 million to LOCKHEED MARTIN CORP. THAAD EVOLUTIONARY DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $122.2 million.
What is the period of performance?
Start: 2025-03-01. End: 2030-02-28.
What specific R&D objectives does this contract aim to achieve, and how will their successful completion be measured?
The contract focuses on the evolutionary development of the THAAD system. Specific objectives likely include enhancing interceptor capabilities, improving sensor integration, and developing countermeasures against evolving threats. Success will be measured through rigorous testing, performance metrics defined in the SOW, and milestone achievements aligned with the program's strategic goals.
Given the sole-source award, what mechanisms are in place to ensure fair pricing and prevent cost overruns?
As a Cost Plus Fixed Fee contract, robust oversight is critical. Mechanisms likely include detailed cost accounting, regular audits, performance-based incentives tied to R&D milestones, and strong negotiation by the contracting officer to manage the fixed fee component and scrutinize indirect costs.
How does this evolutionary development align with broader DoD strategies for missile defense, and what is the anticipated long-term impact?
This contract supports the DoD's strategy to maintain a multi-layered missile defense architecture capable of countering diverse threats. The evolutionary approach allows for adaptation to new intelligence and technological advancements, ensuring the THAAD system remains effective against future challenges and contributes to overall strategic deterrence.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ085323R0002
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1111 LOCKHEED MARTIN WAY, SUNNYVALE, CA, 94089
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $666,990,742
Exercised Options: $666,990,742
Current Obligation: $122,187,876
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ085325D0001
IDV Type: IDC
Timeline
Start Date: 2025-03-01
Current End Date: 2030-02-28
Potential End Date: 2030-02-28 00:00:00
Last Modified: 2026-01-13
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