DoD awards $227.7M for LRASM, a Lockheed Martin R&D contract with 9 modifications
Contract Overview
Contract Amount: $227,726,660 ($227.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-06-29
End Date: 2017-04-20
Contract Duration: 2,852 days
Daily Burn Rate: $79.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LONG RANGE ANTI-SHIP MISSLE (LRASM) PROGRAM.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $227.7 million to LOCKHEED MARTIN CORPORATION for work described as: LONG RANGE ANTI-SHIP MISSLE (LRASM) PROGRAM. Key points: 1. The LRASM program, focused on advanced missile development, represents a significant investment in defense capabilities. 2. Lockheed Martin, a major defense contractor, holds this contract, indicating a concentrated market for such advanced weaponry. 3. The contract's R&D nature suggests inherent risks associated with technological development and potential cost overruns. 4. Spending in the Physical, Engineering, and Life Sciences R&D sector is crucial for maintaining technological superiority.
Value Assessment
Rating: fair
The total award of $227.7 million over its life, with 9 modifications, suggests a dynamic development process. Without specific per-unit cost data for the missile itself, a direct pricing comparison is difficult, but the Cost Plus Fixed Fee structure implies costs were managed within a negotiated fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific nature of advanced missile R&D might limit the number of truly competitive bids.
Taxpayer Impact: While competition was sought, the ultimate taxpayer impact depends on the efficiency of the R&D process and the final effectiveness of the LRASM system.
Public Impact
Enhances U.S. naval strike capabilities against advanced threats. Supports technological advancement in guided missile systems. Potential for job creation within the defense industry and related R&D sectors. Contributes to national security by deterring potential adversaries.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost overruns in R&D projects are common.
- Technological obsolescence of developed systems.
- Dependence on a single prime contractor.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical defense capability gap.
- Contract modifications indicate ongoing development and adaptation.
Sector Analysis
This contract falls within the Research and Development in Physical, Engineering, and Life Sciences sector, specifically R&D for advanced weaponry. Benchmarks for R&D contracts vary widely, but significant investments are typical for cutting-edge defense technologies.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no explicit information on small business participation, suggesting potential limited subcontracting opportunities for smaller firms in this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Oversight would focus on R&D progress, cost control, and adherence to contract terms to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to R&D complexity.
- Risk of technological obsolescence.
- Dependence on a single large contractor.
- Limited visibility into specific R&D milestones and outcomes.
- Uncertainty regarding the effectiveness against future threats.
Tags
research-and-development-in-the-physical, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $227.7 million to LOCKHEED MARTIN CORPORATION. LONG RANGE ANTI-SHIP MISSLE (LRASM) PROGRAM.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $227.7 million.
What is the period of performance?
Start: 2009-06-29. End: 2017-04-20.
What is the projected operational cost and lifespan of the LRASM system post-development?
The provided data focuses solely on the R&D contract award and modifications, not the full lifecycle costs or operational details of the LRASM system. Determining the total taxpayer impact requires further analysis of sustainment, deployment, and maintenance expenses over the system's intended lifespan.
How does the LRASM's performance compare to alternative or existing anti-ship missile systems in terms of effectiveness and cost?
Effectiveness comparisons are difficult without classified performance data. However, the LRASM is designed to counter advanced Integrated Air Defense Systems (IADS) where legacy missiles may struggle. Its development cost, while significant, is justified by the need for a survivable standoff weapon against peer adversaries.
What specific technological advancements does the LRASM program aim to achieve, and what are the key risks associated with these advancements?
The LRASM aims for enhanced stealth, range, and target discrimination capabilities, likely incorporating AI for autonomous targeting. Key risks include the complexity of integrating these advanced features, potential for unforeseen technical hurdles during development, and the possibility that adversaries could develop countermeasures faster than anticipated.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 W SAND LAKE RD MP125, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $227,916,206
Exercised Options: $227,916,206
Current Obligation: $227,726,660
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-06-29
Current End Date: 2017-04-20
Potential End Date: 2017-04-20 00:00:00
Last Modified: 2019-03-25
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