DoD's $121M LR-ASM Phase 1 aims to develop long-range anti-ship missile for mission kill capabilities
Contract Overview
Contract Amount: $121,209,702 ($121.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-07-16
End Date: 2013-04-05
Contract Duration: 1,359 days
Daily Burn Rate: $89.2K/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 MISSILE (LR-ASM) PHASE 1 - THIS EFFORT SEEKS TO DEVELOP AND DEMONSTRATE A SHIP LAUNCHED, STANDOFF, ANTI-SHIP STRIKE WEAPON CAPABLE OF ACHIEVING MISSION KILL AGAINST SELECTIVE SURFACE TARGETS AT SIGNIFICANT STANDOFF RANGES.
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $121.2 million to LOCKHEED MARTIN CORPORATION for work described as: LONG RANGE ANTI-SHIP MISSILE (LR-ASM) PHASE 1 - THIS EFFORT SEEKS TO DEVELOP AND DEMONSTRATE A SHIP LAUNCHED, STANDOFF, ANTI-SHIP STRIKE WEAPON CAPABLE OF ACHIEVING MISSION KILL AGAINST SELECTIVE SURFACE TARGETS AT SIGNIFICANT STANDOFF RANGES. Key points: 1. The project focuses on developing a critical standoff weapon for naval defense. 2. Lockheed Martin is the sole contractor, raising questions about competition. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. This R&D effort falls under the physical sciences sector, crucial for national security.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while common for R&D, offers less incentive for cost control compared to fixed-price contracts. Benchmarking against similar missile development programs is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive process initially. However, only one awardee is listed, which warrants further investigation into the bidding process and the number of proposals received.
Taxpayer Impact: Taxpayer funds are being invested in advanced defense technology, with the ultimate goal of enhancing national security and deterring potential adversaries.
Public Impact
Enhances naval warfare capabilities by providing a standoff strike weapon. Contributes to the development of advanced defense technologies for national security. Potential for technological advancements to be adapted for other defense applications. Supports high-tech research and development jobs within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of detailed cost breakdown for benchmarking
- Potential for cost overruns due to contract type
Positive Signals
- Development of critical long-range anti-ship missile capability
- Awarded under full and open competition
- Addresses a significant defense need
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences, specifically focusing on advanced weapon systems. Defense R&D spending benchmarks vary widely, but significant investments are typical for cutting-edge military technology development.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. There is no information provided on subcontracting opportunities for small businesses in this phase.
Oversight & Accountability
The contract is managed by the Department of Defense through the Defense Contract Management Agency. Oversight would typically involve monitoring technical progress, cost expenditures, and adherence to contract terms throughout the R&D lifecycle.
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
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Limited visibility into the competitive bidding process beyond the single awardee.
- Lack of detailed cost breakdown hinders robust benchmarking.
- No indication of small business participation in this phase.
Tags
research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.2 million to LOCKHEED MARTIN CORPORATION. LONG RANGE ANTI-SHIP MISSILE (LR-ASM) PHASE 1 - THIS EFFORT SEEKS TO DEVELOP AND DEMONSTRATE A SHIP LAUNCHED, STANDOFF, ANTI-SHIP STRIKE WEAPON CAPABLE OF ACHIEVING MISSION KILL AGAINST SELECTIVE SURFACE TARGETS AT SIGNIFICANT STANDOFF RANGES.
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 $121.2 million.
What is the period of performance?
Start: 2009-07-16. End: 2013-04-05.
What was the competitive landscape during the full and open competition phase, and why did only one contractor submit a successful bid?
While the contract was awarded under 'full and open competition,' the data only shows one awardee, Lockheed Martin Corporation. Further analysis would be needed to understand the number of proposals received, the evaluation criteria, and the reasons why other potential bidders did not secure the award. This could indicate a highly specialized technology area or potential barriers to entry for competitors.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness and potential for cost overruns in this long-range missile development?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While CPFF is suitable for R&D where scope can be uncertain, it offers less incentive for the contractor to control costs compared to fixed-price contracts. This structure can increase the risk of cost overruns if development challenges lead to higher-than-anticipated expenses, requiring close government oversight of expenditures.
What are the key performance metrics and milestones for Phase 1, and how will their achievement be measured to ensure effective development of the LR-ASM?
The provided data does not detail specific performance metrics or milestones for Phase 1. Effective oversight would require clearly defined technical objectives, such as demonstrated range, accuracy, and target kill capability, along with a schedule for achieving these. The Defense Contract Management Agency would be responsible for monitoring progress against these metrics and ensuring the contractor meets the contract's research and development goals.
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 › C – National Defense R&D Services
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: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $168,473,108
Exercised Options: $168,473,108
Current Obligation: $121,209,702
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-07-16
Current End Date: 2013-04-05
Potential End Date: 2013-04-05 00:00:00
Last Modified: 2020-05-11
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