DoD Awards $176M for Tomahawk Missile Systems R&D to Lockheed Martin
Contract Overview
Contract Amount: $28,901,231 ($28.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2003-06-25
End Date: 2012-09-30
Contract Duration: 3,385 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: 200309!000023!1700!AT717 !NAVAL AIR SYSTEMS COMMAND !N0001903C0349 !A!N! !N! !20030625!20031215!176325579!176325579!834951691!N!LOCKHEED MARTIN CORPORATION !230 MALL BLVD !KING OF PRUSSI !PA!19406!79576!029!42!VALLEY FORGE !CHESTER !PENN !+000004282537!N!N!000006050430!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !2CNY!BGM-109 TOMAHAWK !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!L!2!002!A! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! ! !0001! !
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19101
Plain-Language Summary
Department of Defense obligated $28.9 million to LOCKHEED MARTIN CORPORATION for work described as: 200309!000023!1700!AT717 !NAVAL AIR SYSTEMS COMMAND !N0001903C0349 !A!N! !N! !20030625!20031215!176325579!176325579!834951691!N!LOCKHEED MARTIN CORPORATION !230 MALL BLVD !KING OF PRUSSI !PA!19406!79576!029!42!VALLEY FORGE !CHEST… Key points: 1. Significant investment in advanced missile technology. 2. Dominant defense contractor Lockheed Martin secures major award. 3. Potential for cost overruns or schedule delays exists. 4. Focus on R&D within the aerospace and defense sector.
Value Assessment
Rating: good
The contract value of $176,325,579 appears reasonable for advanced missile system research and development. Benchmarking against similar large-scale R&D contracts for complex weapon systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, though the specific price discovery mechanisms are not detailed.
Taxpayer Impact: Taxpayer funds are supporting critical defense research, aiming for technological superiority. The long-term value depends on the successful development and deployment of the Tomahawk system.
Public Impact
Enhances national defense capabilities through advanced missile technology. Supports high-skilled jobs in engineering and manufacturing. Contributes to the technological competitiveness of the U.S. defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Long-term R&D projects can face scope creep.
- Reliance on a single prime contractor for critical systems.
Positive Signals
- Awarded under full and open competition.
- Focus on critical defense R&D.
- Experienced contractor with a track record.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on missile and space systems research and development. Spending in this area is driven by national security priorities and technological advancement.
Small Business Impact
While the prime contractor is Lockheed Martin, the contract may involve subcontracts to small businesses for specialized components or services. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy's Naval Air Systems Command is responsible for oversight. Regular reporting and milestone reviews are standard for such R&D contracts to ensure accountability and track progress.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns in R&D.
- Schedule delays due to technical complexity.
- Long-term reliance on specific technologies.
- Cybersecurity risks in advanced systems development.
Tags
engineering-services, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.9 million to LOCKHEED MARTIN CORPORATION. 200309!000023!1700!AT717 !NAVAL AIR SYSTEMS COMMAND !N0001903C0349 !A!N! !N! !20030625!20031215!176325579!176325579!834951691!N!LOCKHEED MARTIN CORPORATION !230 MALL BLVD !KING OF PRUSSI !PA!19406!79576!029!42!VALLEY FORGE !CHESTER !PENN !+000004282537!N!N!000006050430!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !2CNY!BGM-109 TOMAHAWK !541330!E! !3! ! ! ! ! !99990909!B
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 Navy).
What is the total obligated amount?
The obligated amount is $28.9 million.
What is the period of performance?
Start: 2003-06-25. End: 2012-09-30.
What are the key performance metrics for this R&D contract, and how will their achievement be measured?
Key performance metrics likely include successful prototype development, system integration, testing milestones, and adherence to technical specifications for the BGM-109 Tomahawk system. Measurement will involve rigorous testing, engineering reviews, and progress reports submitted by Lockheed Martin, overseen by the Naval Air Systems Command to ensure the research objectives are met within the defined scope and timeline.
What are the primary technical risks associated with developing advanced missile and space systems under this contract?
Primary technical risks include unforeseen challenges in materials science, propulsion systems, guidance and control technologies, and integration of new components. The complexity of advanced missile systems means that novel solutions may be required, increasing the possibility of design flaws, performance issues, or integration difficulties that could impact schedule and cost.
How does this investment in Tomahawk missile R&D align with current and future strategic defense objectives?
This investment likely aligns with strategic objectives focused on maintaining a credible deterrent, projecting power, and adapting to evolving geopolitical threats. Enhancing the capabilities of the Tomahawk system, a key component of naval and air power, ensures the U.S. maintains a technological edge and can respond effectively to a range of contingencies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 230 MALL BLVD, KING OF PRUSSI, PA
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-06-25
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2011-08-30
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