DoD Awards $15.3M for Tactical Tomahawk Development to Lockheed Martin
Contract Overview
Contract Amount: $15,299,651 ($15.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2005-08-02
End Date: 2010-10-03
Contract Duration: 1,888 days
Daily Burn Rate: $8.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200511!352416!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0034 !A!N! !N! ! !20050802!20060630!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000002876777!N!N!000014683147!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A2 !MISSILE AND SPACE SYSTEMS !289 !TACTICAL TOMAHAWK !541690!E! !3! ! ! ! ! !20200930!B! ! !A! !B!U!U!1!001!N!4A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y!1719!N00019!0001! !
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200511!352416!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0034 !A!N! !N! ! !20050802!20060630!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANA… Key points: 1. Contract awarded for Tactical Tomahawk missile system development. 2. Sole-source award to Lockheed Martin Corporation, raising competition concerns. 3. Significant taxpayer investment in advanced defense technology. 4. Contract duration of 1888 days indicates a long-term project.
Value Assessment
Rating: fair
The contract value of $15.3 million is for a Cost Plus Fixed Fee type, which can lead to cost overruns. Benchmarking is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the development of this defense system.
Public Impact
Enhances U.S. naval strike capabilities with advanced missile technology. Supports high-tech manufacturing jobs within the defense sector. Represents a significant investment in national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can increase risk of cost overruns.
- Long contract duration may not reflect current market efficiencies.
Positive Signals
- Award to a known prime contractor for a critical defense system.
- Contract supports development of advanced missile technology.
Sector Analysis
This contract falls within the Defense sector, specifically for missile and space systems development. Spending in this area is critical for national security but requires careful oversight due to high costs and specialized nature.
Small Business Impact
No information is available regarding small business participation in this contract. Sole-source awards often bypass opportunities for small business subcontracting.
Oversight & Accountability
The contract is managed by the Naval Air Systems Command. Oversight is crucial given the sole-source nature and cost-plus fee structure to ensure fair pricing and effective execution.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- Potential for cost overruns
- Long contract duration
Tags
other-scientific-and-technical-consultin, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to LOCKHEED MARTIN CORPORATION. 200511!352416!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0034 !A!N! !N! ! !20050802!20060630!019710586!019710586!834951691!N!LOCKHEED MARTIN CORPORATION !9500 GODWIN DR !MANASSAS !VA!20110!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000002876777!N!N!000014683147!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A2 !MISSILE AND SPACE SYSTEMS !289 !TACTICAL TOMAHAWK !541690!E! !3! ! ! ! ! !202
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 $15.3 million.
What is the period of performance?
Start: 2005-08-02. End: 2010-10-03.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The government should have conducted a price reasonableness analysis, comparing the proposed costs to historical data or independent cost estimates, to mitigate the risks associated with limited competition.
How does the cost-plus fixed fee structure impact the overall cost and risk for this development project?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it incentivizes the contractor to control costs to maximize their fee, it shifts much of the cost risk to the government, especially if the initial cost estimates are inaccurate or scope creep occurs.
What are the key performance indicators and milestones for this development contract, and how are they being tracked?
Key performance indicators and milestones would likely focus on technical performance of the Tactical Tomahawk, adherence to development schedules, and successful testing phases. The Naval Air Systems Command would be responsible for tracking progress against these metrics through regular reporting and program reviews.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-08-02
Current End Date: 2010-10-03
Potential End Date: 2010-10-03 00:00:00
Last Modified: 2016-07-15
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