Navy Awards $47.5M for Tomahawk Missile System Parts Under IDIQ Contract
Contract Overview
Contract Amount: $47,548,533 ($47.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-04-22
End Date: 2025-01-31
Contract Duration: 1,745 days
Daily Burn Rate: $27.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS ORDER PROCURES CLIN 0003 SUPPLIES AND SERVICES UNDER TACTICAL TOMAHAWK WEAPON CONTROL SYSTEM INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT N0001920D0017.
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $47.5 million to LOCKHEED MARTIN CORPORATION for work described as: THIS ORDER PROCURES CLIN 0003 SUPPLIES AND SERVICES UNDER TACTICAL TOMAHAWK WEAPON CONTROL SYSTEM INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT N0001920D0017. Key points: 1. This order is for critical components of the Tomahawk Weapon System, a key defense asset. 2. The contract is with Lockheed Martin Corporation, a major defense contractor. 3. The award method was 'Not Competed', raising questions about price discovery. 4. The sector is dominated by large, specialized defense manufacturers.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. Without a competitive process, it's difficult to assess if the $47.5M price represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This award was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these essential missile system parts.
Public Impact
Ensures continued readiness and modernization of the Tomahawk missile system. Supports national defense capabilities and strategic deterrence. Potential for increased costs due to non-competitive award. Impacts the supply chain for advanced defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost-Plus Contract Type
- Potential for Cost Overruns
Positive Signals
- Supports critical defense system
- Long-term contract vehicle
Sector Analysis
This spending falls within the Defense sector, specifically the manufacturing of guided missile parts. Defense spending benchmarks often show high unit costs for specialized, technologically advanced components.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific delivery order.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight would focus on contract performance, cost reporting under the CPFF structure, and adherence to the IDIQ terms.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Cost-Plus Fixed Fee contract type can incentivize higher costs.
- Potential for cost overruns without strong oversight.
- Limited transparency into the sole-source justification.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.5 million to LOCKHEED MARTIN CORPORATION. THIS ORDER PROCURES CLIN 0003 SUPPLIES AND SERVICES UNDER TACTICAL TOMAHAWK WEAPON CONTROL SYSTEM INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT N0001920D0017.
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 $47.5 million.
What is the period of performance?
Start: 2020-04-22. End: 2025-01-31.
What is the justification for not competing this delivery order, and what steps were taken to ensure a fair and reasonable price?
The justification for not competing this order is not provided in the data. Typically, non-competitive awards require a justification and approval (J&A) citing reasons like urgent need or lack of sources. Without this J&A, it's impossible to assess the price reasonableness, as competitive bidding is the primary mechanism for price discovery and ensuring value for taxpayer money.
What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract for missile components, especially when not competed?
CPFF contracts carry inherent risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. When not competed, the government lacks the leverage of competitive pricing, increasing the risk that the contractor may not be incentivized to control costs effectively. This combination can lead to higher-than-necessary expenditures for the defense system.
How does this procurement contribute to the overall effectiveness and readiness of the Tomahawk Weapon System?
This order directly contributes to the effectiveness and readiness of the Tomahawk Weapon System by ensuring the supply of necessary parts and services. The Tomahawk is a crucial long-range, all-weather, subsonic cruise missile used by the U.S. Navy and allied forces, making the continuous availability of its components vital for operational capability and modernization efforts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001920R0005
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,667,100
Exercised Options: $48,667,100
Current Obligation: $47,548,533
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $2,151,443
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920D0017
IDV Type: IDC
Timeline
Start Date: 2020-04-22
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2025-09-29
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