DoD awards $48.5M to Lockheed Martin for Guided Missile Manufacturing, with no competition
Contract Overview
Contract Amount: $48,538,032 ($48.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-02-15
End Date: 2026-09-30
Contract Duration: 1,688 days
Daily Burn Rate: $28.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ETA
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $48.5 million to LOCKHEED MARTIN CORPORATION for work described as: ETA Key points: 1. Significant contract value of $48.5M awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. Contract spans nearly 5 years, indicating a long-term need for these components. 4. The sector is critical for national defense, but procurement methods warrant scrutiny.
Value Assessment
Rating: questionable
The contract's value of $48.5M for guided missile manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This procurement method limits price discovery and may lead to higher costs for taxpayers as there is no market pressure to offer the best price.
Taxpayer Impact: The absence of competition for a nearly $49M contract suggests potential for increased taxpayer expenditure compared to a competitively awarded contract.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The defense sector relies on advanced manufacturing, and sole-source awards can impact the pace of technological advancement. Long-term contracts without competition can create vendor lock-in, reducing future flexibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration without review
Positive Signals
- Critical defense capability
- Established manufacturer
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of national defense. Spending in this area is often high due to specialized technology and R&D requirements, but competitive procurement is vital to ensure value.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved in this specific procurement, nor is there a stated effort to include them.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is justified and that future procurements in this critical area explore competitive options to maximize taxpayer value.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Long contract duration may limit future flexibility.
- No apparent small business participation.
- Limited transparency on price justification.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.5 million to LOCKHEED MARTIN CORPORATION. ETA
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 $48.5 million.
What is the period of performance?
Start: 2022-02-15. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must conduct thorough market research and price analyses to ensure fair and reasonable pricing, even without competition. Documentation of this justification and analysis is crucial for oversight.
What are the potential risks associated with a long-term, sole-source contract for critical defense components?
Long-term sole-source contracts pose risks such as inflated costs due to lack of competition, potential for complacency from the contractor, and reduced incentive for innovation. There's also a risk of vendor lock-in, making it difficult and costly to switch providers or adopt new technologies in the future, potentially impacting national security readiness.
How does this contract contribute to the overall effectiveness and readiness of the Department of the Navy's missile systems?
This contract ensures the continued supply of essential components for guided missiles and space vehicles, directly supporting the operational readiness of the Navy's platforms. While the sole-source nature raises cost concerns, it may also guarantee timely delivery of specialized, high-quality components necessary for maintaining fleet effectiveness and mission capability.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,538,032
Exercised Options: $48,538,032
Current Obligation: $48,538,032
Subaward Activity
Number of Subawards: 35
Total Subaward Amount: $4,483,560
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0011
IDV Type: BOA
Timeline
Start Date: 2022-02-15
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-11
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