DoD Awards $62M Contract for HALO Support to Lockheed Martin, Amidst Ammunition Manufacturing Needs
Contract Overview
Contract Amount: $62,003,908 ($62.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-03-27
End Date: 2024-12-31
Contract Duration: 645 days
Daily Burn Rate: $96.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HALO SUPPORT - PHASE 1
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93599
Plain-Language Summary
Department of Defense obligated $62.0 million to LOCKHEED MARTIN CORPORATION for work described as: HALO SUPPORT - PHASE 1 Key points: 1. Contract Value: $62,003,908 for ammunition manufacturing support. 2. Primary Contractor: Lockheed Martin Corporation, a major defense industry player. 3. Competition: Awarded under full and open competition. 4. Sector: Defense, specifically ammunition manufacturing.
Value Assessment
Rating: good
The contract value of $62M appears reasonable for specialized ammunition support services. Benchmarking against similar large-scale defense manufacturing contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense materiel, with the competitive award process aiming to ensure efficient use of these resources.
Public Impact
Ensures continued availability of critical ammunition for naval operations. Supports a major defense contractor, potentially impacting employment and supply chains. Highlights ongoing investment in defense readiness and materiel sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term support contracts.
- Dependence on a single supplier for critical components.
- Geopolitical factors impacting supply chain stability.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Supports critical national defense requirements.
Sector Analysis
This contract falls within the defense sector, specifically focusing on ammunition manufacturing. Spending in this area is often driven by national security needs and geopolitical events, with benchmarks varying significantly based on the type and quantity of munitions.
Small Business Impact
While the primary contractor is Lockheed Martin, a large corporation, the contract may indirectly involve small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy's oversight is crucial for ensuring contract performance, adherence to specifications, and responsible use of funds. Regular reporting and performance reviews are standard oversight mechanisms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration extends into late 2024, requiring ongoing monitoring.
- Potential for scope creep in subsequent phases of HALO SUPPORT.
- Dependence on specific manufacturing capabilities for ammunition.
- Supply chain vulnerabilities for raw materials or components.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.0 million to LOCKHEED MARTIN CORPORATION. HALO SUPPORT - PHASE 1
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 $62.0 million.
What is the period of performance?
Start: 2023-03-27. End: 2024-12-31.
What is the specific type of ammunition being supported, and how does this impact its unit cost benchmark?
The data indicates the North American Industry Classification System (NAICS) code 332993, which covers Ammunition (except Small Arms) Manufacturing. The specific type of ammunition is not detailed, but this category includes artillery shells, mortar rounds, and other larger caliber munitions. Unit cost benchmarks for these items can vary dramatically based on caliber, explosive fill, guidance systems, and production volume. Without more specificity, a precise benchmark is difficult to establish, but costs can range from hundreds to tens of thousands of dollars per unit.
What are the primary risks associated with a firm fixed-price contract for ammunition support, and how are they mitigated?
The primary risk with a firm fixed-price (FFP) contract is that the contractor may face unforeseen cost increases in materials, labor, or production challenges, potentially leading to reduced profit margins or quality compromises if not managed carefully. Mitigation strategies include robust initial cost estimation, clear contract specifications, performance incentives, and strong government oversight to ensure quality and timely delivery. The government's risk is primarily that the fixed price might be higher than actual costs if the contractor is highly efficient.
How does the 'HALO SUPPORT - PHASE 1' designation influence the assessment of contract effectiveness and future spending?
The 'Phase 1' designation suggests this is an initial stage of a larger effort, implying that the effectiveness assessment should be viewed in the context of future phases. If Phase 1 successfully meets its objectives (e.g., establishing support mechanisms, initial production runs), it bodes well for overall effectiveness. However, it also signals potential for significant follow-on spending, making the initial contract's cost-efficiency and performance critical indicators for future budget allocations and program success.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0001922R0080
Offers Received: 4
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: $62,003,908
Exercised Options: $62,003,908
Current Obligation: $62,003,908
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $338,741
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865621DA022
IDV Type: IDC
Timeline
Start Date: 2023-03-27
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-12-17
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