DoD Awards Lockheed Martin $759M for Ballistic Missile Defense Systems Development

Contract Overview

Contract Amount: $75,910,153 ($75.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2002-02-19

End Date: 2008-06-30

Contract Duration: 2,323 days

Daily Burn Rate: $32.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 200205!021129!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002402C5321 !A!N! !N! !20020219!20070331!848028494!150049880!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000002254456!N!N!000263918122!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A2 !MISSILE AND SPACE SYSTEMS !2CAA!BALLISTIC MISSILE DEFENSE SYS !334511!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!U!R!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001!

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057, UNITED STATES OF AMERICA

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $75.9 million to LOCKHEED MARTIN CORPORATION for work described as: 200205!021129!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002402C5321 !A!N! !N! !20020219!20070331!848028494!150049880!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLI… Key points: 1. Significant contract awarded to a major defense contractor for critical missile defense technology. 2. The contract value is substantial, indicating a high-priority program for the Department of Defense. 3. Potential for long-term sustainment and follow-on contracts exists given the nature of defense systems. 4. The sector is characterized by high R&D investment and long development cycles.

Value Assessment

Rating: good

The contract value of $759M over approximately 6 years suggests a significant investment. Pricing will be assessed against similar R&D contracts for advanced defense systems, considering the complexity and specialized nature of ballistic missile defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the specialized nature of the technology and the contractor's existing role or expertise. This limits price discovery and may result in higher costs compared to a competitive environment.

Taxpayer Impact: Taxpayer funds are directed towards a critical national security program, with potential for cost efficiencies to be explored through contract management and oversight.

Public Impact

Enhances national security by advancing ballistic missile defense capabilities. Supports high-tech jobs within the defense industry, particularly in New Jersey. Contributes to the development of advanced technologies with potential dual-use applications. Represents a significant investment in maintaining a technological edge in missile defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs.
Long contract duration could introduce cost overruns.
Reliance on a single contractor for critical technology.

Positive Signals

Addresses a critical national security need.
Supports advanced technological development.
Potential for innovation in missile defense systems.

Sector Analysis

This contract falls within the Research, Development, Test, and Evaluation (RDTE) category for Missile and Space Systems. Spending in this sector is typically high due to the complexity and strategic importance of defense technologies.

Small Business Impact

This contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no immediate indication of subcontracting opportunities for small businesses within the provided data, though this is common in large defense contracts.

Oversight & Accountability

The contract is managed by the Naval Sea Systems Command and the Defense Contract Management Agency. Oversight will focus on ensuring technical performance, cost control, and adherence to contract terms throughout the development and manufacturing phases.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of Competition
Cost Overruns
Technological Obsolescence
Program Delays
Sole-Source Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.9 million to LOCKHEED MARTIN CORPORATION. 200205!021129!1700!BZ005 !NAVAL SEA SYSTEMS COMMAND !N0002402C5321 !A!N! !N! !20020219!20070331!848028494!150049880!834951691!N!LOCKHEED MARTIN CORPORATION !199 BORTON LANDING ROAD !MOORESTOWN !NJ!08057!47850!005!34!MOORESTOWN !BURLINGTON !NEW JERSEY!+000002254456!N!N!000263918122!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A2 !MISSILE AND SPACE SYSTEMS !2CAA!BALLISTIC MISSILE DEFENSE SYS !334511!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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $75.9 million.

What is the period of performance?

Start: 2002-02-19. End: 2008-06-30.

What is the projected return on investment for this ballistic missile defense system development?

The return on investment for this contract is primarily measured in enhanced national security and deterrence, rather than direct financial returns. The effectiveness of the system in preventing missile attacks is the key metric. Quantifying this in monetary terms is challenging but crucial for justifying the significant expenditure.

What are the key risks associated with the sole-source nature of this contract?

The primary risk of a sole-source contract is the potential for inflated pricing due to a lack of competitive pressure. Additionally, it can lead to contractor complacency, reduced innovation, and a dependency on a single supplier for critical technology, which poses a supply chain risk.

How will the effectiveness of the developed ballistic missile defense system be measured?

Effectiveness will be measured through rigorous testing, simulations, and performance evaluations against defined technical requirements and threat scenarios. Key performance indicators will likely include interception rates, system response times, reliability, and integration with existing defense architectures.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 199 BORTON LANDING RD, MOORESTOWN, NJ, 08057

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline