DoD awards Lockheed Martin $251M for Trident II (D5) SWS Navigation Subsystem SD&D and ESGN Refresh
Contract Overview
Contract Amount: $251,265,531 ($251.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-08-03
End Date: 2018-12-31
Contract Duration: 3,072 days
Daily Burn Rate: $81.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: TRIDENT II (D5) STRATEGIC SYSTEMS PROGRAMS (SSP) SHIPBOARD INTEGRATION (SSI) STRATEGIC WEAPON SYSTEM (SWS) NAVIGATION SUBSYSTEM SYSTEMS DESIGN AND DEVELOPMENT (SD&D) AND ELECTROSTATICALLY SUPPORTED GYRO NAVIGATOR (ESGN) REFRESH
Place of Performance
Location: UNIONDALE, NASSAU County, NEW YORK, 11553
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $251.3 million to LOCKHEED MARTIN CORPORATION for work described as: TRIDENT II (D5) STRATEGIC SYSTEMS PROGRAMS (SSP) SHIPBOARD INTEGRATION (SSI) STRATEGIC WEAPON SYSTEM (SWS) NAVIGATION SUBSYSTEM SYSTEMS DESIGN AND DEVELOPMENT (SD&D) AND ELECTROSTATICALLY SUPPORTED GYRO NAVIGATOR (ESGN) REFRESH Key points: 1. Significant investment in critical strategic weapon system navigation technology. 2. Sole provider Lockheed Martin holds a dominant position in this specialized defense sector. 3. High program cost and long duration present potential cost overrun risks. 4. Focus on system design and development suggests future sustainment needs.
Value Assessment
Rating: questionable
The contract type (Cost Plus Incentive Fee) allows for cost overruns, and the high total award value of $251M for design and development warrants scrutiny. Benchmarking is difficult due to the unique nature of strategic weapon systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under full and open competition, but the specialized nature of the Trident II (D5) system likely limits the number of capable bidders. This can impact price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayer funds are directed towards maintaining and upgrading a critical component of the nation's nuclear deterrent, ensuring its continued operational effectiveness.
Public Impact
Ensures the continued reliability and effectiveness of the US nuclear triad. Supports high-tech jobs within the defense industrial base. Contributes to national security and strategic deterrence capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Cost Plus Incentive Fee contract type
- Long contract duration
- Sole source potential for future phases
Positive Signals
- Critical national security program
- Advanced technology development
- Experienced contractor
Sector Analysis
This contract falls within the Defense Industrial Base, specifically focusing on advanced navigation systems for strategic missile programs. Spending benchmarks are difficult to establish due to the unique and classified nature of such systems.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the specialized nature of this contract, it is unlikely that small businesses would be primary contractors, though they may be subcontractors.
Oversight & Accountability
The Department of Defense, through its various agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial given the program's criticality and cost.
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
- Cost Overruns
- Technological Obsolescence
- Supply Chain Disruptions
- Security Vulnerabilities
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $251.3 million to LOCKHEED MARTIN CORPORATION. TRIDENT II (D5) STRATEGIC SYSTEMS PROGRAMS (SSP) SHIPBOARD INTEGRATION (SSI) STRATEGIC WEAPON SYSTEM (SWS) NAVIGATION SUBSYSTEM SYSTEMS DESIGN AND DEVELOPMENT (SD&D) AND ELECTROSTATICALLY SUPPORTED GYRO NAVIGATOR (ESGN) REFRESH
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 $251.3 million.
What is the period of performance?
Start: 2010-08-03. End: 2018-12-31.
What is the projected lifecycle cost of the ESGN refresh and its associated systems?
The provided data only covers the design and development phase. A comprehensive lifecycle cost analysis would be necessary to understand the full financial commitment for the ESGN refresh, including production, sustainment, and eventual decommissioning. This information is typically classified due to the strategic nature of the Trident II (D5) program.
What are the specific performance metrics and risk mitigation strategies for this navigation subsystem?
Performance metrics for strategic weapon system navigation are highly classified. However, given the critical role, extensive testing and validation processes are expected. Risk mitigation likely involves redundancy in design, rigorous quality control, and contingency planning for potential technical failures or supply chain disruptions.
How does the technological advancement in this refresh compare to potential adversary capabilities?
The specific technological advancements are classified. However, the continuous refresh of strategic systems like the Trident II (D5) is driven by the need to maintain a credible deterrent against evolving threats. This implies that the upgrades aim to incorporate state-of-the-art technology to counter potential adversary advancements and ensure system survivability and effectiveness.
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: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003010R0018
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 55 CHARLES LINDBERGH BLVD, UNIONDALE, NY, 11553
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $256,611,090
Exercised Options: $256,611,090
Current Obligation: $251,265,531
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $32,412,271
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-08-03
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2023-07-19
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