DoD awards $50.4M to Lockheed Martin for Trident II missile integration support
Contract Overview
Contract Amount: $50,451,393 ($50.5M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2017-12-31
Contract Duration: 1,917 days
Daily Burn Rate: $26.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEMS ENGINEERING TECHNICAL AND PROGRAM MANAGEMENT SUPPORT FOR COMMON MISSILE COMPARTMENT/TRIDENT II INTEGRATION PROGRAM.
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Defense obligated $50.5 million to LOCKHEED MARTIN CORP for work described as: SYSTEMS ENGINEERING TECHNICAL AND PROGRAM MANAGEMENT SUPPORT FOR COMMON MISSILE COMPARTMENT/TRIDENT II INTEGRATION PROGRAM. Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on critical missile system integration and program management. 3. Long-term contract duration suggests ongoing program needs. 4. High value indicates significant program investment.
Value Assessment
Rating: fair
The contract value of $50.4M over five years for specialized missile integration support appears reasonable given the complexity and criticality of the Trident II program. Benchmarking against similar high-tech, defense-related engineering services is challenging due to unique program requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The justification for sole-source likely relates to specialized knowledge or existing integration.
Taxpayer Impact: Taxpayer funds are directed to a single contractor without competitive pressure, potentially increasing the overall cost of the program.
Public Impact
Ensures continued operational readiness and modernization of the Trident II submarine-launched ballistic missile system. Supports national security by maintaining critical strategic deterrence capabilities. Funds advanced engineering and program management for a key defense asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration may not reflect current market efficiencies.
Positive Signals
- Supports a critical national security program.
- Leverages established contractor expertise for complex integration.
- Ensures continuity of essential missile system support.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of defense spending. Benchmarks are difficult due to the unique nature of strategic missile systems and the limited number of qualified contractors.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a major defense prime contractor. There is no indication of small business participation in this specific award, which is common for large, sole-source sole-source contracts of this nature.
Oversight & Accountability
Oversight is likely conducted by the Department of the Navy, responsible for the Trident II program. The cost-plus fixed fee structure necessitates close monitoring of costs and performance to ensure value for money.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price negotiation.
- Cost-plus contract type may lead to cost overruns.
- Long contract duration could mask inefficiencies.
- Lack of small business participation.
- High value concentrated with a single large contractor.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.5 million to LOCKHEED MARTIN CORP. SYSTEMS ENGINEERING TECHNICAL AND PROGRAM MANAGEMENT SUPPORT FOR COMMON MISSILE COMPARTMENT/TRIDENT II INTEGRATION PROGRAM.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $50.5 million.
What is the period of performance?
Start: 2012-10-01. End: 2017-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternatives explored?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the need for seamless integration with existing systems where only one contractor possesses the requisite knowledge and experience. For the Trident II program, this likely relates to Lockheed Martin's deep historical involvement and specialized expertise in its complex systems. Alternatives are usually assessed, but may be deemed impractical or detrimental to program continuity.
How does the cost-plus fixed fee structure impact cost control and contractor performance for this critical missile system?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee. While it provides flexibility for evolving requirements, it can reduce the incentive for the contractor to control costs aggressively, as the fee remains constant regardless of actual expenses. Effective oversight is crucial to scrutinize costs and ensure performance targets are met within the overall budget.
What is the long-term strategic value and potential obsolescence risk associated with continued investment in the Trident II integration program?
The Trident II system remains a cornerstone of U.S. strategic deterrence, providing significant long-term strategic value. However, like any aging platform, there are risks of technological obsolescence and increasing sustainment costs. Continuous modernization efforts and potential future platform replacements are essential to mitigate these risks and maintain strategic relevance.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle 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 FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1111 LOCKHEED MARTIN WAY BLDG 157, SUNNYVALE, CA, 94089
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,379,723
Exercised Options: $50,721,780
Current Obligation: $50,451,393
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $707,453
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-10-01
Current End Date: 2017-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2022-05-11
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