DOD Awards $98M Contract for UK DREADNOUGHT Class Missile System Support to Lockheed Martin
Contract Overview
Contract Amount: $98,339,324 ($98.3M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2017-04-28
End Date: 2022-02-28
Contract Duration: 1,767 days
Daily Burn Rate: $55.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF UK DREADNOUGHT CLASS MISSILE SYSTEM SUPPORT
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94089
Plain-Language Summary
Department of Defense obligated $98.3 million to LOCKHEED MARTIN CORP for work described as: IGF::OT::IGF UK DREADNOUGHT CLASS MISSILE SYSTEM SUPPORT Key points: 1. Significant investment in a critical defense platform. 2. Sole-source award to Lockheed Martin, raising competition concerns. 3. Long-term contract duration suggests ongoing support needs. 4. High value contract warrants close scrutiny of cost-effectiveness.
Value Assessment
Rating: questionable
The contract value of $98.3M over nearly 5 years is substantial. Without competitive bidding, it's difficult to benchmark against similar support contracts for complex defense systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in inflated prices, impacting the efficient use of taxpayer funds for essential defense capabilities.
Public Impact
Ensures continued operational readiness of the UK's strategic deterrent. Supports advanced engineering and technical services for a complex weapons system. Potential for job creation within Lockheed Martin and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Critical national security support
- Experienced contractor
Sector Analysis
This contract falls under Engineering Services, specifically supporting a major defense platform. Spending in this category is often high due to the complexity and specialized nature of defense systems.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract.
Oversight & Accountability
Oversight is crucial given the sole-source nature and cost-plus contract type. The Department of Defense and potentially the UK Ministry of Defence should ensure rigorous monitoring of costs and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type may lead to cost overruns.
- Long contract duration increases exposure to price changes.
- Lack of transparency on performance metrics.
- Potential for contractor lock-in.
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.3 million to LOCKHEED MARTIN CORP. IGF::OT::IGF UK DREADNOUGHT CLASS MISSILE SYSTEM SUPPORT
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 $98.3 million.
What is the period of performance?
Start: 2017-04-28. End: 2022-02-28.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further details, it's unclear if alternatives were explored or if this is a continuation of existing support where competition was deemed impractical or too costly to initiate.
How does the cost-plus fixed fee structure impact overall cost control for this missile system support?
Cost-plus fixed fee (CPFF) contracts allow the contractor to recover allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can vary significantly based on actual costs incurred. This structure can incentivize cost overruns if not tightly managed, making robust oversight essential to control the final price.
What are the long-term implications for sustainment costs and technological relevance of the DREADNOUGHT class missile system?
This contract's duration and scope suggest a long-term commitment to supporting the DREADNOUGHT class. The effectiveness of this support will influence the system's operational readiness and lifespan. Continuous evaluation is needed to ensure costs remain reasonable and that the support keeps pace with evolving technological requirements and threats.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003017Q0017
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1111 LOCKHEED MARTIN WAY, 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: $99,167,559
Exercised Options: $98,339,324
Current Obligation: $98,339,324
Actual Outlays: $2,758,108
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $37,583,502
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-04-28
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2025-09-04
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