DoD awards $1.22B to Lockheed Martin for TRIDENT production and support, with no competition
Contract Overview
Contract Amount: $1,223,741,781 ($1.2B)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-08-07
End Date: 2026-09-30
Contract Duration: 2,245 days
Daily Burn Rate: $545.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FY21 TRIDENT PRODUCTION AND DEPLOYED SYSTEMS SUPPORT
Place of Performance
Location: TITUSVILLE, BREVARD County, FLORIDA, 32780
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $1.22 billion to LOCKHEED MARTIN CORPORATION for work described as: FY21 TRIDENT PRODUCTION AND DEPLOYED SYSTEMS SUPPORT Key points: 1. Significant investment in strategic missile systems. 2. Sole-source award to incumbent contractor raises cost concerns. 3. Long-term contract duration suggests ongoing program needs. 4. High value contract warrants close scrutiny of pricing and performance.
Value Assessment
Rating: questionable
The contract value of $1.22 billion is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or historical pricing for similar 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 lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Ensures continued readiness of strategic nuclear deterrent. Supports high-tech manufacturing jobs within the defense sector. Potential for cost overruns due to sole-source nature. Impacts national security posture through reliable system support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Critical national security program
- Incumbent contractor expertise
- Fixed Price Incentive contract type can incentivize cost control
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of national defense. Spending in this area is typically high and often involves specialized, high-cost components.
Small Business Impact
The data indicates this is a large prime contract awarded to Lockheed Martin Corporation. There is no information provided regarding subcontracting opportunities for small businesses on this specific contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature necessitates robust oversight to ensure fair pricing and performance.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High contract value increases financial risk.
- Long contract duration may obscure initial cost reasonableness.
- Potential for cost overruns without competitive pressure.
- Reliance on a single contractor for critical systems.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.22 billion to LOCKHEED MARTIN CORPORATION. FY21 TRIDENT PRODUCTION AND DEPLOYED SYSTEMS SUPPORT
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 $1.22 billion.
What is the period of performance?
Start: 2020-08-07. End: 2026-09-30.
What is the basis for the sole-source justification, and what steps are being taken to ensure cost reasonableness?
The justification for a sole-source award typically involves factors like unique capabilities, essential system integration, or lack of viable alternatives. Robust oversight by the contracting agency is crucial to scrutinize cost proposals, negotiate favorable terms, and monitor performance to mitigate risks associated with non-competitive awards and ensure taxpayer funds are used efficiently.
How does the performance history of Lockheed Martin on similar TRIDENT contracts inform the risk assessment for this award?
Assessing Lockheed Martin's past performance on TRIDENT programs is vital. A history of meeting cost, schedule, and quality targets suggests lower risk. Conversely, past issues with cost overruns, delays, or performance deficiencies would elevate concerns and necessitate stricter oversight and potentially more stringent incentive clauses within the contract.
What are the key performance indicators (KPIs) and incentives within this Fixed Price Incentive contract to ensure program effectiveness and cost control?
A Fixed Price Incentive (FPI) contract aims to share cost savings or overruns between the government and contractor. Key KPIs would likely focus on production milestones, system reliability, and delivery schedules. Incentives would be structured to reward the contractor for achieving targets below the ceiling price and potentially penalize them for exceeding it, driving efficiency.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003020Q0100
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1102 JOHN GLENN BLVD, TITUSVILLE, FL, 32780
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,393,694,695
Exercised Options: $1,360,852,048
Current Obligation: $1,223,741,781
Actual Outlays: $45,989
Subaward Activity
Number of Subawards: 751
Total Subaward Amount: $1,267,645,514
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-08-07
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-07-18
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