DoD Awards $1.28B to Lockheed Martin for TRIDENT Production and Support Through 2028
Contract Overview
Contract Amount: $1,284,761,157 ($1.3B)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-05
End Date: 2028-09-30
Contract Duration: 1,852 days
Daily Burn Rate: $693.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FY24 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 $1.28 billion to LOCKHEED MARTIN CORPORATION for work described as: FY24 TRIDENT PRODUCTION AND DEPLOYED SYSTEMS SUPPORT Key points: 1. Significant contract value for a critical defense system. 2. Sole-source award to Lockheed Martin, a major defense contractor. 3. Long-term contract duration raises questions about ongoing competition. 4. Focus on missile production and deployed systems support within the Defense sector.
Value Assessment
Rating: questionable
The contract value of $1.28 billion over five years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous contracts 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 limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this large contract could lead to higher taxpayer costs due to the absence of market-driven price reductions.
Public Impact
Ensures continued production and support for the vital TRIDENT missile system. Supports national security by maintaining strategic deterrence capabilities. Long-term commitment to a single contractor may limit innovation and cost-saving opportunities for the government. Potential for cost overruns due to the sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Ensures critical defense capability
- Long-term stability for production
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending in this area is typically high due to the specialized nature and strategic importance of the products.
Small Business Impact
The contract is awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of Defense awarded this contract, with oversight likely provided by the Defense Contract Management Agency. The sole-source nature warrants close monitoring to ensure cost efficiency 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.
- Long contract duration may reduce urgency for cost savings.
- Potential for cost overruns without competitive pressure.
- Lack of transparency regarding specific cost breakdowns.
- Dependency on a single contractor for critical defense 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 $1.28 billion to LOCKHEED MARTIN CORPORATION. FY24 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 $1.28 billion.
What is the period of performance?
Start: 2023-09-05. End: 2028-09-30.
What is the justification for the sole-source award, and have alternative acquisition strategies been considered?
The justification for a sole-source award typically involves unique capabilities, national security imperatives, or a lack of viable alternatives. For a system as critical as TRIDENT, the government may argue that only Lockheed Martin possesses the necessary expertise and infrastructure. However, a thorough review should confirm that no competitive options, even for specific components or support services, were overlooked.
How will the government ensure cost control and value for money given the lack of competition?
Despite the sole-source nature, the government can implement robust cost control measures. This includes detailed cost analysis, performance-based incentives, regular audits, and benchmarking against industry standards where possible. The Fixed Price Incentive (FPI) contract type suggests that both parties share in cost savings or overruns, which can incentivize efficiency.
What are the long-term implications for technological advancement and potential obsolescence of the TRIDENT system under this contract?
A long-term sole-source contract can sometimes stifle innovation if the contractor faces little pressure to develop new technologies. The government must actively engage with Lockheed Martin to ensure modernization efforts are pursued and that the TRIDENT system remains effective against evolving threats. Regular reviews of technological advancements in related fields are crucial to prevent obsolescence.
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: N0003023R0100
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,307,997,912
Exercised Options: $1,302,570,235
Current Obligation: $1,284,761,157
Actual Outlays: $568,034
Subaward Activity
Number of Subawards: 311
Total Subaward Amount: $364,994,151
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-09-05
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-12-11
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