DoD Awards $73M for M299 Launcher Parts to Lockheed Martin, Raising Competition Concerns
Contract Overview
Contract Amount: $73,159,259 ($73.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2029-09-30
Contract Duration: 1,462 days
Daily Burn Rate: $50.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DO FOR M299 LAUNCHERS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $73.2 million to LOCKHEED MARTIN CORPORATION for work described as: DO FOR M299 LAUNCHERS Key points: 1. Significant contract value of $73.16 million for critical missile launcher components. 2. Sole-source award to Lockheed Martin suggests limited competition and potential for higher pricing. 3. Risk of inflated costs due to lack of competitive bidding. 4. Spending concentrated in the Defense sector, specifically missile propulsion systems.
Value Assessment
Rating: questionable
The $73.16 million award for M299 launcher parts lacks a competitive benchmark. Without competing offers, it's difficult to assess if this price is reasonable compared to potential market alternatives or previous contracts for similar propulsion units.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was solicited. This significantly limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential missile launcher parts.
Public Impact
Ensures continued operational readiness for critical missile systems. Supports a major defense contractor, potentially impacting jobs and supply chains. Highlights potential inefficiencies in defense procurement processes for specialized components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price gouging
- Limited transparency
Positive Signals
- Ensures supply of critical components
- Supports established defense industrial base
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of propulsion units for guided missiles. Spending in this niche area is often characterized by high technical barriers and limited supplier options, making competitive bidding challenging.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific sole-source award, suggesting minimal direct small business impact.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable. Further investigation into the justification for not competing the requirement is advised.
Related Government Programs
- Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
- No small business participation evident
Tags
guided-missile-and-space-vehicle-propuls, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.2 million to LOCKHEED MARTIN CORPORATION. DO FOR M299 LAUNCHERS
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $73.2 million.
What is the period of performance?
Start: 2025-09-29. End: 2029-09-30.
What is the justification for the sole-source award of this contract?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without further documentation, it's difficult to ascertain the specific rationale, but it necessitates a thorough review to ensure it aligns with federal acquisition regulations and doesn't circumvent competitive processes.
What are the potential risks associated with a sole-source contract for missile propulsion units?
Sole-source contracts carry inherent risks, including the potential for inflated pricing due to the absence of competitive pressure. There's also a risk of reduced innovation and quality if the contractor faces no external motivation to improve. Furthermore, reliance on a single supplier can create vulnerabilities in the supply chain, especially for critical defense components.
How does this contract contribute to the overall effectiveness of the M299 launcher system?
This contract is crucial for maintaining the operational readiness and effectiveness of the M299 launcher system by ensuring a steady supply of necessary propulsion unit parts. The M299 is a key component in deploying certain missile types, so uninterrupted access to these parts is vital for national defense capabilities and mission accomplishment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD, ORLANDO, FL, 32819
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: $73,159,259
Exercised Options: $73,159,259
Current Obligation: $73,159,259
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRRA225D0017
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2029-09-30
Potential End Date: 2029-09-30 12:09:00
Last Modified: 2025-12-16
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)