DoD Awards $794.6M Contract to Lockheed Martin for Guided Missile Launchers
Contract Overview
Contract Amount: $16,155,292 ($16.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-02-02
End Date: 2011-04-06
Contract Duration: 1,889 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200611!001795!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05C0278 !A!N! !N! ! !20060202!20080202!794571448!794571448!834951691!N!LOCKHEED MARTIN CORPORATION !1701 W MARSHALL DRIVE !GRAND PRAIRIE !TX!75051!30464!113!48!GRAND PRAIRIE !DALLAS !TEXAS !+000006734997!N!N!000000000000!1440!LAUNCHERS, GUIDED MISSILE !A2 !MISSILE AND SPACE SYSTEMS !301 !FCS !336992!E! !3! ! ! ! ! !99990909!B! ! !A! !B!N!J!1!001!N!4A!Z!Y!C! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $16.2 million to LOCKHEED MARTIN CORPORATION for work described as: 200611!001795!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05C0278 !A!N! !N! ! !20060202!20080202!794571448!794571448!834951691!N!LOCKHEED MARTIN CORPORATION !1701 W MARSHALL DRIVE !GRAND PRAIRIE !TX!75051!30464!113!48!GRAND PRAIRIE !DALL… Key points: 1. Contract awarded to a single, large defense contractor, Lockheed Martin. 2. Significant contract value of $794.6 million over 5 years. 3. No competition reported, raising potential concerns about price discovery. 4. Sector is Defense, specifically missile and space systems. 5. Contract type is Firm Fixed Price, which shifts risk to the contractor.
Value Assessment
Rating: questionable
The contract value is $794.6 million. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this price is competitive. The lack of competition is a primary driver for this assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or sole-source procurement. This limits the government's ability to leverage market competition to achieve the best possible price.
Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying a premium for these guided missile launchers.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. This contract supports critical defense capabilities for the U.S. Army. The long-term nature of the contract suggests ongoing reliance on these systems. The award to a major defense contractor highlights industry concentration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Firm Fixed Price contract shifts risk to contractor
- Supports critical defense systems
Sector Analysis
This contract falls within the Defense sector, specifically for missile and space systems. Spending in this area is often characterized by high R&D costs, specialized manufacturing, and significant government oversight due to national security implications.
Small Business Impact
This contract was 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 contract is managed by the Department of the Army. Given the value and nature of the procurement, robust oversight mechanisms are expected to be in place to monitor performance and costs, though specific details are not provided.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns if not managed tightly
- Long contract duration may indicate evolving requirements
- Reliance on a single large contractor
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.2 million to LOCKHEED MARTIN CORPORATION. 200611!001795!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05C0278 !A!N! !N! ! !20060202!20080202!794571448!794571448!834951691!N!LOCKHEED MARTIN CORPORATION !1701 W MARSHALL DRIVE !GRAND PRAIRIE !TX!75051!30464!113!48!GRAND PRAIRIE !DALLAS !TEXAS !+000006734997!N!N!000000000000!1440!LAUNCHERS, GUIDED MISSILE !A2 !MISSILE AND SPACE SYSTEMS !301 !FCS !336992!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $16.2 million.
What is the period of performance?
Start: 2006-02-02. End: 2011-04-06.
What is the cost per unit for these guided missile launchers, and how does it compare to industry benchmarks?
The provided data does not include a specific per-unit cost. The total contract value is $794.6 million over 1889 days. To determine a per-unit cost, the number of units procured would be needed. Without this, a direct comparison to industry benchmarks is not possible, hindering a precise value assessment.
What are the specific reasons for the limited competition on this contract?
The data states the contract was 'NOT AVAILABLE FOR COMPETITION.' This typically implies a sole-source justification, such as a unique capability, proprietary technology, or urgent need where only one contractor can fulfill the requirement. Further investigation into the contract's justification documentation would be needed to understand the precise reasons.
How effectively has Lockheed Martin performed on previous contracts for similar missile systems?
The provided data does not include historical performance metrics for Lockheed Martin on similar contracts. Assessing past performance would require access to contract performance reports, past performance questionnaires, or other government quality assurance records. This information is crucial for evaluating the effectiveness and reliability of the contractor.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1701 W MARSHALL DRIVE, GRAND PRAIRIE, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-02-02
Current End Date: 2011-04-06
Potential End Date: 2011-04-06 00:00:00
Last Modified: 2010-04-06
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