DoD awards $144.3M to Lockheed Martin for M270 launcher upgrades for Bahrain, including training and manuals
Contract Overview
Contract Amount: $14,430,000 ($14.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-02-27
End Date: 2011-12-31
Contract Duration: 1,037 days
Daily Burn Rate: $13.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UPGRADE OF SIX (6) EACH M270 LAUNCHERS TO M270C1 CONFIGURATION FOR THE KINGDOM OF BAHRAIN; ADDITIONAL REQUIREMENTS INCLUDE SPARE PARTS PACKAGE, NEW EQUIPMENT TRAINING, AND INTERACTIVE ELECTRONIC TECHNICAL MANUALS.
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $14.4 million to LOCKHEED MARTIN CORPORATION for work described as: UPGRADE OF SIX (6) EACH M270 LAUNCHERS TO M270C1 CONFIGURATION FOR THE KINGDOM OF BAHRAIN; ADDITIONAL REQUIREMENTS INCLUDE SPARE PARTS PACKAGE, NEW EQUIPMENT TRAINING, AND INTERACTIVE ELECTRONIC TECHNICAL MANUALS. Key points: 1. This contract focuses on upgrading existing M270 launchers to the M270C1 configuration. 2. The primary contractor is Lockheed Martin Corporation, a major defense manufacturer. 3. The contract includes significant additional requirements beyond the hardware, such as training and technical documentation. 4. The sector is dominated by large, established defense contractors.
Value Assessment
Rating: fair
The contract value of $144.3 million for six launcher upgrades, spare parts, training, and manuals appears high. Without specific per-unit cost data for the upgrade itself, it's difficult to benchmark against similar, smaller-scale upgrades or individual component costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source procurement. This limits price discovery and potentially leads to higher costs for the government and the end-user.
Taxpayer Impact: Taxpayer funds are being used for foreign military sales, with limited transparency on cost-effectiveness due to the lack of competition.
Public Impact
Enhances military capabilities for an allied nation, contributing to regional security. Supports the defense industrial base through a significant contract award. Includes provisions for training and technical manuals, ensuring operational readiness and maintainability. The upgrade addresses specific missile launcher technology, indicating a focus on advanced weaponry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may inflate costs.
- Foreign military sale, direct taxpayer impact unclear.
- High value contract for specialized defense equipment.
Positive Signals
- Upgrades critical defense assets.
- Includes comprehensive training and support.
- Supports a key defense contractor.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense manufacturing. Spending in this sector is typically high-value and driven by government procurement for national defense and allied support.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were significantly involved in this specific award, either as subcontractors or direct awardees.
Oversight & Accountability
The Department of the Army, under the Department of Defense, awarded this contract. Oversight would typically involve contract management and performance monitoring to ensure delivery and quality standards are met, especially given the foreign military sale aspect.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- High contract value.
- Foreign military sale.
- Lack of detailed cost breakdown.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.4 million to LOCKHEED MARTIN CORPORATION. UPGRADE OF SIX (6) EACH M270 LAUNCHERS TO M270C1 CONFIGURATION FOR THE KINGDOM OF BAHRAIN; ADDITIONAL REQUIREMENTS INCLUDE SPARE PARTS PACKAGE, NEW EQUIPMENT TRAINING, AND INTERACTIVE ELECTRONIC TECHNICAL MANUALS.
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 $14.4 million.
What is the period of performance?
Start: 2009-02-27. End: 2011-12-31.
What is the cost breakdown for the M270C1 upgrade versus the associated training and technical manuals?
The provided data does not offer a detailed cost breakdown between the hardware upgrade, spare parts, new equipment training, and interactive electronic technical manuals. Understanding this allocation would provide better insight into the value proposition of each component of the contract and identify potential areas for cost savings in future procurements.
What are the specific risks associated with a limited competition award for military hardware upgrades?
Limited competition awards for military hardware increase the risk of inflated pricing due to the absence of market pressure. It also raises concerns about whether the best available technology or most cost-effective solution was secured. Furthermore, it can limit opportunities for innovation from a broader range of suppliers and potentially create vendor lock-in.
How does the M270C1 upgrade enhance the operational effectiveness of the Kingdom of Bahrain's military assets?
The M270C1 configuration represents an upgrade to the M270 Multiple Launch Rocket System, likely incorporating improved targeting, longer range, enhanced survivability, or compatibility with newer munitions. These enhancements would significantly boost the Kingdom of Bahrain's precision strike capabilities and overall battlefield effectiveness, particularly in complex operational environments.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
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 DR, GRAND PRAIRIE, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,430,000
Exercised Options: $14,430,000
Current Obligation: $14,430,000
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-02-27
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2011-10-26
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