DoD Awards $139M Lockheed Martin Contract for HIMARS Launchers and Support
Contract Overview
Contract Amount: $139,228,749 ($139.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-12-23
End Date: 2017-04-30
Contract Duration: 2,320 days
Daily Burn Rate: $60.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HIMARS M142A1 LAUNCHERS, FAILURE REPORTING CORRECTIVE ACTION (FRACAS), SYSTEM INTEGRATOR, NET TRAINING-CONUS, SUPPORT EQUIPMENT: LAGS (18)&SLINGS (4)
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $139.2 million to LOCKHEED MARTIN CORPORATION for work described as: HIMARS M142A1 LAUNCHERS, FAILURE REPORTING CORRECTIVE ACTION (FRACAS), SYSTEM INTEGRATOR, NET TRAINING-CONUS, SUPPORT EQUIPMENT: LAGS (18)&SLINGS (4) Key points: 1. Contract awarded to Lockheed Martin for HIMARS launchers and related support. 2. Focus on failure reporting, corrective action, and training systems. 3. Significant investment in defense systems, potentially impacting readiness. 4. No small business participation noted in this award.
Value Assessment
Rating: good
The contract value of $139.2M for HIMARS launchers and support appears reasonable given the specialized nature of the equipment and the sole-source award. Benchmarking against similar complex defense systems is difficult without more detailed cost breakdowns.
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 potentially leads to higher costs than a competitive process might yield.
Taxpayer Impact: Taxpayer funds are directed to a single contractor without competitive pressure, which could result in a less optimal use of resources compared to a competed contract.
Public Impact
Enhances US Army's long-range precision strike capabilities with HIMARS. Supports critical failure reporting and corrective action for system reliability. Includes essential training and support equipment for operational readiness. Contract duration spans over 2300 days, indicating long-term sustainment needs.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Sole-source award limits competition and price transparency.
- Lack of small business participation.
Positive Signals
- Supports critical defense capabilities (HIMARS).
- Includes comprehensive support and training elements.
- Long contract duration suggests sustained operational need.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense spending. Benchmarks for similar sole-source awards in this niche are scarce, but the value reflects the complexity and strategic importance of the HIMARS system.
Small Business Impact
This contract did not include provisions for small business participation. Given the specialized nature of the work and the sole-source award, opportunities for small businesses were likely limited or not pursued.
Oversight & Accountability
The contract's sole-source nature warrants close oversight to ensure fair pricing and effective delivery. The Department of the Army's contracting activity should monitor performance and costs diligently.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns due to lack of competitive pricing.
- No small business participation.
- Contract duration is lengthy, requiring sustained oversight.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $139.2 million to LOCKHEED MARTIN CORPORATION. HIMARS M142A1 LAUNCHERS, FAILURE REPORTING CORRECTIVE ACTION (FRACAS), SYSTEM INTEGRATOR, NET TRAINING-CONUS, SUPPORT EQUIPMENT: LAGS (18)&SLINGS (4)
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 $139.2 million.
What is the period of performance?
Start: 2010-12-23. End: 2017-04-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense should have conducted a thorough market analysis and price negotiation process to ensure the $139.2M award was fair and reasonable, despite the lack of competition. Documentation of this justification and negotiation is crucial for accountability.
How does the failure reporting and corrective action system (FRACAS) contribute to the overall reliability and cost-effectiveness of the HIMARS system?
An effective FRACAS is vital for identifying and rectifying design flaws, manufacturing defects, or operational issues promptly. By systematically collecting and analyzing failure data, the system allows for targeted improvements, reducing recurring problems and enhancing long-term reliability. This proactive approach can significantly lower lifecycle costs by preventing costly field failures and improving system availability, ultimately contributing to better mission effectiveness.
What is the expected impact of this contract on the operational readiness and strategic capabilities of the US Army?
This contract directly supports the operational readiness of the US Army by ensuring the availability of HIMARS launchers, critical training, and essential support equipment. HIMARS provides a significant long-range precision strike capability, enhancing the Army's ability to engage targets effectively at extended distances. The sustained provision of these systems and their associated support is crucial for maintaining a high level of strategic deterrence and combat effectiveness.
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: W31P4Q10R0080
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $139,228,749
Exercised Options: $139,228,749
Current Obligation: $139,228,749
Subaward Activity
Number of Subawards: 60
Total Subaward Amount: $32,880,921
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-12-23
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 00:00:00
Last Modified: 2025-04-21
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