Army Awards $43.8M for Finland M270 Upgrades to Lockheed Martin
Contract Overview
Contract Amount: $43,779,367 ($43.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-02-18
End Date: 2017-04-30
Contract Duration: 2,263 days
Daily Burn Rate: $19.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FINLAND M270 UPGRADES
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $43.8 million to LOCKHEED MARTIN CORPORATION for work described as: FINLAND M270 UPGRADES Key points: 1. Significant contract value for specialized defense equipment. 2. Sole-source award to Lockheed Martin indicates limited competition. 3. Potential risk associated with single-vendor reliance. 4. Spending falls within the Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $43.8M for M270 upgrades is substantial. Without specific benchmark data for this niche upgrade, a direct pricing assessment is difficult, but the firm fixed-price nature suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: Taxpayer funds are directed to a single contractor, potentially at a premium due to the lack of competition for these specialized M270 upgrades.
Public Impact
Enhances military readiness and strategic capabilities for Finland. Supports the defense industrial base and high-tech manufacturing jobs. Represents a significant investment in advanced missile systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration (2263 days) may obscure current market value.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Firm fixed-price contract helps control costs.
- Award to a known prime contractor for specialized systems.
- Supports allied defense capabilities.
Sector Analysis
This contract falls under the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of defense spending. Benchmarks are difficult to establish due to the unique nature of M270 upgrades.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, suggesting a focus on specialized capabilities held by the prime.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program management offices ensuring delivery and adherence to contract terms, though specific oversight details are not provided.
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.
- Lack of transparency in pricing due to single bidder.
- Potential for cost overruns without competitive pressure.
- Long contract duration may not reflect current market value.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.8 million to LOCKHEED MARTIN CORPORATION. FINLAND M270 UPGRADES
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 $43.8 million.
What is the period of performance?
Start: 2011-02-18. End: 2017-04-30.
What is the specific technical scope of the M270 upgrades and how does it justify a sole-source award?
The M270 upgrades likely involve enhancements to the Multiple Launch Rocket System (MLRS) platform, potentially including improved fire control systems, new munitions compatibility, or enhanced survivability features. A sole-source award might be justified if Lockheed Martin holds unique intellectual property, proprietary technology, or if the upgrades are part of an existing, integrated system where only they possess the necessary expertise and components to maintain interoperability and avoid significant re-engineering costs.
How does the $43.8M cost compare to similar defense system upgrade contracts, considering the sole-source nature?
Direct comparison is challenging due to the specialized nature of M270 upgrades and the sole-source award. Typically, sole-source contracts tend to be higher than competitively bid ones. Without access to classified pricing data or similar upgrade contracts for comparable systems (like HIMARS or other MLRS variants), it's difficult to definitively state if $43.8M is excessive. However, the lack of competition inherently raises concerns about potential overpricing.
What is the long-term strategic value and effectiveness of these M270 upgrades for Finland's defense posture?
These upgrades are crucial for maintaining and enhancing Finland's long-range precision strike capabilities, a key component of its defense strategy. Modernized M270s improve accuracy, range, and the ability to employ advanced munitions, thereby increasing deterrence and battlefield effectiveness. This investment ensures Finland's forces remain equipped with relevant and potent systems capable of addressing evolving security threats in its region.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q10R0239
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, 75051
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: $87,548,962
Exercised Options: $43,779,367
Current Obligation: $43,779,367
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $17,970,754
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-02-18
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 00:00:00
Last Modified: 2020-05-28
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