DoD Awards $60M for Joint Air to Ground Missile Tech Development to Lockheed Martin
Contract Overview
Contract Amount: $60,000,000 ($60.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-08-15
End Date: 2015-05-31
Contract Duration: 1,019 days
Daily Burn Rate: $58.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT AIR TO GROUND MISSILE (JAGM), CONTINUED TECHNOLOGY DEVELOPMENT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $60.0 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT AIR TO GROUND MISSILE (JAGM), CONTINUED TECHNOLOGY DEVELOPMENT Key points: 1. Significant investment in advanced missile technology development. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Potential for cost overruns or schedule delays in long-term development. 4. Focus on defense sector, specifically guided missile manufacturing.
Value Assessment
Rating: fair
The contract value of $60 million for continued technology development is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value against similar R&D efforts is difficult. The firm fixed-price structure aims to control costs, but the 'continued technology development' nature implies evolving requirements.
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 if multiple vendors had competed. The justification for sole-source is not provided, which is a concern for ensuring fair pricing.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for the technology development.
Public Impact
Enhances U.S. military's close air support capabilities. Supports advanced weapon system development, potentially impacting future defense budgets. Contributes to the defense industrial base and high-tech manufacturing jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long duration (1019 days) for technology development increases risk of scope creep.
- Lack of clear justification for sole-source award.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Award supports critical defense technology development.
Sector Analysis
This contract falls within the defense sector, specifically the manufacturing of guided missiles and related equipment. Spending in this area is driven by national security needs and technological advancements in warfare. Benchmarks for technology development contracts can vary widely based on complexity and maturity.
Small Business Impact
This award does not appear to directly benefit small businesses, as it is a sole-source contract awarded to a large corporation, Lockheed Martin. Subcontracting opportunities for small businesses are not specified in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to understand the justification for not competing the contract and to ensure that the development process is efficient and cost-effective.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns in long-term R&D.
- Lack of transparency regarding justification for sole-source.
- Technology development is inherently risky and may not yield desired results.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.0 million to LOCKHEED MARTIN CORPORATION. JOINT AIR TO GROUND MISSILE (JAGM), CONTINUED TECHNOLOGY DEVELOPMENT
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 $60.0 million.
What is the period of performance?
Start: 2012-08-15. End: 2015-05-31.
What is the specific technological advancement being pursued with this $60 million investment, and how does it align with current and future military requirements?
The specific technological advancement pertains to the continued development of the Joint Air to Ground Missile (JAGM). This missile is designed to provide enhanced precision strike capabilities against a wide range of targets, including moving and stationary threats, from various aerial platforms. Its development aligns with the military's need for multi-role, all-weather precision munitions to maintain battlefield superiority and reduce collateral damage.
Given the sole-source nature of the award, what measures are in place to ensure that Lockheed Martin is delivering the technology development at a fair and reasonable price?
While the contract is firm fixed-price, which inherently aims for cost certainty, the sole-source aspect necessitates robust government oversight. This typically involves detailed technical reviews, progress monitoring, and potentially audits of cost data if deemed necessary by the contracting officer. The Department of Defense would need to ensure that the negotiated price reflects a fair return for the work performed, even without competitive pressure.
What is the projected impact of this continued technology development on the overall effectiveness and operational readiness of U.S. air-to-ground strike capabilities?
The continued development of the JAGM is expected to significantly enhance the effectiveness and operational readiness of U.S. air-to-ground strike capabilities. By improving targeting precision, expanding the range of targets that can be engaged, and potentially offering multi-platform compatibility, the JAGM aims to provide warfighters with a more versatile and lethal weapon system, thereby increasing overall combat effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q11R0035
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 W SAND LAKE RD # MP-265, 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: $60,000,000
Exercised Options: $60,000,000
Current Obligation: $60,000,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-08-15
Current End Date: 2015-05-31
Potential End Date: 2015-05-31 12:05:00
Last Modified: 2019-05-28
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