DoD's $48M Missile Trainer Contract Awarded to Lockheed Martin Amidst Limited Competition
Contract Overview
Contract Amount: $48,212,446 ($48.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-12-03
End Date: 2017-02-28
Contract Duration: 818 days
Daily Burn Rate: $58.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: MISSILE ROUND TRAINERS, EMPTY ROUND TRAINERS
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $48.2 million to LOCKHEED MARTIN CORPORATION for work described as: MISSILE ROUND TRAINERS, EMPTY ROUND TRAINERS Key points: 1. Significant contract value of $48.2 million for missile trainers. 2. Sole-source award to Lockheed Martin Corporation raises questions about competition. 3. Contract duration of 818 days suggests a substantial project timeline. 4. The sector is Guided Missile and Space Vehicle Manufacturing, a critical defense area.
Value Assessment
Rating: fair
The contract's fixed-price incentive structure aims to control costs, but without competitive bidding, it's difficult to assess if the $48.2 million represents a fair market price. Benchmarking against similar trainer systems would be necessary for a definitive valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these missile trainers.
Public Impact
Ensures readiness for missile systems by providing essential training equipment. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. Highlights the reliance on specific manufacturers for specialized defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns without competitive pressure
Positive Signals
- Provides critical training equipment for missile systems
- Supports national defense objectives
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized and critical area of defense spending. Benchmarks for similar trainer systems are often difficult to obtain due to the proprietary nature of defense technology and limited competition.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no direct indication of small business participation in this specific award, suggesting potential exclusion or limited subcontracting opportunities for SMBs.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is reasonable and that future procurements explore competitive options where feasible.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of competitive bidding.
- Lack of transparency in cost justification.
- Limited opportunity for innovation and efficiency improvements.
- No clear indication of small business participation.
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 $48.2 million to LOCKHEED MARTIN CORPORATION. MISSILE ROUND TRAINERS, EMPTY ROUND TRAINERS
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 $48.2 million.
What is the period of performance?
Start: 2014-12-03. End: 2017-02-28.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed the Department of the Army determined Lockheed Martin was the only viable option, potentially due to specialized design or existing system integration.
What are the potential risks associated with a sole-source contract for specialized defense equipment like missile trainers?
The primary risks include inflated pricing due to the absence of competitive pressure, reduced innovation as the contractor faces no market incentive to improve efficiency or technology, and a potential lack of transparency in cost justification. This can lead to suboptimal value for taxpayer dollars and a missed opportunity to foster broader industry capabilities.
How does this contract contribute to the overall effectiveness of missile system training and readiness?
This contract directly contributes to the effectiveness of missile system training by providing the necessary trainer equipment. Ensuring that soldiers have access to realistic and functional training tools is crucial for maintaining operational readiness and proficiency with complex missile systems, ultimately enhancing the military's overall capability.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $48,212,446
Exercised Options: $48,212,446
Current Obligation: $48,212,446
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,385,599
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-12-03
Current End Date: 2017-02-28
Potential End Date: 2017-02-28 12:02:00
Last Modified: 2019-03-14
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