DoD Awards $404M for Guided Multiple Launch Rocket Systems Full Rate Production XI to Lockheed Martin
Contract Overview
Contract Amount: $403,896,947 ($403.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-05-19
End Date: 2023-01-31
Contract Duration: 2,448 days
Daily Burn Rate: $165.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GUIDED MULTIPLE LAUNCH ROCKET SYSTEMS FULL RATE PRODUCTION XI
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $403.9 million to LOCKHEED MARTIN CORPORATION for work described as: GUIDED MULTIPLE LAUNCH ROCKET SYSTEMS FULL RATE PRODUCTION XI Key points: 1. Significant investment in critical defense hardware. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long contract duration (2016-2023) may impact price competitiveness. 4. Focus on production efficiency and delivery for the Army.
Value Assessment
Rating: fair
The contract value of $403.9 million over approximately 2448 days suggests a substantial, long-term commitment. Without specific per-unit cost data or benchmarks for similar GMLRS production runs, a precise value assessment is difficult. However, the firm fixed-price nature aims to control costs.
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 approach limits price discovery and potentially reduces competitive pressure, which could lead to higher costs for taxpayers compared to a competed procurement.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these critical rocket systems.
Public Impact
Ensures continued supply of essential munitions for the U.S. Army. Supports advanced rocket system technology and manufacturing capabilities. Potential for export to allied nations, bolstering international security partnerships.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Firm fixed price contract
- Critical defense system
- Long-term production
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 driven by national security needs and technological advancements, with significant government investment.
Small Business Impact
The data indicates this is a large prime contract awarded to Lockheed Martin Corporation. There is no information provided regarding subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
As a sole-source award for a critical defense system, this contract warrants close oversight to ensure fair pricing and efficient execution. The Department of the Army is responsible for monitoring performance and adherence to contract terms.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Lack of transparency on per-unit cost benchmarks.
- Long contract duration may obscure cost efficiencies.
- Potential for cost overruns without competitive pressure.
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 $403.9 million to LOCKHEED MARTIN CORPORATION. GUIDED MULTIPLE LAUNCH ROCKET SYSTEMS FULL RATE PRODUCTION XI
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 $403.9 million.
What is the period of performance?
Start: 2016-05-19. End: 2023-01-31.
What is the historical cost trend for GMLRS production under previous full-rate production contracts with Lockheed Martin?
Analyzing historical cost trends for GMLRS production is crucial for assessing value. Without access to prior contract data, it's difficult to determine if the current $403.9 million award represents an increase, decrease, or stable cost per unit. This information would help identify potential efficiencies or cost escalations over time.
What are the specific performance metrics and delivery schedules outlined in this contract, and how are they being monitored?
Understanding the specific performance metrics and delivery schedules is key to evaluating effectiveness. The contract's duration of 2448 days suggests a phased approach. Robust monitoring by the Department of the Army is essential to ensure timely delivery of high-quality GMLRS and to hold Lockheed Martin accountable for meeting all contractual obligations.
Are there any alternative suppliers or technologies that could be considered for future GMLRS procurements to foster competition?
Exploring alternative suppliers or technologies for future GMLRS procurements is vital for long-term cost savings and innovation. Given this is a sole-source award, the Department of Defense should actively research the market for potential competitors or next-generation systems. This proactive approach could lead to more competitive bidding in subsequent contract actions.
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: W31P4Q16R0021
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $526,469,114
Exercised Options: $526,469,114
Current Obligation: $403,896,947
Actual Outlays: $2,761
Subaward Activity
Number of Subawards: 300
Total Subaward Amount: $748,073,233
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-05-19
Current End Date: 2023-01-31
Potential End Date: 2023-01-31 00:00:00
Last Modified: 2025-07-17
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