DoD Awards $162M to Lockheed Martin for Guided Multiple Launch Rocket System Extended Range Modification
Contract Overview
Contract Amount: $162,298,312 ($162.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-03-29
End Date: 2027-05-31
Contract Duration: 2,985 days
Daily Burn Rate: $54.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GUIDED MULTIPLE LAUNCH ROCKET SYSTEM EXTENDED RANGE MODIFICATION
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $162.3 million to LOCKHEED MARTIN CORPORATION for work described as: GUIDED MULTIPLE LAUNCH ROCKET SYSTEM EXTENDED RANGE MODIFICATION Key points: 1. Significant investment in advanced missile technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long contract duration (2019-2027) requires ongoing oversight. 4. Focus on guided missile manufacturing aligns with defense sector trends.
Value Assessment
Rating: fair
The contract value of $162M over 8 years suggests a substantial investment. Without comparable contracts or detailed cost breakdowns, assessing the pricing against similar modifications or systems is difficult. The firm-fixed-price structure aims to control costs, but the lack of competition limits price discovery.
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 opportunities for other manufacturers to bid and potentially offer more competitive pricing or innovative solutions. The absence of competition may lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competitive bidding.
Public Impact
Enhances the combat effectiveness of the Army's rocket artillery. Supports the development and production of advanced defense systems. Contributes to the modernization of military equipment. Potential for job creation within the defense manufacturing sector.
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
- Enhances weapon system capability
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industry. Spending in this area is often driven by national security needs and technological advancements, with significant government investment.
Small Business Impact
There is no indication that small businesses are involved in this contract, either as prime contractors or subcontractors. The award to a large corporation like Lockheed Martin suggests a focus on established prime contractors with specialized capabilities.
Oversight & Accountability
The long duration and sole-source nature of this contract necessitate robust oversight from the Department of Defense to ensure cost control, performance, and adherence to contract terms. Regular reviews and performance monitoring are crucial.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration increases risk of cost overruns or scope creep.
- Sole-source awards can stifle innovation from smaller, agile companies.
- Dependence on a single contractor for critical defense capabilities.
- Potential for schedule delays given the extended period.
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 $162.3 million to LOCKHEED MARTIN CORPORATION. GUIDED MULTIPLE LAUNCH ROCKET SYSTEM EXTENDED RANGE MODIFICATION
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 $162.3 million.
What is the period of performance?
Start: 2019-03-29. End: 2027-05-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's unclear if alternative competitive strategies were thoroughly explored or deemed infeasible. Further investigation into the acquisition planning documents would be necessary to understand the rationale.
How does the per-unit cost of this extended-range modification compare to previous versions or similar systems from other nations?
Benchmarking the per-unit cost is challenging without access to detailed cost data and comparable systems. The firm-fixed-price contract aims for cost certainty, but the lack of competition limits external price validation. A comparative analysis with international systems or older variants would require specialized defense cost analysis expertise and access to classified or proprietary information.
What are the specific performance improvements and operational benefits expected from this extended-range modification?
The 'extended range' modification implies a significant enhancement in the missile's operational capabilities, likely allowing for greater standoff distances and improved targeting accuracy. These improvements are expected to enhance the warfighter's effectiveness and survivability by enabling engagement of targets from safer positions and potentially reducing collateral damage through more precise strikes.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle 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: W31P4Q19R0013
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: $169,593,045
Exercised Options: $169,593,045
Current Obligation: $162,298,312
Subaward Activity
Number of Subawards: 414
Total Subaward Amount: $4,952,114,473
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-03-29
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 12:05:00
Last Modified: 2025-09-18
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