DoD Awards $40M+ for PAC-3 Missile Support, Sole-Sourced to Lockheed Martin
Contract Overview
Contract Amount: $40,036,383 ($40.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-05-01
End Date: 2027-12-31
Contract Duration: 2,435 days
Daily Burn Rate: $16.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS CONTRACT IS FOR PATRIOT ADVANCED CAPABILITY-3 (PAC-3) MISSILE SUPPORT CENTER (P3MSC) FOR THE US AND FOREIGN MILITARY SALES (FMS) CUSTOMERS.
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $40.0 million to LOCKHEED MARTIN CORPORATION for work described as: THIS CONTRACT IS FOR PATRIOT ADVANCED CAPABILITY-3 (PAC-3) MISSILE SUPPORT CENTER (P3MSC) FOR THE US AND FOREIGN MILITARY SALES (FMS) CUSTOMERS. Key points: 1. Significant contract value for critical missile defense system. 2. Sole-source award raises questions about competition and pricing. 3. Long-term support contract (2021-2027) indicates ongoing need. 4. Focus on PAC-3 missile system highlights strategic defense investment.
Value Assessment
Rating: questionable
The contract value of $40M+ for PAC-3 missile support is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential alternatives or previous contracts for similar support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. This limits price discovery and potentially leads to higher costs for the government and FMS customers.
Taxpayer Impact: The lack of competition may result in taxpayers bearing a higher cost for essential missile defense support.
Public Impact
Ensures continued operational readiness of the PAC-3 missile defense system. Supports both U.S. and allied military capabilities through FMS. Potential for increased costs due to sole-source nature. Long-term commitment to a key defense asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Critical defense system support
- Long-term contract duration
- Supports FMS customers
Sector Analysis
This contract falls within the defense sector, specifically focusing on missile systems. Spending benchmarks for specialized defense support services can vary widely, but sole-source awards often deviate from competitive norms.
Small Business Impact
This contract does not appear to involve small business participation, as indicated by the 'sb': false field. The prime contractor is a large corporation, and there's no information on subcontracting to small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and efficient use of funds. Accountability for performance and cost management is crucial given the lack of competitive pressure.
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
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in cost justification
- Long-term reliance on a single vendor
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.0 million to LOCKHEED MARTIN CORPORATION. THIS CONTRACT IS FOR PATRIOT ADVANCED CAPABILITY-3 (PAC-3) MISSILE SUPPORT CENTER (P3MSC) FOR THE US AND FOREIGN MILITARY SALES (FMS) CUSTOMERS.
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 $40.0 million.
What is the period of performance?
Start: 2021-05-01. End: 2027-12-31.
What is the justification for the sole-source award of the PAC-3 missile support contract?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent requirements where only one source can fulfill the need. Without specific documentation, it's presumed that Lockheed Martin is the only entity capable of providing the specialized support required for the PAC-3 system.
How does the lack of competition impact the overall cost-effectiveness of this contract?
A sole-source contract inherently reduces competitive pressure, which can lead to higher prices than if multiple bidders were involved. The government may not achieve the best possible value, and taxpayers could bear increased costs. Robust negotiation and oversight are critical to mitigate this.
What are the risks associated with relying on a single provider for critical missile defense support?
The primary risks include potential price gouging, reduced incentive for innovation, and supply chain vulnerabilities if the sole provider faces operational issues. Dependence on one company can also limit flexibility in adapting to evolving threats or technological advancements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $40,036,383
Exercised Options: $40,036,383
Current Obligation: $40,036,383
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $8,009,611
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q17D0026
IDV Type: IDC
Timeline
Start Date: 2021-05-01
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 12:12:00
Last Modified: 2025-11-19
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