DoD Awards $18M for PAC-3 Missile Support to Lockheed Martin, No Competition
Contract Overview
Contract Amount: $18,088,176 ($18.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-14
End Date: 2027-09-16
Contract Duration: 1,828 days
Daily Burn Rate: $9.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS CONTRACT IS FOR PATRIOT ADVANCED CAPABILITIES-3 (PAC-3) MISSILE SUPPORT CENTER (P3MSC) FOR THE UNITED STATES 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 $18.1 million to LOCKHEED MARTIN CORPORATION for work described as: THIS CONTRACT IS FOR PATRIOT ADVANCED CAPABILITIES-3 (PAC-3) MISSILE SUPPORT CENTER (P3MSC) FOR THE UNITED STATES AND FOREIGN MILITARY SALES (FMS) CUSTOMERS. Key points: 1. High value contract for critical missile support. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Supports both US and FMS customers, indicating global reliance.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a sole-source award, makes it difficult to assess value without competitive benchmarks. The awarded amount is significant, but the pricing mechanism warrants scrutiny.
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 for the government and FMS customers.
Taxpayer Impact: Taxpayer funds are committed without competitive pressure, potentially increasing the overall cost of missile support.
Public Impact
Ensures continued operational readiness for the PAC-3 missile system. Supports critical defense capabilities for the U.S. and allied nations. Potential impact on defense budget allocation due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Critical defense system support
- Long-term contract duration
Sector Analysis
This contract falls under the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often dominated by a few key contractors due to specialized requirements and high barriers to entry.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award suggests a need for robust oversight to ensure fair pricing and effective performance. Transparency in cost reporting will be crucial.
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
- Lack of competition may lead to inflated costs.
- Contract type (CPFF) can incentivize spending.
- Reliance on a single contractor for critical support.
- Potential for scope creep without strict oversight.
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 $18.1 million to LOCKHEED MARTIN CORPORATION. THIS CONTRACT IS FOR PATRIOT ADVANCED CAPABILITIES-3 (PAC-3) MISSILE SUPPORT CENTER (P3MSC) FOR THE UNITED STATES 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 $18.1 million.
What is the period of performance?
Start: 2022-09-14. End: 2027-09-16.
What is the justification for the sole-source award, and have alternatives been explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Exploring alternatives, even if ultimately unsuccessful, is a standard part of procurement processes to ensure best value. Without specific documentation, it's difficult to ascertain the precise rationale.
How does the fixed fee component in this Cost Plus Fixed Fee contract compare to industry standards for similar support services?
Assessing the fixed fee requires benchmarking against similar sole-source contracts for complex defense systems. Factors like contract duration, scope of work, and the contractor's historical performance influence the fee. A higher-than-average fee could indicate less competitive pressure or higher perceived risk.
What mechanisms are in place to ensure cost control and prevent overruns given the Cost Plus Fixed Fee structure and sole-source award?
Cost control in CPFF contracts relies heavily on detailed cost monitoring, audits, and negotiation of the fixed fee. For sole-source awards, the government must be particularly diligent in scrutinizing costs, validating expenditures, and ensuring the contractor meets performance metrics to justify the fee and overall expenditure.
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: $18,088,176
Exercised Options: $18,088,176
Current Obligation: $18,088,176
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: 2022-09-14
Current End Date: 2027-09-16
Potential End Date: 2027-09-16 12:09:00
Last Modified: 2025-05-07
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