DoD Awards Lockheed Martin $29.25M for PAC-3 Software Task Year 6
Contract Overview
Contract Amount: $29,250,949 ($29.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-02-13
End Date: 2025-05-31
Contract Duration: 838 days
Daily Burn Rate: $34.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PHASED ARRAY TRACKING RADAR TO INTERCEPT ON TARGET (PATRIOT) ADVANCED CAPABILITY-3 (PAC-3) SOFTWARE TASK YEAR 6 (P3ST).
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $29.3 million to LOCKHEED MARTIN CORPORATION for work described as: PHASED ARRAY TRACKING RADAR TO INTERCEPT ON TARGET (PATRIOT) ADVANCED CAPABILITY-3 (PAC-3) SOFTWARE TASK YEAR 6 (P3ST). Key points: 1. Contract awarded to Lockheed Martin for critical Patriot missile defense software. 2. Focus on advanced capabilities for intercepting targets. 3. Potential for cost overruns due to Cost Plus Incentive Fee contract type. 4. Services fall under 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee type, which can lead to higher costs if performance targets are not met efficiently. Benchmarking is difficult without specific cost breakdowns.
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.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this specialized software development.
Public Impact
Enhances national missile defense capabilities. Supports ongoing modernization of Army air and missile defense systems. Ensures continued operational readiness of the PAC-3 system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Incentive Fee contract type carries cost overrun risk.
Positive Signals
- Supports critical defense capability.
- Long-term contract provides stability for development.
Sector Analysis
This contract falls within the Defense sector, specifically for advanced technology services related to missile defense systems. Spending in this area is typically high due to national security requirements.
Small Business Impact
No indication of small business involvement in this specific contract award. Prime contractor is a large aerospace and defense company.
Oversight & Accountability
The Department of the Army is the contracting activity, with oversight expected to ensure performance and cost control under the incentive fee structure.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Lack of competition may lead to higher prices
- Potential for cost overruns
Tags
all-other-professional-scientific-and-te, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 million to LOCKHEED MARTIN CORPORATION. PHASED ARRAY TRACKING RADAR TO INTERCEPT ON TARGET (PATRIOT) ADVANCED CAPABILITY-3 (PAC-3) SOFTWARE TASK YEAR 6 (P3ST).
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 $29.3 million.
What is the period of performance?
Start: 2023-02-13. End: 2025-05-31.
What specific performance metrics will be used to determine the incentive fee, and how will they be measured?
The incentive fee structure typically ties additional profit to exceeding specific performance targets, such as faster development, higher quality, or reduced system integration time. The Department of the Army will likely have detailed metrics outlined in the contract, focusing on software functionality, reliability, and timely delivery to ensure the PAC-3 system's effectiveness and maintain operational readiness.
What is the historical cost performance of similar PAC-3 software development contracts with Lockheed Martin?
Analyzing historical cost performance for similar PAC-3 software development contracts is crucial for assessing value. If previous contracts experienced significant cost overruns or were consistently above initial estimates, it raises concerns about the current contract's potential for exceeding its $29.25 million award. A review of past performance would inform whether the current pricing is reasonable.
How does this software upgrade contribute to the overall effectiveness and threat response capabilities of the PAC-3 missile defense system?
This software upgrade is critical for enhancing the PAC-3's ability to intercept evolving threats. Advanced capabilities likely include improved target recognition, faster engagement timelines, and better integration with broader air defense networks. The effectiveness of the entire missile defense system hinges on the sophistication and reliability of its software components.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $29,250,949
Exercised Options: $29,250,949
Current Obligation: $29,250,949
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $4,537,573
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W31P4Q22G0003
IDV Type: BOA
Timeline
Start Date: 2023-02-13
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-07-25
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