DoD Awards $23.8M for PATRIOT PAC-3 CISD Development, Sole-Source Contract to Lockheed Martin
Contract Overview
Contract Amount: $23,769,862 ($23.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-08-28
End Date: 2027-03-26
Contract Duration: 1,306 days
Daily Burn Rate: $18.2K/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), NORTHROP GRUMMAN (NG) COMMON IGNITION SAFETY DEVISE (CISD) DEVELOPMENT
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $23.8 million to LOCKHEED MARTIN CORPORATION for work described as: PHASED ARRAY TRACKING RADAR TO INTERCEPT ON TARGET (PATRIOT) ADVANCED CAPABILITY-3 (PAC-3), NORTHROP GRUMMAN (NG) COMMON IGNITION SAFETY DEVISE (CISD) DEVELOPMENT Key points: 1. Contract awarded for critical missile defense system component. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Spending falls within 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure can incentivize cost overruns if not carefully managed. Benchmarking against similar complex defense system development contracts is difficult without more detailed 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 compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are being used for a sole-source development contract, which may not represent the best value due to the lack of competition.
Public Impact
Enhances national missile defense capabilities. Supports advanced military technology development. Contract awarded to a single, established defense contractor. Funding allocated for a critical component of the PATRIOT system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- CPIF contract type can lead to cost overruns.
- Lack of detailed cost transparency.
Positive Signals
- Supports critical defense technology.
- Awarded to a prime contractor with proven expertise.
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Defense spending in this sector often involves complex R&D and specialized technical services, with benchmarks varying widely based on project scope and criticality.
Small Business Impact
The contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight will be crucial to manage the CPIF structure effectively and ensure the development meets technical requirements within projected costs.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Incentive Fee contract type carries inherent risk of cost overruns.
- Lack of transparency regarding specific technical advancements justifying sole-source.
- Potential for schedule delays impacting missile defense readiness.
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 $23.8 million to LOCKHEED MARTIN CORPORATION. PHASED ARRAY TRACKING RADAR TO INTERCEPT ON TARGET (PATRIOT) ADVANCED CAPABILITY-3 (PAC-3), NORTHROP GRUMMAN (NG) COMMON IGNITION SAFETY DEVISE (CISD) DEVELOPMENT
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 $23.8 million.
What is the period of performance?
Start: 2023-08-28. End: 2027-03-26.
What is the specific technical innovation or upgrade being developed for the PAC-3 CISD, and how does it justify a sole-source award?
The specific technical innovation is the development of the Common Ignition Safety Device (CISD) for the Advanced Capability-3 (PAC-3) missile. A sole-source award might be justified if Lockheed Martin possesses unique intellectual property, specialized manufacturing capabilities, or if the development is a direct follow-on to existing proprietary technology where competition is technically infeasible or would significantly delay critical upgrades to the missile defense system.
How will the Department of Defense ensure cost control and value for money with a Cost Plus Incentive Fee contract for this sole-source award?
Cost control with a CPIF contract relies heavily on robust government oversight, clearly defined performance metrics, and realistic target costs. The Department of Defense must establish achievable incentive targets tied to cost, schedule, and performance. Regular audits, detailed cost reporting, and proactive negotiation with the contractor are essential to mitigate the risk of cost overruns and ensure the government receives fair value for its investment.
What are the long-term implications for the PAC-3 missile defense system's effectiveness and cost if this CISD development faces significant delays or cost overruns?
Significant delays or cost overruns in the CISD development could impact the overall readiness and effectiveness of the PAC-3 missile defense system, potentially leaving critical defense gaps. Increased costs would directly translate to higher taxpayer burden and could necessitate budget reallocations, potentially affecting other defense programs. This could also lead to a reduced operational capability or a need for more expensive interim solutions.
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: $23,769,862
Exercised Options: $23,769,862
Current Obligation: $23,769,862
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $13,181,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W31P4Q22G0003
IDV Type: BOA
Timeline
Start Date: 2023-08-28
Current End Date: 2027-03-26
Potential End Date: 2027-03-26 12:03:00
Last Modified: 2025-12-19
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