DoD Awards $21.7M for IAMD Battle Command System Launcher Support to Lockheed Martin
Contract Overview
Contract Amount: $21,666,192 ($21.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-03-14
End Date: 2025-09-30
Contract Duration: 931 days
Daily Burn Rate: $23.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AWARD TASK ORDER 05 FOR IAMD BATTLE COMMAND SYSTEM, ENGINEERING, MANUFACTURING, AND DEVELOPMENT LAUNCHER SUPPORT SERVICES
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to LOCKHEED MARTIN CORPORATION for work described as: AWARD TASK ORDER 05 FOR IAMD BATTLE COMMAND SYSTEM, ENGINEERING, MANUFACTURING, AND DEVELOPMENT LAUNCHER SUPPORT SERVICES Key points: 1. Significant award for critical defense system engineering and manufacturing. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long-term contract (931 days) indicates substantial project scope. 4. Focus on Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: fair
The award value of $21.7M for engineering, manufacturing, and development services is substantial. Benchmarking against similar complex defense system contracts is difficult without more detailed scope information, but the 'NOT COMPETED' status suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The lack of competition on this $21.7M award means taxpayers may not be receiving the best possible value, as competitive pressures that drive down costs were absent.
Public Impact
Impacts the development and sustainment of a key missile defense system. Ensures continued support for the IAMD Battle Command System. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost Plus Fixed Fee contract type
Positive Signals
- Critical defense system support
- Long-term contract duration
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of defense contracting. Spending in this sector is often characterized by high R&D costs and limited vendor pools, making sole-source awards more common but also necessitating careful oversight.
Small Business Impact
The awardee, Lockheed Martin Corporation, is a large defense contractor. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors, which is common for large, sole-source defense system contracts.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure the pricing is fair and reasonable and that the contractor is meeting all performance requirements. Robust auditing of costs will be essential.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of competitive bidding.
- Cost Plus Fixed Fee contract can incentivize cost overruns.
- Long contract duration increases exposure to price changes.
- Lack of small business participation.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to LOCKHEED MARTIN CORPORATION. AWARD TASK ORDER 05 FOR IAMD BATTLE COMMAND SYSTEM, ENGINEERING, MANUFACTURING, AND DEVELOPMENT LAUNCHER SUPPORT SERVICES
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 $21.7 million.
What is the period of performance?
Start: 2023-03-14. End: 2025-09-30.
What specific justification was provided for the sole-source award, and what steps were taken to ensure the price was fair and reasonable without competition?
The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For this contract, the Department of the Army would need to document why Lockheed Martin is the only viable option for the IAMD Battle Command System launcher support. Price reasonableness would then be assessed through methods like cost analysis, comparison to historical pricing, or independent government cost estimates, despite the absence of competing bids.
What are the key performance metrics for this contract, and how will they be monitored to ensure effective delivery of launcher support services?
Key performance metrics would likely include on-time delivery of support, quality of engineering and manufacturing services, system availability, and adherence to technical specifications. The Department of the Army's contracting officer and technical representatives will monitor these through regular progress reports, site visits, and performance evaluations. Failure to meet these metrics could result in contract remedies or termination.
Given the long-term nature and sole-source award, what is the government's strategy for potentially introducing competition in future contract actions related to this system?
The government's strategy might involve market research to identify potential alternative providers or developing requirements that could be met by multiple vendors. If the system is proprietary, the government might explore options for acquiring technical data rights or investing in developing alternative solutions. For now, the focus is on ensuring effective execution of the current contract while planning for future needs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING
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: $26,816,393
Exercised Options: $21,666,192
Current Obligation: $21,666,192
Actual Outlays: $2,045
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $678,398
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q19D0016
IDV Type: IDC
Timeline
Start Date: 2023-03-14
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2025-12-04
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