DoD awards $20.6M to Lockheed Martin for GMLRS rocket components, with no competition
Contract Overview
Contract Amount: $20,583,645 ($20.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-29
End Date: 2028-01-31
Contract Duration: 1,494 days
Daily Burn Rate: $13.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAST TIME BUY (LTB) COMPONENTS FOR GUIDED MUNITIONS LAUNCH ROCKET SYSTEM (GMLRS).
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $20.6 million to LOCKHEED MARTIN CORPORATION for work described as: LAST TIME BUY (LTB) COMPONENTS FOR GUIDED MUNITIONS LAUNCH ROCKET SYSTEM (GMLRS). Key points: 1. Significant award for critical defense components. 2. Sole source award to incumbent prime contractor. 3. Long-term contract duration raises potential cost concerns. 4. Focus on last-time buy suggests obsolescence risk.
Value Assessment
Rating: fair
The award amount is substantial for specialized components. Without competitive bidding, it's difficult to assess if the price reflects market value or if it's inflated due to the sole-source nature and the 'last time buy' urgency.
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 taxpayers as there is no market pressure to reduce prices.
Taxpayer Impact: The lack of competition for essential defense components may result in higher taxpayer expenditure than if multiple vendors were considered.
Public Impact
Ensures continued supply of critical components for GMLRS rockets. Supports ongoing military readiness and operational capabilities. Potential for increased costs due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Long contract duration
- Last-time buy component
Positive Signals
- Ensures critical component availability
- Supports established weapon system
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense manufacturing. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.
Small Business Impact
The data indicates this award went to a large corporation, Lockheed Martin. There is no indication of small business participation in this specific contract, which is common for prime contracts in this specialized defense manufacturing sector.
Oversight & Accountability
As a sole-source award for critical defense components, this contract likely falls under significant oversight from the Department of Defense. However, the lack of competition limits the effectiveness of market-based accountability for pricing.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration may not reflect current market conditions.
- 'Last time buy' status could indicate obsolescence risk.
- 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 $20.6 million to LOCKHEED MARTIN CORPORATION. LAST TIME BUY (LTB) COMPONENTS FOR GUIDED MUNITIONS LAUNCH ROCKET SYSTEM (GMLRS).
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 $20.6 million.
What is the period of performance?
Start: 2023-12-29. End: 2028-01-31.
What is the justification for the sole-source award, and were alternative sourcing strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need to maintain compatibility with existing systems. For a 'last time buy,' it often implies that the component is no longer in regular production or that the original manufacturer is the only viable source for remaining needs. Alternative sourcing strategies might have been explored, but if the component is obsolete or highly specialized, options could be limited.
How does the 'last time buy' status impact the long-term cost and availability of GMLRS rockets?
A 'last time buy' signifies that this is the final opportunity to procure these specific components. This can lead to higher per-unit costs due to reduced economies of scale and the manufacturer potentially incurring additional setup costs for a limited run. It also creates a future risk of obsolescence for the GMLRS system if replacements or upgrades are not planned, potentially requiring costly redesigns or new system procurements.
What measures are in place to ensure the quality and reliability of these components given the long contract duration and sole-source nature?
Despite the sole-source nature, stringent quality assurance and testing protocols are typically mandated by the Department of Defense for all weapon system components. This includes detailed specifications, inspections, and performance verification throughout the manufacturing and delivery process. The long contract duration (2023-2028) necessitates robust quality management systems to ensure consistent performance over the entire period.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: HARDWARE AND ABRASIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $20,583,645
Exercised Options: $20,583,645
Current Obligation: $20,583,645
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $7,988,414
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q23D0003
IDV Type: IDC
Timeline
Start Date: 2023-12-29
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 12:01:00
Last Modified: 2025-12-19
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