Army Awards $29.7M for GMLRS Rocket Motor Nozzle Closures to Lockheed Martin
Contract Overview
Contract Amount: $29,698,982 ($29.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-30
End Date: 2026-06-30
Contract Duration: 761 days
Daily Burn Rate: $39.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GUIDED MULTIPLE LAUNCH ROCKET SYSTEM (GMLRS) ROCKET MOTOR NOZZLE CLOSURE ASSEMBLY REFRESH EFFORT
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $29.7 million to LOCKHEED MARTIN CORPORATION for work described as: GUIDED MULTIPLE LAUNCH ROCKET SYSTEM (GMLRS) ROCKET MOTOR NOZZLE CLOSURE ASSEMBLY REFRESH EFFORT Key points: 1. Significant contract for critical missile components. 2. Sole source award to incumbent prime contractor. 3. Long-term contract duration raises questions about competition. 4. Focus on sustainment and readiness for Army aviation.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar missile component contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the GMLRS system and the prime contractor's existing role. The lack of competition limits price discovery and potentially increases costs.
Taxpayer Impact: Taxpayer funds are being used for a sole-source award, which may not represent the best value without competitive pressure.
Public Impact
Ensures continued availability of critical missile components for Army operations. Supports the sustainment of the GMLRS platform, a key weapon system. Potential for increased costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense capability
- Award to incumbent prime contractor
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector. Spending in this sector is driven by national defense priorities and technological advancements in weaponry.
Small Business Impact
There is no indication that small businesses are involved in this specific contract, as it is a sole-source award to a large prime contractor.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers on time and within the established parameters, despite the lack of competition.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Long contract duration
- Reliance on sole-source provider
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 $29.7 million to LOCKHEED MARTIN CORPORATION. GUIDED MULTIPLE LAUNCH ROCKET SYSTEM (GMLRS) ROCKET MOTOR NOZZLE CLOSURE ASSEMBLY REFRESH EFFORT
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 $29.7 million.
What is the period of performance?
Start: 2024-05-30. End: 2026-06-30.
What is the rationale for the sole-source award, and were any market research efforts conducted to explore competitive options?
The rationale for a sole-source award typically stems from the unique capabilities or proprietary nature of the product or service, or the incumbent's established role in a complex system like the GMLRS. Agencies are generally required to conduct market research to justify sole-source procurements, exploring if other capable sources exist or if competition could be fostered through contract structuring.
How will the agency ensure cost control and prevent potential overruns with a Cost Plus Fixed Fee contract for this long-duration effort?
Cost control in a Cost Plus Fixed Fee (CPFF) contract relies heavily on robust government oversight, detailed cost monitoring, and clear performance metrics. The agency must actively track incurred costs, ensure they align with the fixed fee objectives, and enforce contract terms to prevent scope creep or inefficiencies. Regular audits and performance reviews are essential.
What is the long-term strategy for ensuring competitive pricing for GMLRS components beyond this contract?
The long-term strategy might involve breaking down the system into more modular components that could be competitively sourced, encouraging new entrants into the market through technology transfer or licensing, or developing alternative systems. The agency could also plan for future full and open competition by clearly defining requirements and fostering a broader industrial base.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle 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: $29,698,982
Exercised Options: $29,698,982
Current Obligation: $29,698,982
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $25,935,137
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: 2024-05-30
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-19
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