DoD Awards $264M to Lockheed Martin for M270 MLRS Recapitalization and Upgrade
Contract Overview
Contract Amount: $264,364,523 ($264.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-05-23
End Date: 2030-12-30
Contract Duration: 2,047 days
Daily Burn Rate: $129.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RECAPITALIZATION AND UPGRADE OF THE M270 MULTIPLE LAUNCH ROCKET SYSTEM (MLRS).
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $264.4 million to LOCKHEED MARTIN CORPORATION for work described as: RECAPITALIZATION AND UPGRADE OF THE M270 MULTIPLE LAUNCH ROCKET SYSTEM (MLRS). Key points: 1. Significant investment in modernizing a key Army weapon system. 2. Sole-source award to Lockheed Martin, raising questions about competition. 3. Long-term contract (2030) suggests a substantial upgrade program. 4. Focus on guided missile and space vehicle manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $264.36 million for the M270 MLRS recapitalization is substantial. Benchmarking against similar complex weapon system upgrades is difficult without more detailed cost breakdowns, but the lack of competition raises concerns about potential overpricing.
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 increases costs for taxpayers, as there was no opportunity for other manufacturers to bid.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Enhances the combat readiness and effectiveness of the U.S. Army's artillery capabilities. Supports critical defense industrial base manufacturing and jobs. Ensures the M270 MLRS remains a relevant and potent weapon system against evolving threats.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Long contract duration
Positive Signals
- Modernization of critical defense asset
- Sustains key manufacturing capabilities
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is often characterized by high R&D costs and long production cycles, with significant government investment.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, which is common for major defense system upgrades.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will be crucial to ensure the program stays on schedule and within budget, especially given the sole-source nature and long duration.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Long contract duration increases risk of cost escalation.
- Limited transparency on specific upgrade details.
- Potential for schedule delays in complex modernization.
- Dependence on a single contractor for critical capability.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $264.4 million to LOCKHEED MARTIN CORPORATION. RECAPITALIZATION AND UPGRADE OF THE M270 MULTIPLE LAUNCH ROCKET SYSTEM (MLRS).
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 $264.4 million.
What is the period of performance?
Start: 2025-05-23. End: 2030-12-30.
What specific technological upgrades are included in this M270 MLRS recapitalization, and how do they enhance warfighting capabilities?
The specific technological upgrades are not detailed in the provided data. However, recapitalization typically involves modernizing avionics, fire control systems, and potentially integrating new munitions or communication systems. These enhancements aim to improve accuracy, range, survivability, and network-centric warfare capabilities for the M270 platform, ensuring its effectiveness against future threats.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to mitigate potential cost increases?
The justification for a sole-source award is not provided. Typically, this occurs when only one source possesses the necessary capabilities or proprietary knowledge. To mitigate cost increases, the Army should implement rigorous oversight, performance metrics, and potentially phased funding tied to milestones. Independent cost estimates and value engineering reviews are also essential.
How will the effectiveness of the upgraded M270 MLRS be measured, and what are the key performance indicators for this contract?
Effectiveness will likely be measured through a combination of technical performance tests, operational assessments, and user feedback. Key performance indicators could include reliability rates, accuracy improvements (e.g., reduced circular error probable), increased system availability, successful integration with new munitions, and enhanced survivability in contested environments. Formal testing and evaluation by the DoD will validate these metrics.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $547,737,935
Exercised Options: $264,364,523
Current Obligation: $264,364,523
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-05-23
Current End Date: 2030-12-30
Potential End Date: 2030-12-30 00:00:00
Last Modified: 2026-01-13
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