DoD Awards $61.8M to Lockheed Martin for RIG-360 EMD Development, Not Competed
Contract Overview
Contract Amount: $61,836,509 ($61.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-05-09
End Date: 2026-09-30
Contract Duration: 509 days
Daily Burn Rate: $121.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: THIS AWARD DEFINITIZES UCA FOR REMOTE INTERCEPTOR GUIDANCE (RIG-360) ENGINEERING, MANUFACTURING, AND DESIGN (EMD) DEVELOPMENT PROGRAM.
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $61.8 million to LOCKHEED MARTIN CORPORATION for work described as: THIS AWARD DEFINITIZES UCA FOR REMOTE INTERCEPTOR GUIDANCE (RIG-360) ENGINEERING, MANUFACTURING, AND DESIGN (EMD) DEVELOPMENT PROGRAM. Key points: 1. Significant investment in advanced missile guidance technology. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Potential for cost overruns given the Cost Plus Incentive Fee structure. 4. Focus on Engineering, Manufacturing, and Design (EMD) phase.
Value Assessment
Rating: questionable
The award amount of $61.8M for a 509-day EMD phase is substantial. Without competitive benchmarks, it's difficult to assess pricing efficiency. The Cost Plus Incentive Fee (CPIF) contract type suggests potential for cost growth if targets are not met.
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. The rationale for sole-sourcing is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this critical defense system.
Public Impact
Advancement of U.S. missile defense capabilities. Potential impact on geopolitical stability and deterrence. Job creation and economic activity within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- CPIF contract type can lead to cost overruns.
- Lack of detailed justification for sole-sourcing.
Positive Signals
- Critical technology development for national security.
- Experienced contractor (Lockheed Martin) likely to deliver.
- Clear end date for the EMD phase.
Sector Analysis
This award falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-tech and often specialized area of defense spending. Benchmarks for EMD phases of similar complexity are typically high due to R&D intensity.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award notice, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight will be crucial to manage the CPIF structure effectively and ensure the EMD phase stays within projected costs and timelines.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award.
- Cost Plus Incentive Fee contract type.
- Potential for cost overruns.
- Lack of competition may lead to higher prices.
- No small business participation indicated.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.8 million to LOCKHEED MARTIN CORPORATION. THIS AWARD DEFINITIZES UCA FOR REMOTE INTERCEPTOR GUIDANCE (RIG-360) ENGINEERING, MANUFACTURING, AND DESIGN (EMD) DEVELOPMENT PROGRAM.
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 $61.8 million.
What is the period of performance?
Start: 2025-05-09. End: 2026-09-30.
What is the specific justification for awarding this contract sole-source to Lockheed Martin, and were alternative solutions or contractors considered?
The provided data does not include the justification for the sole-source award. Typically, sole-sourcing is employed when only one responsible source can provide the required supplies or services. A thorough review would examine if this is due to unique capabilities, intellectual property, or other factors, and whether a competitive process was genuinely infeasible.
How will the Cost Plus Incentive Fee (CPIF) structure be managed to ensure cost control and incentivize Lockheed Martin to meet performance targets efficiently?
Effective management of the CPIF contract requires clearly defined performance targets, cost ceilings, and incentive fee structures. The government must establish robust monitoring and reporting mechanisms to track costs and progress. Regular reviews and communication with Lockheed Martin will be essential to ensure alignment and address any deviations promptly.
What are the key performance metrics and milestones for the RIG-360 EMD development program, and how will their achievement be measured to validate the contract's effectiveness?
Key performance metrics and milestones for the RIG-360 EMD program would likely include technical performance specifications, prototype development completion, successful testing phases, and adherence to design requirements. Effectiveness will be measured by the successful completion of these milestones within the defined schedule and budget, ultimately leading to a viable design for production.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
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: $121,444,752
Exercised Options: $61,836,509
Current Obligation: $61,836,509
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-09
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-03-16
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