DoD Awards $8M for PATRIOT Component Software Build System Testing to Lockheed Martin
Contract Overview
Contract Amount: $8,000,000 ($8.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-02-28
End Date: 2026-08-31
Contract Duration: 549 days
Daily Burn Rate: $14.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PATRIOT COMPONENT SOFTWARE BUILD (PCSB) SYSTEM GROUND AND FLIGHT TEST
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $8.0 million to LOCKHEED MARTIN CORPORATION for work described as: PATRIOT COMPONENT SOFTWARE BUILD (PCSB) SYSTEM GROUND AND FLIGHT TEST Key points: 1. Significant contract awarded to a major defense contractor. 2. Focus on testing and development for a critical defense system. 3. Potential for cost overruns given the Cost Plus Incentive Fee structure. 4. Limited competition raises questions about price discovery.
Value Assessment
Rating: questionable
The Cost Plus Incentive Fee (CPIF) contract type can lead to costs exceeding initial estimates if performance targets are not met efficiently. The benchmark for similar software development and testing contracts is difficult to ascertain without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits the government's ability to secure the best possible price and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this $8 million contract means taxpayers may not be receiving the most cost-effective solution available.
Public Impact
Ensures continued development and testing of the PATRIOT missile system's software. Supports advanced military capabilities for the Department of Defense. Potential impact on future defense spending based on testing outcomes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee contract type
- Potential for scope creep
Positive Signals
- Supports critical defense system
- Long-term contract duration
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically related to defense systems. Spending in this area is often driven by national security needs and technological advancements, with benchmarks varying widely based on system complexity.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in the provided data.
Oversight & Accountability
Oversight will be crucial to manage the CPIF contract effectively, ensuring performance targets are met and costs are controlled. The Department of the Army's contracting office is responsible for this award.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- CPIF contract type carries inherent cost overrun risk.
- Lack of transparency on specific testing objectives.
- Potential for extended contract duration beyond initial estimates.
Tags
all-other-professional-scientific-and-te, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.0 million to LOCKHEED MARTIN CORPORATION. PATRIOT COMPONENT SOFTWARE BUILD (PCSB) SYSTEM GROUND AND FLIGHT TEST
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 $8.0 million.
What is the period of performance?
Start: 2025-02-28. End: 2026-08-31.
What specific software components are being tested, and how does this testing directly contribute to the overall effectiveness of the PATRIOT system?
The specific software components being tested are integral to the PATRIOT Component Software Build (PCSB) System. This testing is crucial for ensuring the system's operational readiness, accuracy, and ability to counter evolving threats. Successful testing validates software updates and new functionalities, directly impacting the system's reliability and performance in real-world combat scenarios.
Given the sole-source nature and CPIF contract type, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?
While the contract is sole-source, the CPIF structure includes incentive targets tied to performance. The government will likely employ rigorous Earned Value Management (EVM) and detailed cost reviews to monitor expenditures against milestones. Regular audits and negotiations on incentive fees will be critical to ensure the contractor is motivated to control costs while achieving performance objectives.
How will the outcomes of this testing phase influence future procurement decisions or system upgrades for the PATRIOT missile defense system?
The results of the PCSB system ground and flight tests will directly inform future development and procurement strategies. Positive outcomes may validate current designs and lead to incremental upgrades, while identified issues could necessitate significant redesigns or the exploration of alternative technologies. This data is vital for long-term strategic planning and budget allocation for the PATRIOT program.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $19,999,800
Exercised Options: $9,265,845
Current Obligation: $8,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: W31P4Q22G0003
IDV Type: BOA
Timeline
Start Date: 2025-02-28
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 12:08:00
Last Modified: 2025-12-10
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)