DoD Awards $675M for Javelin Missiles to Meet Urgent Replenishment Needs
Contract Overview
Contract Amount: $675,433,329 ($675.4M)
Contractor: Raytheon/Lockheed Martin Javelin JV
Awarding Agency: Department of Defense
Start Date: 2025-08-27
End Date: 2031-02-28
Sector: Defense
Official Description: THIS ACTION IS TO SATISFY AN URGENT NEED FOR REPLENISHMENT OF THE JAVELIN WEAPONS SYSTEM. THIS T.O. WILL EXECUTE A UCA FOR DO 003 (FY25 BUY) FOR JPO FOR ALL UP ROUND MISSILES, BATTERY COOL UNIT, AND TOOLING WITH A NTE OF $900,526,210.44.
Plain-Language Summary
Department of Defense obligated $675.4 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV for work described as: THIS ACTION IS TO SATISFY AN URGENT NEED FOR REPLENISHMENT OF THE JAVELIN WEAPONS SYSTEM. THIS T.O. WILL EXECUTE A UCA FOR DO 003 (FY25 BUY) FOR JPO FOR ALL UP ROUND MISSILES, BATTERY COOL UNIT, AND TOOLING WITH A NTE OF $900,526,210.44. Key points: 1. Urgent need drives significant contract value for Javelin weapon system. 2. Sole source likely due to specialized nature of Javelin JV. 3. Risk of cost overruns due to urgent, sole-source procurement. 4. Defense sector spending on critical weapon systems remains high.
Value Assessment
Rating: questionable
The contract value of $675.4 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar advanced missile systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award to the Raytheon/Lockheed Martin Javelin JV, likely due to the specialized and proprietary nature of the Javelin system. This limits price discovery and competition.
Taxpayer Impact: Taxpayer funds are committed to a high-value, non-competitive contract to address an urgent defense need.
Public Impact
Ensures continued availability of a critical anti-tank weapon system for national defense. Supports the readiness of military personnel with essential combat equipment. Potential for higher costs due to lack of competitive bidding. Impacts defense budget allocation for other potential programs.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Sole-source procurement
- Urgent need justification
- High contract value
Positive Signals
- Addresses critical defense requirement
- Ensures weapon system availability
Sector Analysis
This contract falls within the Defense sector, specifically for advanced weaponry. Spending on such systems is benchmarked against overall defense budgets and the strategic importance of the equipment.
Small Business Impact
No information is provided regarding small business participation in this contract. Sole-source awards often have limited opportunities for subcontracting to small businesses.
Oversight & Accountability
The justification for an urgent need and sole-source award will require thorough oversight to ensure the necessity and fair pricing, despite the lack of competition.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpricing due to sole-source nature.
- Urgency may limit thorough review and negotiation.
- Lack of competitive bidding reduces transparency.
- High value increases financial risk if costs are not optimized.
Tags
department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $675.4 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV. THIS ACTION IS TO SATISFY AN URGENT NEED FOR REPLENISHMENT OF THE JAVELIN WEAPONS SYSTEM. THIS T.O. WILL EXECUTE A UCA FOR DO 003 (FY25 BUY) FOR JPO FOR ALL UP ROUND MISSILES, BATTERY COOL UNIT, AND TOOLING WITH A NTE OF $900,526,210.44.
Who is the contractor on this award?
The obligated recipient is RAYTHEON/LOCKHEED MARTIN JAVELIN JV.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $675.4 million.
What is the period of performance?
Start: 2025-08-27. End: 2031-02-28.
What is the historical cost trend for Javelin missiles and components under previous contracts?
Analyzing historical cost data for Javelin missiles, batteries, and cooling units is crucial. Without this context, it's challenging to determine if the current NTE of $900.5 million and the awarded value of $675.4 million represent a fair price. Past performance and cost trends can highlight potential escalations or efficiencies.
What are the specific risks associated with the 'urgent need' justification for this sole-source award?
The 'urgent need' justification, while valid for defense readiness, carries risks. It can be used to bypass competitive processes, potentially leading to inflated prices and reduced scrutiny. Ensuring the urgency is genuine and documented is key to mitigating risks of overpayment and ensuring efficient use of taxpayer funds.
How does the long-term sustainment and upgrade plan for the Javelin system factor into this contract's overall effectiveness?
This contract focuses on replenishment, but the long-term effectiveness of the Javelin system depends on sustainment and future upgrades. Understanding the lifecycle costs, including maintenance, training, and modernization, is vital. This replenishment order should align with a broader strategy to ensure the system remains relevant and cost-effective over its operational life.
More Contracts from Raytheon/Lockheed Martin Javelin JV
- Javelin Production Contract Award to Include the ALL UP Rounds (AUR), Battery Coolant Units (BCU), and Javelin Vehicle Launcher Electronics (jvl-E) — $1.7B (Department of Defense)
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- UCA Award FY13 Block 1 Tactical Rounds: US Army and Usmc — $1.4B (Department of Defense)
- Javelin Weapons System Production Idiq Delivery Order: 6300 Missiles & Production Ramp UP — $1.3B (Department of Defense)
- Ukraine Javelin Production System Production Idiq Delivery Order: 6,432 Missiles and Production Ramp UP — $1.0B (Department of Defense)
View all Raytheon/Lockheed Martin Javelin JV federal contracts →
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