DoD awards $29M Raytheon/Lockheed Martin JV contract for Javelin missile seeker prototypes

Contract Overview

Contract Amount: $29,095,545 ($29.1M)

Contractor: Raytheon/Lockheed Martin Javelin JV

Awarding Agency: Department of Defense

Start Date: 2025-09-24

End Date: 2027-09-30

Contract Duration: 736 days

Daily Burn Rate: $39.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TASK ORDER TO AWARD ENGINEERING SERVICE MEMORANDUM 26.04.01 "SPIRAL 3 ALTERNATE SEEKER PROTOTYPE EFFORT" UNDER THE JAVELIN ENGINEERING SERVICE CONTRACT.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV for work described as: TASK ORDER TO AWARD ENGINEERING SERVICE MEMORANDUM 26.04.01 "SPIRAL 3 ALTERNATE SEEKER PROTOTYPE EFFORT" UNDER THE JAVELIN ENGINEERING SERVICE CONTRACT. Key points: 1. Contract awarded to a joint venture with established expertise in missile systems. 2. Focus on prototype development suggests investment in future defense capabilities. 3. Cost-plus fixed-fee structure may incentivize contractor efficiency. 4. Long performance period indicates a complex, multi-phase development effort. 5. Sole-source award raises questions about potential cost efficiencies from competition. 6. Geographic concentration in Arizona for performance.

Value Assessment

Rating: fair

The contract's value of $29.1 million for engineering services is substantial. Benchmarking this against similar prototype development contracts for advanced missile systems is challenging due to the specialized nature of the Javelin program. The cost-plus fixed-fee (CPFF) pricing structure means the government pays the contractor's costs plus a fixed fee, which can lead to cost overruns if not carefully managed. Without detailed cost breakdowns or comparisons to industry standards for similar R&D efforts, assessing the value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential contractors. The justification for a sole-source award typically involves unique capabilities or a lack of viable alternatives. In this case, the award to the Raytheon/Lockheed Martin Javelin JV suggests that this specific entity possesses the necessary expertise and intellectual property related to the Javelin system, making competition impractical or detrimental to program continuity.

Taxpayer Impact: Sole-source awards limit the potential for competitive bidding, which can drive down prices. Taxpayers may not benefit from the cost savings that could arise from a more open competition.

Public Impact

The U.S. Army benefits from the development of advanced missile seeker prototypes. This contract supports the modernization and enhancement of the Javelin anti-tank missile system. The primary geographic impact is in Arizona, where the contractor will perform the work. The contract will likely involve specialized engineering and technical personnel, potentially impacting the defense industry workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Cost-plus fixed-fee contracts can carry a risk of cost overruns if not managed diligently.
The specialized nature of the Javelin system may create barriers to entry for potential competitors in future procurements.

Positive Signals

Award to an experienced joint venture with a proven track record on the Javelin program.
Focus on prototype development indicates investment in critical future defense capabilities.
The long performance period suggests a structured approach to complex engineering challenges.

Sector Analysis

This contract falls within the Defense Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for advanced missile systems is highly specialized, dominated by a few large prime contractors and their joint ventures. Spending in this area is driven by national security priorities and the need for technological superiority. Comparable spending benchmarks are difficult to establish due to the unique nature of weapon system development, but significant R&D investments are typical for next-generation military hardware.

Small Business Impact

This contract does not appear to include specific small business set-asides, nor is the primary awardee a small business. The nature of advanced defense systems development often involves large, complex contracts that may not be easily divisible for small business participation. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely indirect, depending on the extent to which the prime contractor utilizes small business suppliers.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures will be tied to the delivery of prototypes and adherence to the fixed fee. Transparency may be limited due to the sole-source nature and the classified aspects often associated with defense technology development. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Javelin Missile System
Advanced Missile Technology Development
Defense Engineering Services Contracts
Department of the Army Research and Development

Risk Flags

Sole-source award
Cost-plus fixed-fee contract type
Prototype development for critical defense system

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to RAYTHEON/LOCKHEED MARTIN JAVELIN JV. TASK ORDER TO AWARD ENGINEERING SERVICE MEMORANDUM 26.04.01 "SPIRAL 3 ALTERNATE SEEKER PROTOTYPE EFFORT" UNDER THE JAVELIN ENGINEERING SERVICE CONTRACT.

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 $29.1 million.

What is the period of performance?

Start: 2025-09-24. End: 2027-09-30.

What is the track record of the Raytheon/Lockheed Martin Javelin JV in delivering similar engineering services for advanced weapon systems?

The Raytheon/Lockheed Martin Javelin JV is the established prime contractor for the Javelin Weapon System, a highly successful anti-tank missile. Their track record in delivering and supporting this system is extensive, encompassing production, upgrades, and sustainment. This specific task order leverages their deep institutional knowledge and existing infrastructure related to the Javelin program. Their experience includes managing complex engineering challenges, integrating new technologies, and meeting stringent military requirements, making them uniquely qualified for this prototype development effort. Past performance on the Javelin program indicates a strong capability to execute complex engineering tasks within the defense sector.

How does the $29.1 million value compare to other engineering service contracts for missile prototype development?

Directly comparing the $29.1 million value of this specific task order to other missile prototype development contracts is challenging without access to proprietary cost data and specific program details. However, for advanced, next-generation weapon systems like the Javelin, significant investment in research and development is standard. Prototype development often involves substantial costs for design, simulation, materials, testing, and specialized engineering talent. Given the complexity and critical nature of seeker technology for guided missiles, this funding level appears consistent with the high-risk, high-reward nature of such R&D efforts within the defense industry. It reflects the specialized expertise and long development cycles required.

What are the primary risks associated with this sole-source, cost-plus fixed-fee contract?

The primary risks associated with this sole-source, cost-plus fixed-fee (CPFF) contract are twofold. Firstly, the sole-source nature means there was no competitive bidding process, potentially leading to a higher price than might be achieved through competition. This limits price discovery and the government's leverage in negotiations. Secondly, the CPFF structure, while providing flexibility for evolving R&D requirements, carries the inherent risk of cost overruns. If the contractor's actual costs exceed initial estimates, the government is obligated to cover these costs, plus the agreed-upon fixed fee. Effective oversight and robust cost tracking are crucial to mitigate this risk and ensure the government receives good value.

How effective is the Javelin system, and how will this contract contribute to its future effectiveness?

The Javelin system is widely regarded as a highly effective, man-portable anti-tank weapon system, known for its "fire-and-forget" capability and top-attack trajectory. This contract, focused on developing alternate seeker prototypes, aims to enhance the system's future effectiveness. Improved seeker technology could lead to greater target acquisition capabilities, better performance in adverse weather conditions, increased resistance to countermeasures, and potentially reduced collateral damage. By investing in the next generation of seeker technology, the Department of the Army seeks to maintain the Javelin's battlefield relevance and lethality against evolving threats.

What are the historical spending patterns for the Javelin program and related engineering services?

Historical spending on the Javelin program has been substantial over its lifecycle, reflecting its status as a key component of U.S. and allied ground forces. Funding has historically supported procurement, upgrades, training, and sustainment. Engineering services, particularly for research, development, and modernization efforts like this prototype task order, represent a significant portion of the program's overall investment. While specific figures for past engineering service contracts are not provided here, the consistent modernization efforts and ongoing threat evolution suggest a sustained pattern of investment in R&D and engineering support for the Javelin system.

What are the implications of performing this work in Arizona for the defense industrial base?

Performing this work in Arizona has several implications for the defense industrial base. Arizona has a significant presence in the aerospace and defense sector, with established infrastructure, a skilled workforce, and supportive state policies. Awarding this contract to a facility in Arizona leverages these existing regional capabilities. It potentially supports local jobs and economic activity within the state's defense ecosystem. Furthermore, it aligns with the geographic distribution of defense manufacturing and R&D, potentially benefiting from established supply chains and logistical networks within the region.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1151 E HERMANS RD BLDG 805 M\\S C6, TUCSON, AZ, 85756

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,095,545

Exercised Options: $29,095,545

Current Obligation: $29,095,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q24D0001

IDV Type: IDC

Timeline