DoD's JLTV Program: $65M Spent on Tech Development, Lockheed Martin Selected
Contract Overview
Contract Amount: $64,984,096 ($65.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2008-10-29
End Date: 2011-05-19
Contract Duration: 932 days
Daily Burn Rate: $69.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) TECHNOLOGY DEVELOPMENT PHASE
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $65.0 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) TECHNOLOGY DEVELOPMENT PHASE Key points: 1. Significant investment in advanced military vehicle technology. 2. Lockheed Martin secured the contract, indicating strong capabilities. 3. Potential for high costs given the specialized nature of defense contracts. 4. The sector focuses on advanced armored vehicle manufacturing.
Value Assessment
Rating: questionable
The contract value of $65M for technology development is substantial. Benchmarking against similar defense R&D contracts is difficult due to unique specifications and limited public data. The cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
A full and open competition was conducted, suggesting a robust process for selecting the best offeror. However, the specific pricing mechanisms and negotiation outcomes are not detailed, making it hard to assess price discovery effectiveness.
Taxpayer Impact: Taxpayer funds are allocated to developing next-generation tactical vehicles, aiming for improved performance and survivability, which could offer long-term strategic value.
Public Impact
Enhances military operational capabilities with advanced vehicle technology. Supports innovation in the defense manufacturing sector. Represents a long-term investment in national security infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contracts can inflate final costs.
- Lack of detailed cost breakdown makes value assessment difficult.
- Limited public data on defense R&D benchmarks.
Positive Signals
- Full and open competition ensures a competitive selection process.
- Focus on technology development suggests a forward-looking approach.
Sector Analysis
The defense sector, particularly armored vehicle manufacturing, involves high R&D costs and specialized production. Spending benchmarks are often proprietary, but programs like JLTV represent significant investments in maintaining technological superiority.
Small Business Impact
This contract was awarded to Lockheed Martin, a large prime contractor. There is no indication of small business participation in this specific technology development phase, which is common for major defense programs.
Oversight & Accountability
The Department of the Army managed this contract. Oversight would focus on ensuring technological milestones are met within budget and schedule, with potential for audits on cost-plus elements.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus contract type can lead to cost overruns.
- Limited transparency on specific technological outcomes.
- Difficulty in benchmarking defense R&D costs.
- No explicit mention of small business involvement.
Tags
military-armored-vehicle-tank-and-tank-c, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.0 million to LOCKHEED MARTIN CORPORATION. JOINT LIGHT TACTICAL VEHICLE (JLTV) FAMILY OF VEHICLES (FOV) TECHNOLOGY DEVELOPMENT PHASE
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 $65.0 million.
What is the period of performance?
Start: 2008-10-29. End: 2011-05-19.
What was the final cost of the JLTV program after this technology development phase, and how did it compare to initial projections?
The provided data only covers the technology development phase, totaling $64.98 million. Subsequent phases, including production, would significantly increase the total program cost. Without data on later stages and projections, a comparison of final cost to projections is not possible from this information alone.
What specific technological advancements were achieved during this phase, and how do they mitigate identified risks for soldiers?
The data does not specify the technological advancements made during this phase. However, the Joint Light Tactical Vehicle (JLTV) program aims to provide enhanced protection, mobility, and payload capacity compared to legacy vehicles, addressing risks related to survivability and operational effectiveness in modern combat environments.
How effective was the full and open competition in ensuring the government received the best value for taxpayer dollars in this technology development contract?
While a full and open competition suggests a fair process, the effectiveness in securing best value is hard to gauge without knowing the specific evaluation criteria, the number of bids received, and the final negotiated price relative to independent cost estimates. Cost-plus contracts inherently carry risks of cost escalation.
Industry Classification
NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W56HZV08R0210
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
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: $64,984,096
Exercised Options: $64,984,096
Current Obligation: $64,984,096
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-29
Current End Date: 2011-05-19
Potential End Date: 2011-05-19 12:05:00
Last Modified: 2016-09-13
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