DoD's JLTV EMD Phase Contract Awarded to Lockheed Martin for $65.5M
Contract Overview
Contract Amount: $65,497,274 ($65.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-08-22
End Date: 2014-11-21
Contract Duration: 821 days
Daily Burn Rate: $79.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75265
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $65.5 million to LOCKHEED MARTIN CORPORATION for work described as: JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) PHASE Key points: 1. The contract for the Joint Light Tactical Vehicle (JLTV) Engineering Manufacturing and Development (EMD) phase was awarded to Lockheed Martin Corporation. 2. This was a full and open competition, indicating a competitive bidding process for the development phase. 3. The contract value for this EMD phase was approximately $65.5 million. 4. The award was made by the Department of the Army, a component of the Department of Defense.
Value Assessment
Rating: good
The $65.5 million EMD phase contract appears reasonable given the scope of developing a new military vehicle. Benchmarking against similar complex defense system development contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The competitive nature of the award for this development phase is intended to ensure taxpayer funds are used efficiently for the initial stages of the JLTV program.
Public Impact
The JLTV program aims to replace the aging Humvee fleet, impacting future military operational capabilities. This EMD phase is critical for testing and validating the design before full-scale production. Successful development could lead to significant follow-on production contracts, representing substantial future spending. The program's success is vital for soldier survivability and mission effectiveness in various combat environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation noted.
- Contract duration for EMD phase seems long relative to value.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type can control costs.
- Awarded by a major defense agency.
Sector Analysis
The defense sector, particularly vehicle manufacturing, involves high R&D costs and long development cycles. Spending benchmarks for similar EMD phases can vary widely based on technological complexity and program scope.
Small Business Impact
The data indicates no specific set-aside for small businesses in this EMD phase contract. Future production phases may offer more opportunities for small business involvement, but this initial phase appears to be dominated by larger prime contractors.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, is responsible for overseeing this contract. Robust oversight is crucial during the EMD phase to ensure technical milestones are met and costs remain controlled before proceeding to production.
Related Government Programs
- Military Armored Vehicle, Tank, and Tank Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns in subsequent production phases.
- Dependence on a single prime contractor for critical development.
- Long-term sustainment costs are not detailed in this award.
- Limited visibility into specific small business subcontracting plans.
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 $65.5 million to LOCKHEED MARTIN CORPORATION. JOINT LIGHT TACTICAL VEHICLE (JLTV) - ENGINEERING MANUFACTURING AND DEVELOPMENT (EMD) 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 $65.5 million.
What is the period of performance?
Start: 2012-08-22. End: 2014-11-21.
What is the projected total lifecycle cost of the JLTV program, and how does the EMD phase cost compare to initial estimates?
The total lifecycle cost for the JLTV program is projected to be significantly higher than the EMD phase, encompassing full-scale production, sustainment, and upgrades over decades. The EMD phase cost of $65.5 million represents the initial investment in design, prototyping, and testing. Comparing this to initial estimates requires access to the program's baseline cost projections, which are often classified or subject to change based on development outcomes.
What are the key performance metrics and technical risks associated with the JLTV EMD phase, and how are they being mitigated?
Key performance metrics for the JLTV EMD phase likely include survivability, mobility, transportability, and reliability under various combat conditions. Technical risks could involve integrating new armor technologies, ensuring adequate power for advanced electronics, and achieving desired fuel efficiency. Mitigation strategies typically involve rigorous testing, phased development, independent reviews, and contingency planning for potential design challenges or component failures.
How will the JLTV's performance and capabilities, developed in this EMD phase, enhance overall military effectiveness compared to the vehicles it replaces?
The JLTV is designed to offer significantly improved protection against modern threats, enhanced off-road mobility, and greater payload capacity compared to the aging Humvee. This improved survivability and operational flexibility are expected to enhance military effectiveness by allowing units to operate more safely and efficiently in complex battlefield environments, supporting a wider range of missions and equipment.
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
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
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: $72,408,175
Exercised Options: $71,088,619
Current Obligation: $65,497,274
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $310,730
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-22
Current End Date: 2014-11-21
Potential End Date: 2014-11-21 12:11:00
Last Modified: 2018-09-18
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