DoD Awards $92.3M for ICBM Fuze Integration and Support to Lockheed Martin
Contract Overview
Contract Amount: $92,307,974 ($92.3M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2015-01-29
End Date: 2020-01-28
Contract Duration: 1,825 days
Daily Burn Rate: $50.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CT::IGF THE ICBM FUZE WSIC EFFORT WILL PROVIDE SUPPORT TO THE ICBM FUZE PROGRAM OFFICE IN ITS EFFORTS TO INTEGRATE, QUALIFY AND CERTIFY THE NEW SANDIA NATIONAL LAB MK21/W87 REPLACEMENT FUZE INTO THE MMIII WEAPON SYSTEM BY PROVIDING WEAPON SYSTEM INTEGRATION, SUSTAINING ENGINEERING, MODIFICATION OF SYSTEMS AND EQUIPMENT, SOFTWARE MAINTENANCE, DEVELOPMENTAL ENGINEERING, PRODUCTION ENGINEERING AND PROCUREMENT SERVICES.
Place of Performance
Location: KING OF PRUSSIA, MONTGOMERY County, PENNSYLVANIA, 19406
Plain-Language Summary
Department of Defense obligated $92.3 million to LOCKHEED MARTIN CORP for work described as: IGF::CT::IGF THE ICBM FUZE WSIC EFFORT WILL PROVIDE SUPPORT TO THE ICBM FUZE PROGRAM OFFICE IN ITS EFFORTS TO INTEGRATE, QUALIFY AND CERTIFY THE NEW SANDIA NATIONAL LAB MK21/W87 REPLACEMENT FUZE INTO THE MMIII WEAPON SYSTEM BY PROVIDING WEAPON SYSTEM INTEGRATION, SUSTAINING ENGIN… Key points: 1. Significant contract for critical missile system component integration. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Focus on engineering, sustainment, and procurement services. 4. Long-term effort spanning five years.
Value Assessment
Rating: fair
The $92.3 million contract value appears substantial for integration and sustainment services. Benchmarking against similar complex weapon system integration contracts is difficult without more detailed scope information, but the duration suggests a significant effort.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, limiting price discovery and competition. The justification for sole-source procurement needs to be thoroughly reviewed to ensure it was appropriate and that the government received fair value.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Ensures the continued operational readiness of the ICBM weapon system. Supports advanced engineering and sustainment for a critical national defense asset. Potential for job creation within Lockheed Martin and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Long-term sustainment costs
Positive Signals
- Critical national security program
- Experienced contractor
- Ensures weapon system modernization
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense systems. Spending in this area is often characterized by long-term contracts, high technical complexity, and significant government oversight due to national security implications.
Small Business Impact
No information is provided regarding small business participation in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracting plans are robustly implemented and monitored.
Oversight & Accountability
Oversight will be crucial given the sole-source nature of the award and the complexity of the ICBM program. The Department of Defense and its Inspector General should ensure rigorous monitoring of performance, costs, and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns without strong oversight.
- Dependency on a single contractor for critical system.
- Long-term sustainment costs may escalate.
- Cybersecurity risks associated with sensitive defense data.
Tags
engineering-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $92.3 million to LOCKHEED MARTIN CORP. IGF::CT::IGF THE ICBM FUZE WSIC EFFORT WILL PROVIDE SUPPORT TO THE ICBM FUZE PROGRAM OFFICE IN ITS EFFORTS TO INTEGRATE, QUALIFY AND CERTIFY THE NEW SANDIA NATIONAL LAB MK21/W87 REPLACEMENT FUZE INTO THE MMIII WEAPON SYSTEM BY PROVIDING WEAPON SYSTEM INTEGRATION, SUSTAINING ENGINEERING, MODIFICATION OF SYSTEMS AND EQUIPMENT, SOFTWARE MAINTENANCE, DEVELOPMENTAL ENGINEERING, PRODUCTION ENGINEERING AND PROCUREMENT SERVICES.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $92.3 million.
What is the period of performance?
Start: 2015-01-29. End: 2020-01-28.
What was the specific justification for awarding this contract on a sole-source basis, and has it been independently validated?
The provided data indicates a sole-source award, but the specific justification is not detailed. Typically, sole-source awards require a compelling reason, such as unique capabilities, urgent need, or lack of alternatives. Independent validation of this justification is essential to ensure fair competition was not improperly bypassed and that the government's interests were protected.
How does the per-unit cost or overall contract value compare to similar ICBM component integration efforts, if any?
Direct comparison is challenging without specific benchmarks for similar ICBM fuze integration projects. The $92.3 million contract value over five years suggests a significant undertaking. A detailed cost analysis by the government, potentially involving independent cost estimators, would be necessary to assess if the pricing is reasonable and reflects fair market value.
What are the key performance indicators (KPIs) and metrics used to measure the success and effectiveness of Lockheed Martin's support for the ICBM Fuze Program?
The contract likely includes specific performance work statements (PWS) with defined deliverables and acceptance criteria. Key metrics would probably focus on successful integration, qualification, and certification of the new fuze, as well as the timeliness and quality of engineering and sustainment services provided. Regular performance reviews and audits are standard for such critical defense contracts.
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: 230 MALL BLVD, KING OF PRUSSIA, PA, 19406
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $109,851,573
Exercised Options: $109,851,573
Current Obligation: $92,307,974
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821414D0002
IDV Type: IDC
Timeline
Start Date: 2015-01-29
Current End Date: 2020-01-28
Potential End Date: 2020-01-28 00:00:00
Last Modified: 2025-04-16
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (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)