DoD awards $87.6M for PAVEWAY II Production Units to Lockheed Martin, highlighting ammunition manufacturing

Contract Overview

Contract Amount: $87,627,480 ($87.6M)

Contractor: Lockheed Martin Corp

Awarding Agency: Department of Defense

Start Date: 2016-07-11

End Date: 2018-07-31

Contract Duration: 750 days

Daily Burn Rate: $116.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PAVEWAY II PRODUCTION UNITS

Place of Performance

Location: ARCHBALD, LACKAWANNA County, PENNSYLVANIA, 18403

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $87.6 million to LOCKHEED MARTIN CORP for work described as: PAVEWAY II PRODUCTION UNITS Key points: 1. Significant contract value for ammunition production. 2. Lockheed Martin is a major defense contractor. 3. Full and open competition was utilized. 4. Contract spans two delivery orders over two years.

Value Assessment

Rating: good

The total award amount is $87.6 million. Without specific per-unit cost data or comparable contract benchmarks, a precise value assessment is difficult. However, the firm fixed-price structure suggests a defined cost expectation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices and encourage cost-efficiency.

Taxpayer Impact: Taxpayer funds are utilized for defense procurement. The competitive nature of the award aims to ensure value for money, but ongoing monitoring is crucial.

Public Impact

Ensures supply of critical munitions for Air Force operations. Supports jobs within the defense manufacturing sector. Potential for follow-on contracts based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by military readiness requirements and technological advancements in weaponry. Benchmarks are often tied to specific munition types and production volumes.

Small Business Impact

The data indicates the prime contractor is Lockheed Martin Corp, a large business. There is no explicit information provided regarding small business participation in this specific award or subcontracting efforts.

Oversight & Accountability

The Department of the Air Force is the contracting activity. Oversight would typically involve contract management, performance monitoring, and ensuring compliance with terms and conditions throughout the contract duration.

Related Government Programs

Risk Flags

Tags

ammunition-except-small-arms-manufacturi, department-of-defense, pa, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $87.6 million to LOCKHEED MARTIN CORP. PAVEWAY II PRODUCTION UNITS

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 $87.6 million.

What is the period of performance?

Start: 2016-07-11. End: 2018-07-31.

What is the historical cost trend for PAVEWAY II units?

Historical cost data for PAVEWAY II units is not provided in this award notice. Analyzing past contract awards for this munition, including any price adjustments or competitive bidding outcomes, would be necessary to establish a cost trend. This would help determine if current pricing is consistent with historical performance or if there are significant deviations.

What are the specific performance metrics for PAVEWAY II production?

The award notice does not detail specific performance metrics for PAVEWAY II production. Key performance indicators would typically include on-time delivery, quality control standards (e.g., defect rates), and adherence to technical specifications. The contracting agency would monitor these against contract requirements.

How does the unit cost compare to similar munitions manufactured by competitors?

A direct comparison of the unit cost for PAVEWAY II to similar munitions from competitors is not feasible with the provided data. Such an analysis would require access to pricing information for comparable systems from other manufacturers and potentially other government contracts. The 'full and open competition' suggests an attempt to achieve competitive pricing.

Industry Classification

NAICS: ManufacturingOther Fabricated Metal Product ManufacturingAmmunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 459 KENNEDY DR, ARCHBALD, PA, 18403

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $87,627,480

Exercised Options: $87,627,480

Current Obligation: $87,627,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA821311D0007

IDV Type: IDC

Timeline

Start Date: 2016-07-11

Current End Date: 2018-07-31

Potential End Date: 2018-07-31 00:00:00

Last Modified: 2018-02-01

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