DoD Awards $131M for PAVEWAY II Production, Including Computer and Air Foil Groups
Contract Overview
Contract Amount: $131,041,370 ($131.0M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2017-09-12
End Date: 2019-09-11
Contract Duration: 729 days
Daily Burn Rate: $179.8K/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 TO INCLUDE COMPUTER CONTROL GROUPS, AIR FOIL GROUPS -10, -12, AND -16.
Place of Performance
Location: ARCHBALD, LACKAWANNA County, PENNSYLVANIA, 18403
Plain-Language Summary
Department of Defense obligated $131.0 million to LOCKHEED MARTIN CORP for work described as: PAVEWAY II PRODUCTION UNITS TO INCLUDE COMPUTER CONTROL GROUPS, AIR FOIL GROUPS -10, -12, AND -16. Key points: 1. The contract is for PAVEWAY II production units, encompassing critical computer and air foil components. 2. Lockheed Martin Corp. is the sole awardee, indicating a specific capability or existing relationship. 3. The award was made under full and open competition, suggesting a broad market search. 4. The contract type is Firm Fixed Price, providing cost certainty for the government.
Value Assessment
Rating: good
The award amount of $131,041,370 appears reasonable for specialized defense production. Benchmarking against similar complex munitions or guidance system contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The specific nature of the PAVEWAY II components may have limited the number of responsive bidders.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bids and driving down prices.
Public Impact
Enhances precision-guided munitions capabilities for the Department of Defense. Supports advanced targeting and navigation systems for military aircraft. Contributes to the operational readiness of U.S. and allied forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition if specialized manufacturing capabilities are scarce.
- Risk of cost overruns if production complexities are underestimated.
Positive Signals
- Firm Fixed Price contract provides cost predictability.
- Awarded under Full and Open Competition, maximizing potential for competitive pricing.
- Supports critical defense modernization efforts.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on precision-guided munitions. Spending in this area is driven by military modernization and operational requirements.
Small Business Impact
The data indicates the prime contractor is Lockheed Martin Corp. There is no explicit information regarding small business participation in this specific award, which warrants further investigation.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, responsible for ensuring contractor compliance and product quality. Oversight is crucial for complex defense procurements.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for limited competition due to specialized components.
- Need to verify small business subcontracting plan.
- Risk of obsolescence if technology rapidly advances.
- Dependence on a single prime contractor for critical components.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $131.0 million to LOCKHEED MARTIN CORP. PAVEWAY II PRODUCTION UNITS TO INCLUDE COMPUTER CONTROL GROUPS, AIR FOIL GROUPS -10, -12, AND -16.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $131.0 million.
What is the period of performance?
Start: 2017-09-12. End: 2019-09-11.
What is the specific technological advantage or unique capability that PAVEWAY II production provides, justifying this significant investment?
The PAVEWAY II system, often associated with laser-guided bombs, provides enhanced precision strike capabilities. Its integration with computer control groups and specific air foil configurations likely allows for improved accuracy, range, and maneuverability, crucial for minimizing collateral damage and maximizing effectiveness against high-value targets in complex operational environments.
Given the 'full and open competition' designation, what was the level of actual bidding interest, and were there any specific factors that might have limited broader participation?
While designated 'full and open,' the specialized nature of PAVEWAY II components, including computer control and specific air foil groups, may have inherently limited the number of capable bidders. Further analysis of the solicitation's response rate and any pre-solicitation activities would clarify the extent of actual competition and potential barriers to entry for other manufacturers.
How does the per-unit cost of these PAVEWAY II production units compare to similar munitions or guidance systems procured by the DoD or allied nations?
Benchmarking the per-unit cost requires detailed cost breakdowns and comparison with similar systems. Without specific unit cost data or access to classified pricing intelligence, a direct comparison is difficult. However, the $131M award for an unspecified number of units suggests a significant per-unit cost, typical for advanced, precision-guided munitions.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (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: $131,041,370
Exercised Options: $131,041,370
Current Obligation: $131,041,370
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: 2017-09-12
Current End Date: 2019-09-11
Potential End Date: 2019-09-11 00:00:00
Last Modified: 2019-04-10
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