DoD Awards $304M to Lockheed Martin for Missile Manufacturing, Ending in 2005
Contract Overview
Contract Amount: $304,314,813 ($304.3M)
Contractor: Lockheed Martin Integrated Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2003-12-05
End Date: 2005-12-01
Contract Duration: 727 days
Daily Burn Rate: $418.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $304.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC for work described as: Key points: 1. Significant contract value of over $304 million awarded to a major defense contractor. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Risk is moderate, given the nature of guided missile manufacturing and a fixed-price contract. 4. Sector focus is Defense, specifically guided missile and space vehicle manufacturing.
Value Assessment
Rating: good
The contract value of $304M over two years suggests a substantial but potentially reasonable price for specialized missile manufacturing. Benchmarking against similar complex defense systems would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The impact on price discovery is likely positive, as multiple bidders would have been incentivized to offer their best terms.
Taxpayer Impact: Taxpayer funds are being used for critical defense procurement. Competitive bidding aims to ensure value for money, but the final cost is substantial.
Public Impact
Supports national defense capabilities through advanced missile technology. Contributes to the aerospace and defense industry's economic activity. Ensures the availability of critical components for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 727 days may lead to cost overruns if not managed tightly.
- Firm Fixed Price contract can shift risk to the contractor, but may also inflate initial bids.
Positive Signals
- Full and open competition suggests potential for cost savings.
- Award to a known entity like Lockheed Martin implies established manufacturing capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of guided missiles and space vehicles. Spending in this area is critical for national security and often involves high-value, specialized procurements.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Analysis would require further details on subcontracting plans.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force, ensuring contract compliance and performance. Accountability for delivery and quality rests with Lockheed Martin.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration and potential for cost escalation.
- Reliance on a single large contractor for critical defense components.
- Potential for scope creep if requirements are not clearly defined.
- Geopolitical factors influencing demand for missile systems.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, fl, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $304.3 million to LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN INTEGRATED SYSTEMS, LLC.
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 $304.3 million.
What is the period of performance?
Start: 2003-12-05. End: 2005-12-01.
What was the specific type of guided missile or space vehicle manufactured under this contract, and how does its complexity influence the cost?
The specific product is not detailed, but guided missiles and space vehicles are inherently complex, involving advanced technology, precision engineering, and rigorous testing. This complexity directly drives up manufacturing costs due to specialized materials, labor, research and development, and stringent quality control requirements. The $304M award reflects the high-stakes nature of this defense procurement.
How did the 'full and open competition' process specifically impact the final negotiated price compared to a sole-source award?
Full and open competition allows multiple qualified vendors to bid, fostering a competitive environment that typically drives down prices. The final negotiated price is likely lower than it would have been under a sole-source contract where the government has limited leverage. This process encourages vendors to offer their most competitive rates and terms to secure the award.
What are the potential long-term implications for the Department of Defense's strategic capabilities given this investment in missile manufacturing?
This investment likely enhances the DoD's strategic missile capabilities, ensuring readiness and technological superiority. It supports the development and production of platforms crucial for national defense. The long-term implications include maintaining deterrence, projecting power, and adapting to evolving geopolitical threats through advanced weaponry.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 SAND LAKE ROAD, ORLANDO, FL, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-12-05
Current End Date: 2005-12-01
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2013-10-22
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