The U.S. Department of War has modified an existing contract to provide Lockheed Martin Corp. (NYSE:LMT) with $83.2 million to manufacture further missiles intended for the Army's Conventional Prompt Strike program, the department announced today.
The award is a cost-plus-incentive-fee change to a standing Navy contract and is specifically designated to finance the procurement of All Up Rounds that will meet Army requirements. The work is to be performed by Lockheed Martin Space in Littleton, Colorado, under contract N00030-22-C-1025.
Execution of the program will be distributed across a number of U.S. sites. The announced breakdown assigns 31% of work to Denver, Colorado; 26% to Magna, Utah; 14% to Cortland, Alabama; 10% to Simsbury, Connecticut; and 7% each to East Aurora and Owego, New York. Sunnyvale, California, is slated to receive 2% of the work, with the remaining 3% spread among various other locations.
At the time the modification was awarded, the Army will obligate $79.3 million in fiscal 2025 Missile Procurement funds. The department noted that those funds will not expire at the close of the current fiscal year.
The contract modification was issued as a sole source award by Strategic Systems Programs in Washington, D.C., under the authority of 10 U.S. Code 3204 (a)(1). The work is scheduled for completion on June 30, 2029.
Program and contracting details
This action amends an existing Navy contract rather than creating a new procurement vehicle, and it uses the cost-plus-incentive-fee structure to cover production of the All Up Rounds. Lockheed Martin Space in Littleton will serve as the performing location under the contract number provided by the department.
Geographic and fiscal notes
The contract specifies a multi-location execution plan with the largest shares of work allocated to Denver and Magna, and smaller portions to facilities in Alabama, Connecticut, New York, and California. The Army is obligating $79.3 million in missile procurement appropriations for fiscal 2025, and those funds are not subject to expiration at the end of the fiscal year.
Timeline and oversight
Strategic Systems Programs in Washington, D.C., issued the sole source award under the cited provision of federal law. The department sets the expected completion date for the contracted work as June 30, 2029.
Note: This report covers the contract modification announced by the department and presents the facts as released, including the contract number, funding amounts, work distribution, award authority, and anticipated completion date.