The U.S. Dept. of Defense placed a new, $476.8-million contract with Lockheed Martin Corp. to supply a Guided Multiple Launch Rocket System for the U.S. Army. Most of the details of the combination cost-plus-fixed-fee / firm-fixed-price contract were undetailed by Defense, but it noted the completion date is set for August 15, 2025.
The Pentagon indicated that bidding was solicited through the internet – and only one bid was received.
A “cost-plus-fixed-fee” contract establishes a fee at the inception of the contract to be paid to the contractor, and that fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract.
A “firm-fixed-price” contract establishes a price that is not subject to any adjustment, regardless of the contractor's cost to complete the assignment.
Guided Multiple Launch Rocket Systems (GMLRS) are the primary munitions round for Lockheed-produced HIMARS and MLRS rocket launchers. They feature a GPS-aided inertial guidance package and enhanced maneuverability capabilities.
Last year Lockheed announced it had delivered the 50,000th GMLRS to the U.S. Army, and at that time reported a new contract worth $1.2 billion to produce over 9,000 GMLRs unitary and alternative warhead rockets and more than 2,000 low-cost/reduced-range practice rockets, along with integrated logistics support, for the Army, U.S. Marine Corps, and foreign customers.