Lockheed Martin awarded $196M for avionics, with a significant portion for optical sighting and ranging equipment

Contract Overview

Contract Amount: $63,256,510 ($63.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2004-02-20

End Date: 2008-07-28

Contract Duration: 1,620 days

Daily Burn Rate: $39.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200405!000091!5700!GJ45 !WR-ALC/LSK - AVIONICS !FA852204C0001 !A!N! !N! !P00001!20040220!20050531!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000006052004!Y!N!000000000000!1240!OPTICAL SIGHTING AND RANGING EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !811212!E! !1! ! !A! ! !99990909!B! ! !N!Z!B!U!J!1!001!N!4A!A!N!F! ! !N!C!N! ! ! !A!A!A!A!00 !A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $63.3 million to LOCKHEED MARTIN CORPORATION for work described as: 200405!000091!5700!GJ45 !WR-ALC/LSK - AVIONICS !FA852204C0001 !A!N! !N! !P00001!20040220!20050531!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORAN… Key points: 1. Contract value of $196.2M for avionics and optical sighting equipment. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. Contract duration of 1620 days (approx. 4.4 years). 4. Primarily for the Department of the Air Force. 5. The North American Industry Classification System (NAICS) code is 811212, indicating computer and office machine repair and maintenance. 6. The Product Service Code (PSC) is A7, for electronics and communication equipment.

Value Assessment

Rating: fair

The contract value of $196.2 million for avionics and optical sighting equipment appears substantial. Benchmarking this against similar contracts is difficult without more specific details on the exact nature of the avionics and sighting equipment. However, the duration of over 1600 days suggests a long-term need. The firm-fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price was set competitively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicated by 'NOT AVAILABLE FOR COMPETITION'. This suggests a sole-source award, potentially due to specialized requirements, existing contractor relationships, or a lack of market research to identify alternative sources. Without competition, there is a reduced opportunity for price discovery and potentially higher costs for the government.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates strong internal oversight to ensure the price is fair and reasonable.

Public Impact

The primary beneficiary is the Department of the Air Force, receiving critical avionics and sighting equipment. The services delivered include the provision and potential maintenance of advanced electronic and optical systems. The geographic impact is likely concentrated around Air Force bases where this equipment is deployed or maintained. Workforce implications may include specialized technicians for installation, maintenance, and operation of the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
The specialized nature of avionics and sighting equipment may limit available contractors.
Long contract duration could lead to price escalation if not managed carefully.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Award to a major defense contractor like Lockheed Martin suggests access to established expertise and technology.
The contract supports critical Air Force operational capabilities.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on aerospace and defense electronics. The market for advanced avionics and optical sighting systems is highly specialized, dominated by a few large defense contractors. Spending in this area is driven by military modernization efforts and the need for cutting-edge surveillance and targeting capabilities. Comparable spending benchmarks would typically be found within the broader category of aerospace and defense procurement, often measured in billions of dollars annually.

Small Business Impact

There is no indication of small business set-asides for this contract. Given the specialized nature of avionics and optical sighting equipment, it is likely that prime contractors like Lockheed Martin would subcontract to other specialized firms, which may include small businesses. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be tied to contract performance, delivery schedules, and adherence to specifications. Transparency is often limited for defense contracts due to national security considerations, but contract award data is publicly available through systems like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Avionics Modernization Programs
Defense Electronics Procurement
Optical and Electro-Optical Systems
Aerospace Equipment Manufacturing
Military Aircraft Support Services

Risk Flags

Sole-source award limits price competition.
Potential for cost escalation over the contract's long duration.
Complexity of avionics and sighting equipment may pose technical risks.
Lack of specific details on equipment type hinders deeper analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.3 million to LOCKHEED MARTIN CORPORATION. 200405!000091!5700!GJ45 !WR-ALC/LSK - AVIONICS !FA852204C0001 !A!N! !N! !P00001!20040220!20050531!196189385!196189385!834951691!N!LOCKHEED MARTIN CORPORATION !5600 WEST SAND LAKE ROAD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000006052004!Y!N!000000000000!1240!OPTICAL SIGHTING AND RANGING EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !811212!E! !1! ! !A! ! !999

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN CORPORATION.

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 $63.3 million.

What is the period of performance?

Start: 2004-02-20. End: 2008-07-28.

What is the specific type of avionics and optical sighting equipment being procured under this contract?

The provided data indicates the contract is for 'AVIONICS' and specifically mentions 'OPTICAL SIGHTING AND RANGING EQUIPMENT' under the NAICS code 811212 (Computer and Office Machine Repair and Maintenance) and PSC A7 (Electronics and Communication Equipment). However, the precise technical specifications, models, or intended platforms for this equipment are not detailed in the summary data. This level of detail is typically found in the contract's statement of work, which is not publicly available in this format. Understanding the specific equipment is crucial for assessing its technological advancement, necessity, and potential for obsolescence.

How does the $196.2 million contract value compare to historical spending on similar avionics and sighting equipment by the Air Force?

Comparing the $196.2 million contract value requires identifying historical contracts for identical or highly similar avionics and optical sighting equipment. Without specific product details, this comparison is challenging. However, the Department of Defense, and specifically the Air Force, spends billions annually on aircraft components, electronics, and weapon systems. A contract of this magnitude for specialized equipment is not unusual within the defense budget. To provide a precise comparison, one would need to analyze past awards for comparable systems, considering factors like technological generation, quantity, and scope of work (e.g., procurement vs. sustainment).

What are the key performance indicators (KPIs) and deliverables associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific deliverables for this contract. Typically, for a firm-fixed-price contract involving complex equipment like avionics and sighting systems, KPIs would focus on aspects such as on-time delivery, adherence to technical specifications, reliability, and performance metrics of the equipment once fielded. Deliverables would likely include the physical equipment, technical manuals, training materials, and potentially maintenance support documentation. The contract's statement of work and associated inspection/acceptance criteria would formally define these requirements.

What is Lockheed Martin Corporation's track record with the Department of the Air Force for similar contracts?

Lockheed Martin Corporation is a major defense contractor with an extensive history of performing contracts for the Department of the Air Force across a wide range of programs, including aircraft, electronics, and weapon systems. They are known for large-scale, complex projects. Their track record typically involves delivering advanced technological solutions, though like any large contractor, they may have experienced performance variations across different contracts. Specific performance metrics for this particular contract type would require a deeper dive into past performance evaluations and contract histories available through government databases.

What is the risk assessment associated with this contract, considering its sole-source nature and the technology involved?

The primary risk associated with this contract stems from its sole-source nature, which limits competitive pressure and could lead to higher costs than if the contract were competed. The technology involved—avionics and optical sighting equipment—is often complex, cutting-edge, and subject to rapid obsolescence, introducing technical risks. There's also a risk of contractor performance issues, cost overruns (though mitigated by FFP), or schedule delays. The long duration (1620 days) increases the exposure to these risks over time. Mitigation strategies would involve robust government oversight, clear performance metrics, and potentially phased contract reviews.

Are there any known issues or concerns regarding Lockheed Martin's performance on previous contracts of this nature?

Without access to detailed past performance information (which is often contractor-specific and not always publicly disclosed in aggregate), it is difficult to definitively state if there are known issues with Lockheed Martin's performance on *this specific type* of contract. However, as a major defense contractor, Lockheed Martin's performance across its vast portfolio of contracts is subject to government review. Issues can range from minor delivery delays to more significant technical or cost challenges, depending on the contract's complexity and scope. General contract performance databases might offer insights, but a comprehensive assessment would require specific contract-level performance data.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 WEST SAND LAKE ROAD, ORLANDO, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline