DoD Awards $117M to Lockheed Martin for LANTIRN Pod Upgrade, Lacking Competition
Contract Overview
Contract Amount: $116,849,438 ($116.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-12-14
End Date: 2019-12-04
Contract Duration: 3,642 days
Daily Burn Rate: $32.1K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LANTIRN POD OFP UPGRADE
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $116.8 million to LOCKHEED MARTIN CORPORATION for work described as: LANTIRN POD OFP UPGRADE Key points: 1. Significant contract value of $116.8M for an avionics upgrade. 2. Sole-source award to Lockheed Martin suggests limited market competition. 3. Potential risk associated with a long contract duration (approx. 10 years). 4. Spending falls within the Defense sector, specifically targeting aircraft systems.
Value Assessment
Rating: fair
The $116.8M contract value for the LANTIRN Pod OFP Upgrade is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or previous upgrades.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded sole-source to Lockheed Martin. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive pressure on pricing for this critical avionics upgrade.
Public Impact
Enhances capabilities of existing military aircraft, potentially improving mission effectiveness. Long-term contract duration implies sustained reliance on this specific technology. Investment in aging aircraft systems, raising questions about modernization strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition under SAP
Positive Signals
- Critical system upgrade
- Established contractor
Sector Analysis
This contract falls within the Defense sector, specifically for the manufacturing of aeronautical and nautical systems and instruments. The $116.8M award is significant for this sub-sector, particularly for upgrades to existing platforms.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large defense contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA). Oversight effectiveness for sole-source contracts is crucial to ensure fair pricing and performance.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration may lock in potentially suboptimal pricing.
- Lack of competition under SAP raises concerns about price discovery.
- Potential for cost overruns on a long-term, sole-source contract.
- Dependency on a single contractor for critical system upgrades.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $116.8 million to LOCKHEED MARTIN CORPORATION. LANTIRN POD OFP UPGRADE
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $116.8 million.
What is the period of performance?
Start: 2009-12-14. End: 2019-12-04.
What is the specific technical improvement offered by this LANTIRN Pod OFP Upgrade, and how does it enhance warfighter capabilities?
The LANTIRN (Low Altitude Navigation and Targeting Infrared for Night) pod upgrade likely involves software and potentially hardware enhancements to improve the targeting and navigation systems of military aircraft. These upgrades typically aim to increase accuracy, expand the range of detectable targets, improve sensor resolution, and integrate new functionalities, ultimately enhancing the mission effectiveness and survivability of the aircrew.
Given the sole-source nature of this award, what steps were taken to ensure the government received a fair and reasonable price?
For sole-source contracts, especially those exceeding certain thresholds, the government typically requires the contractor to submit detailed cost and pricing data. Contracting officers then conduct a thorough review, often involving cost realism analysis and price negotiation, to determine if the proposed price is fair and reasonable. However, the absence of competition inherently limits the government's leverage in price discovery.
What is the long-term strategy for LANTIRN pods, and will this upgrade extend their service life significantly, or is it a bridge to newer systems?
The long contract duration (nearly 10 years) suggests this upgrade is intended to significantly extend the operational life and relevance of the LANTIRN pods. It could be a cost-effective measure to maintain capability on existing platforms rather than immediately investing in entirely new systems. However, the DoD's broader modernization plans will ultimately determine if this is a long-term solution or a temporary measure.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $116,849,438
Exercised Options: $116,849,438
Current Obligation: $116,849,438
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-12-14
Current End Date: 2019-12-04
Potential End Date: 2019-12-04 00:00:00
Last Modified: 2020-01-29
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