DoD awards $43.2M for Sniper Targeting Pods, with Lockheed Martin as prime contractor

Contract Overview

Contract Amount: $43,245,245 ($43.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2010-03-12

End Date: 2012-03-31

Contract Duration: 750 days

Daily Burn Rate: $57.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SNIPER TARGETING PODS W/ SHIPPING CONTAINERS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $43.2 million to LOCKHEED MARTIN CORPORATION for work described as: SNIPER TARGETING PODS W/ SHIPPING CONTAINERS Key points: 1. Contract value appears reasonable given the specialized nature of advanced targeting systems. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The contract duration of 750 days indicates a significant, multi-year effort. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The award was made to a single bidder, raising questions about the extent of competition. 6. Geographic location of performance in Florida may indicate specific operational or logistical needs.

Value Assessment

Rating: fair

The contract value of $43.2 million for Sniper Targeting Pods, including shipping containers, is difficult to benchmark without detailed specifications and unit counts. However, given the advanced technology involved in modern targeting pods, this figure may represent fair value. The firm fixed-price nature of the contract suggests that the government has secured a defined cost, but the absence of multiple bids in the final award stage warrants scrutiny regarding potential overpayment compared to a more competitive scenario.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the initial solicitation was broad, specific sources were excluded before the final award. This suggests a complex procurement process where certain capabilities or existing relationships might have narrowed the field. Only one bid was received and accepted, which significantly limits price discovery and may indicate barriers to entry for other potential suppliers or a lack of market interest.

Taxpayer Impact: The limited competition and single bid mean taxpayers may not have benefited from the most competitive pricing achievable. This could translate to a higher overall cost for the government compared to a scenario with multiple, competing offers.

Public Impact

The primary beneficiaries are the U.S. Air Force, receiving advanced targeting capabilities for its aircraft. The contract delivers essential equipment for intelligence, surveillance, and reconnaissance (ISR) missions. Performance is located in Florida, potentially impacting the local aerospace and defense workforce. Enhanced targeting systems improve operational effectiveness and reduce risk to aircrews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition resulting in a single bid raises concerns about price reasonableness.
The 'after exclusion of sources' clause suggests potential pre-selection or market limitations.
Lack of detailed cost breakdowns makes independent value assessment challenging.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Lockheed Martin is a well-established defense contractor with proven capabilities in this area.
The contract addresses a critical need for advanced targeting systems.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on defense electronics and avionics manufacturing. The market for advanced targeting pods is highly specialized, dominated by a few key players due to significant R&D investment and technological barriers. Comparable spending benchmarks are difficult to establish publicly, but such systems are critical components of modern air power, with significant investment across global defense budgets.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Given the specialized nature of advanced targeting pods and the prime contractor being Lockheed Martin, it is unlikely that small businesses would be directly awarded the prime contract. However, there may be subcontracting opportunities for small businesses within Lockheed Martin's supply chain, though these are not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight structures. The Air Force is responsible for managing the contract's performance and ensuring compliance with the firm fixed-price terms. Transparency is generally maintained through contract award databases, but detailed performance metrics and cost audits are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Airborne Sensor Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
Precision Guided Munitions
Defense Electronics Manufacturing
Aerospace Navigation Equipment

Risk Flags

Limited competition (single bid received)
Potential for price not being fully optimized due to lack of robust competition
Complexity of 'exclusion of sources' clause requires understanding of justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.2 million to LOCKHEED MARTIN CORPORATION. SNIPER TARGETING PODS W/ SHIPPING CONTAINERS

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 $43.2 million.

What is the period of performance?

Start: 2010-03-12. End: 2012-03-31.

What is the specific technical capability and intended use of the Sniper Targeting Pods being procured?

The Sniper Targeting Pod is an advanced, multi-target electro-optical/infrared (EO/IR) targeting system designed for use on a variety of military aircraft. It provides pilots with high-resolution imagery, enabling precise identification, tracking, and engagement of ground targets in various weather and lighting conditions. Its primary use is for intelligence, surveillance, and reconnaissance (ISR) missions, as well as for precision strike operations, enhancing situational awareness and reducing collateral damage. The pods are known for their long-range detection and tracking capabilities, allowing aircraft to remain at safer distances while still accurately identifying threats.

How does the $43.2 million contract value compare to historical spending on similar targeting pod systems?

Direct comparison of the $43.2 million contract value is challenging without knowing the exact quantity of pods and shipping containers, as well as the specific model and included features. However, advanced targeting pods are high-value, technologically sophisticated systems. Historical data suggests that individual pods can range from several hundred thousand to over a million dollars each, depending on capabilities. Considering this, $43.2 million for potentially dozens of pods and associated logistics (shipping containers) appears within a plausible range for a significant procurement. The firm fixed-price nature suggests cost certainty, but the limited competition impacts the ability to definitively assess value against market alternatives.

What are the primary risks associated with this contract, given the limited competition and single bidder?

The primary risk associated with this contract is the potential for suboptimal pricing due to limited competition. When only one bid is received after an 'exclusion of sources' process, there is a reduced incentive for the contractor to offer the most competitive price. This could lead to the government paying more than necessary. Other risks include potential performance issues if the sole bidder faces unforeseen production or supply chain challenges, although Lockheed Martin's established track record mitigates this somewhat. There's also a risk that the exclusion of other sources may have inadvertently removed capable competitors, limiting future market options.

What is the significance of the contract type being 'Firm Fixed Price'?

A 'Firm Fixed Price' (FFP) contract type is significant because it places the majority of the cost risk on the contractor, Lockheed Martin. The agreed-upon price is not subject to adjustment based on the contractor's cost experience during performance. This provides the U.S. Air Force with cost certainty and predictability. While beneficial for budget management, FFP contracts often require thorough pre-award price analysis to ensure the initial price is fair and reasonable, especially when competition is limited, as the contractor bears the risk of cost overruns.

What does 'Full and Open Competition After Exclusion of Sources' imply about the procurement process?

This specific contract clause, 'Full and Open Competition After Exclusion of Sources,' suggests a nuanced procurement approach. Initially, the solicitation may have been intended for broad competition. However, certain potential offerors were subsequently excluded based on specific criteria (e.g., technical qualifications, past performance, security requirements, or proprietary technology). Following this exclusion, the remaining pool of eligible sources competed. The fact that only one bid was ultimately received indicates that either the exclusion criteria were very stringent, the market for this specific technology is highly concentrated, or other potential bidders chose not to respond.

How does the performance location in Florida (st: FL) impact the contract or its execution?

The performance location in Florida (st: FL) suggests that either Lockheed Martin has significant manufacturing or integration facilities in that state relevant to the Sniper Targeting Pods, or that the shipping and logistics associated with the containers are best managed from that region. It could also indicate proximity to a key Air Force base or operational theater requiring these systems. Performance in Florida may have implications for the local economy, job creation within the state's aerospace and defense sector, and potentially state-level tax revenues. It also dictates the logistical chain for delivery and potential support.

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: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,245,245

Exercised Options: $43,245,245

Current Obligation: $43,245,245

Contract Characteristics

Cost or Pricing Data: YES

Timeline