DoD awards $38.8M for Sniper Advanced Targeting Pods to Lockheed Martin, facing limited competition
Contract Overview
Contract Amount: $38,787,589 ($38.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-04-15
End Date: 2023-06-30
Contract Duration: 2,267 days
Daily Burn Rate: $17.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SNIPER ADVANCED TARGETING PODS (ATP) FOR KUWAIT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $38.8 million to LOCKHEED MARTIN CORPORATION for work described as: SNIPER ADVANCED TARGETING PODS (ATP) FOR KUWAIT Key points: 1. High value contract for critical defense technology. 2. Sole-source award limits competitive pricing. 3. Potential for cost overruns due to lack of competition. 4. Supports advanced aerial surveillance and targeting capabilities.
Value Assessment
Rating: fair
The contract value of $38.8 million for Sniper ATPs is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems or previous awards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits the government's ability to leverage market forces to achieve the best possible price.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive price discovery, potentially leading to higher costs than if multiple vendors were considered.
Public Impact
Enhances precision strike capabilities for the Air Force. Supports intelligence, surveillance, and reconnaissance (ISR) missions. Ensures operational readiness for deployed air assets. Procurement of advanced targeting systems is crucial for modern warfare.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing
Positive Signals
- Critical defense capability
- Long-term contract duration
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced targeting systems. Spending in this area is driven by national security needs and technological advancements in military hardware.
Small Business Impact
The awardee, Lockheed Martin Corporation, is a large defense contractor. There is no indication of small business participation in this specific contract award, which is common for highly specialized defense systems.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The sole-source nature of the award warrants close monitoring to ensure fair pricing and effective delivery of the targeting pods.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of alternatives.
- Dependency on a single supplier for critical technology.
- Need for strong oversight to ensure value for money.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.8 million to LOCKHEED MARTIN CORPORATION. SNIPER ADVANCED TARGETING PODS (ATP) FOR KUWAIT
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 $38.8 million.
What is the period of performance?
Start: 2017-04-15. End: 2023-06-30.
What is the justification for the sole-source award of the Sniper ATPs, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of Defense should have documented this justification. To ensure fair pricing, they may rely on historical pricing data, independent cost estimates, or engage in detailed price analysis with the sole contractor.
What are the long-term implications of relying on sole-source contracts for critical defense systems like the Sniper ATP?
Sole-source contracts can lead to reduced competition over time, potentially increasing costs and limiting innovation. It may also create vendor lock-in, making it difficult to switch to alternative solutions. This approach requires robust government oversight to mitigate these risks and ensure sustained value.
How does the performance of the Sniper ATP compare to alternative targeting systems, and is there a plan for future competitive procurements?
Performance comparisons are usually found in internal DoD testing and evaluation reports. While this award is sole-source, the DoD often plans for future competitive procurements or technology refreshes to introduce competition and leverage advancements. The specific plan for future Sniper ATP procurements would need to be assessed.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,787,589
Exercised Options: $38,787,589
Current Obligation: $38,787,589
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $87,808
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854015D0001
IDV Type: IDC
Timeline
Start Date: 2017-04-15
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2023-07-11
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