DoD awards $64.9M for Sniper ATP Pods to Lockheed Martin, raising value-for-money questions

Contract Overview

Contract Amount: $64,897,284 ($64.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2017-11-29

End Date: 2021-11-30

Contract Duration: 1,462 days

Daily Burn Rate: $44.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SNIPER ATP PODS FOR QATAR

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $64.9 million to LOCKHEED MARTIN CORPORATION for work described as: SNIPER ATP PODS FOR QATAR Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of over 4 years suggests a substantial program. 3. High value for specialized defense equipment. 4. No small business set-aside indicates large prime contractor focus. 5. Delivery order under an existing contract structure. 6. Geographic location of performance in Florida.

Value Assessment

Rating: questionable

The contract value of $64.9 million for Sniper ATP Pods is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The sole-source nature of the award means that taxpayers may not have received the most competitive pricing. Further analysis would require comparing this award to similar systems or previous procurements of this specific system, if available, to assess if the pricing is aligned with market rates or historical trends.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Lockheed Martin Corporation, was considered. This approach is typically used when a unique capability is required or when only one source can provide the necessary goods or services. The lack of competition means that the government did not benefit from a bidding war among multiple suppliers, which could have driven down prices.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price is offered.

Public Impact

The U.S. Air Force benefits from the acquisition of advanced targeting pods. These pods enhance the precision strike capabilities of military aircraft. The contract supports advanced defense technology development and manufacturing. Work performed in Florida has implications for the local aerospace workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing cost to taxpayers.
Lack of transparency in pricing due to no-bid award.
Long contract duration could mask inefficiencies if not closely managed.

Positive Signals

Award to a known, established defense contractor with a track record.
Focus on advanced technology that enhances military capabilities.
Delivery order structure may indicate efficient use of existing contract vehicles.

Sector Analysis

The defense industry is characterized by long-term contracts, high research and development costs, and significant government spending. Lockheed Martin is a major player in this sector, particularly in aerospace and defense systems. This contract for Sniper ATP Pods fits within the broader market for advanced targeting and sensor systems, which are critical for modern air warfare. Comparable spending benchmarks would involve looking at other advanced pod systems or similar defense electronics procurements.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The prime contractor, Lockheed Martin, is a large corporation. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve a network of smaller suppliers.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). The contract is a delivery order under an existing contract, suggesting some level of pre-existing oversight. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Advanced Targeting Pods
Defense Electronics
Aerospace Manufacturing
Military Aircraft Systems

Risk Flags

Sole-source award
Lack of competitive pricing transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.9 million to LOCKHEED MARTIN CORPORATION. SNIPER ATP PODS FOR QATAR

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 $64.9 million.

What is the period of performance?

Start: 2017-11-29. End: 2021-11-30.

What is the specific capability provided by the Sniper ATP Pods, and how does it compare to alternative systems?

The Sniper Advanced Targeting Pod (ATP) is a system designed to provide aircrews with high-resolution imagery for target identification and tracking, enabling precision-guided munitions delivery. It offers advanced features such as a high-definition infrared sensor, laser designation, and range gating capabilities. Compared to older targeting pods, the Sniper ATP offers improved accuracy, longer standoff ranges, and enhanced performance in various weather conditions. While specific comparisons to all alternative systems are complex and depend on the mission profile, the Sniper ATP is considered a state-of-the-art system widely used by the U.S. Air Force and allied nations on platforms like the F-16, F-15, A-10, and B-1 bomber.

Given the sole-source award, what is the justification for not seeking competitive bids?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For advanced defense systems like the Sniper ATP Pods, this justification often stems from proprietary technology, unique manufacturing capabilities, or the need for compatibility with existing platforms and systems where only the original equipment manufacturer can fulfill the requirement. The Department of Defense would have a formal justification document outlining the specific reasons why competition was not feasible or advantageous in this instance. This could include factors like the need for specialized knowledge, existing infrastructure, or the prohibitive cost and time required to develop an alternative.

What is the historical spending trend for Sniper ATP Pods or similar targeting systems by the Department of Defense?

Historical spending on Sniper ATP Pods and similar advanced targeting systems by the Department of Defense has been substantial, reflecting the ongoing need for precision strike capabilities. While specific figures for the Sniper ATP alone across all contracts are not readily available in this dataset, Lockheed Martin has been a primary supplier of these systems for many years. The DoD consistently invests billions annually in avionics, sensors, and targeting systems to maintain technological superiority. Analyzing past contract awards for targeting pods, including those from competitors, would reveal a pattern of significant, recurring investment in this technology, driven by operational requirements and the desire to minimize collateral damage through precision engagement.

What are the performance metrics or Key Performance Indicators (KPIs) associated with the Sniper ATP Pods?

Performance metrics for the Sniper ATP Pods typically revolve around their ability to detect, identify, track, and designate targets with high accuracy and reliability under various operational conditions. Key Performance Indicators (KPIs) would likely include metrics such as target detection range, accuracy of target coordinates (e.g., Circular Error Probable - CEP), reliability (Mean Time Between Failures - MTBF), system availability, and the quality of imagery provided for situational awareness and weapon guidance. The system's ability to operate effectively in different weather conditions (e.g., cloud cover, smoke) and its integration capabilities with different aircraft platforms and weapon systems are also critical performance aspects.

What is the track record of Lockheed Martin Corporation in delivering complex defense systems on time and within budget?

Lockheed Martin Corporation has a long and extensive track record of delivering complex defense systems to the U.S. Department of Defense and international allies. As one of the largest defense contractors globally, they are involved in numerous high-profile programs, including fighter jets (F-35, F-22), missile defense systems, and advanced sensor technologies like the Sniper ATP. While the company generally meets its contractual obligations, like any large defense contractor, it has faced challenges and scrutiny on specific programs regarding cost overruns and schedule delays. However, for established systems like the Sniper ATP, which has been in service for a considerable period, the delivery performance is generally considered reliable, supported by ongoing sustainment and upgrade contracts.

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: $64,897,284

Exercised Options: $64,897,284

Current Obligation: $64,897,284

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $84,634

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA854015D0001

IDV Type: IDC

Timeline