USAF Awards $33M to Lockheed Martin for Sniper Pod Sustainment and Upgrades
Contract Overview
Contract Amount: $33,083,981 ($33.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2017-12-21
End Date: 2020-04-30
Contract Duration: 861 days
Daily Burn Rate: $38.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USAF COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUSTAINMENT, UPGRADES, AND DEVELOPMENT FOR THE AN/AAQ-33 SNIPER
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $33.1 million to LOCKHEED MARTIN CORPORATION for work described as: USAF COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUSTAINMENT, UPGRADES, AND DEVELOPMENT FOR THE AN/AAQ-33 SNIPER Key points: 1. The contract focuses on sustainment, upgrades, and development of the AN/AAQ-33 Sniper targeting pod. 2. Lockheed Martin Corporation is the sole awardee, indicating a lack of competition for this specific contract. 3. The contract value is $33,083,980.86, with a duration of 861 days. 4. The primary sector is Defense, specifically for the Air Force's advanced targeting capabilities.
Value Assessment
Rating: fair
The contract value of $33M for sustainment and upgrades appears reasonable for advanced aerospace technology. However, without detailed cost breakdowns or comparisons to similar pod sustainment contracts, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the Sniper pod and the need for original equipment manufacturer support. This limits price discovery and potentially leads to higher costs.
Taxpayer Impact: Taxpayer funds are used for a critical defense system, but the lack of competition raises concerns about cost-effectiveness.
Public Impact
Enhances critical intelligence, surveillance, and reconnaissance (ISR) capabilities for the Air Force. Supports ongoing military operations by ensuring the functionality of advanced targeting systems. Potential for technological advancements in targeting pod systems through upgrade and development efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost justification provided.
- Potential for cost overruns in sustainment and upgrade phases.
Positive Signals
- Supports a critical defense asset.
- Focus on upgrades may improve system performance.
- Long-term sustainment ensures operational readiness.
Sector Analysis
This contract falls within the Defense sector, specifically supporting advanced avionics and targeting systems. Spending benchmarks for similar sustainment and upgrade contracts for complex military hardware can vary widely but often involve significant investment due to specialized technology and rigorous testing requirements.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm-fixed-price contract type provides some cost control, but the sole-source nature necessitates careful monitoring of performance and expenditures to ensure accountability.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost creep in sustainment and upgrades.
- Lack of transparency in pricing justification.
- Dependence on a single contractor for critical technology.
Tags
other-electronic-and-precision-equipment, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.1 million to LOCKHEED MARTIN CORPORATION. USAF COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUSTAINMENT, UPGRADES, AND DEVELOPMENT FOR THE AN/AAQ-33 SNIPER
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 $33.1 million.
What is the period of performance?
Start: 2017-12-21. End: 2020-04-30.
What is the specific justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or essential integration requirements with existing platforms. Agencies must conduct market research and document why full and open competition is not feasible. Fair and reasonable pricing is assessed through various methods, including historical pricing, comparison to similar items, or certified cost and pricing data from the contractor.
What are the projected cost savings or performance improvements expected from the upgrade and development efforts?
The projected cost savings or performance improvements are crucial metrics for evaluating the value of this contract. Upgrades could lead to enhanced accuracy, reduced maintenance needs, or new functionalities, ultimately improving mission effectiveness and potentially lowering long-term operational costs. Specific quantifiable benefits should be detailed in the contract's statement of work and performance metrics.
How will the sustainment activities ensure the long-term operational readiness and reliability of the Sniper targeting pod system?
Sustainment activities are vital for maintaining the operational readiness of complex defense systems like the Sniper pod. This includes scheduled maintenance, repairs, component replacements, and software updates. Effective sustainment ensures the system performs reliably under demanding operational conditions, minimizing downtime and maximizing its contribution to mission success throughout its lifecycle.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,083,981
Exercised Options: $33,083,981
Current Obligation: $33,083,981
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA854018D0001
IDV Type: IDC
Timeline
Start Date: 2017-12-21
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2021-07-28
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