DoD awards $40.25M for Sniper Pods to Lockheed Martin, facing limited competition
Contract Overview
Contract Amount: $40,251,233 ($40.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-08-28
End Date: 2019-12-10
Contract Duration: 469 days
Daily Burn Rate: $85.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SNIPER PODS FOR THE COUNTRY OF TAIWAN
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $40.3 million to LOCKHEED MARTIN CORPORATION for work described as: SNIPER PODS FOR THE COUNTRY OF TAIWAN Key points: 1. High value contract for critical defense equipment. 2. Sole-source award limits competitive pricing. 3. Potential for cost overruns due to lack of competition. 4. Sector: Defense, specifically targeting systems.
Value Assessment
Rating: questionable
The contract value of $40.25M for Sniper Pods is significant. Without competitive bids, it's difficult to assess if this price is optimal compared to similar systems or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely results in a higher price than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Ensures Taiwan's defense capabilities with advanced targeting systems. Potential for increased defense spending without competitive pressure. Highlights reliance on a single contractor for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
Positive Signals
- Provides critical defense technology
- Supports international security partnerships
Sector Analysis
This contract falls within the Defense sector, specifically for targeting and navigation systems. Spending in this area is often driven by national security needs and technological advancements.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this contract award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Oversight is crucial to ensure delivery and performance, especially in sole-source situations.
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
- Lack of competition
- Potential for price inflation
- Limited transparency on justification
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 $40.3 million to LOCKHEED MARTIN CORPORATION. SNIPER PODS FOR THE COUNTRY OF TAIWAN
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 $40.3 million.
What is the period of performance?
Start: 2018-08-28. End: 2019-12-10.
What is the justification for awarding this contract as sole-source?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Further investigation into the specific reasons cited by the Department of Defense is needed to fully understand the rationale and its impact on competition.
What is the long-term cost implication of sole-source contracts for advanced defense systems?
Sole-source contracts can lead to higher long-term costs due to the absence of competitive pressure to reduce prices. Contractors may face less incentive to innovate or become more efficient. This can result in sustained higher spending for taxpayers over the lifecycle of the system.
How does the performance of Sniper Pods compare to similar systems, and was this considered?
Without competitive bidding, it's challenging to ascertain if the performance of these Sniper Pods was benchmarked against other available systems. The sole-source nature suggests the decision was based on specific, potentially unique, capabilities of the Lockheed Martin offering, rather than a comparative evaluation of multiple options.
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 (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: $40,251,233
Exercised Options: $40,251,233
Current Obligation: $40,251,233
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $4,445,677
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854015D0001
IDV Type: IDC
Timeline
Start Date: 2018-08-28
Current End Date: 2019-12-10
Potential End Date: 2019-12-10 00:00:00
Last Modified: 2021-02-19
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)