DoD Awards $39.7M Contract to Lockheed Martin for SNIPER ATP Production for Bahrain
Contract Overview
Contract Amount: $39,690,126 ($39.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-08-30
End Date: 2024-09-30
Contract Duration: 2,223 days
Daily Burn Rate: $17.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SNIPER ATP PRODUCTION CONTRACT FOR THE COUNTRY OF BAHRAIN
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $39.7 million to LOCKHEED MARTIN CORPORATION for work described as: SNIPER ATP PRODUCTION CONTRACT FOR THE COUNTRY OF BAHRAIN Key points: 1. This contract is for the production of SNIPER ATP targeting pods for the country of Bahrain. 2. Lockheed Martin Corporation is the sole awardee, indicating a lack of competition for this specific contract. 3. The contract's value is $39.7 million, with a long performance period extending to September 2024. 4. The sector is primarily defense manufacturing, specifically targeting and navigation systems.
Value Assessment
Rating: fair
Pricing is based on a firm-fixed-price contract, which typically offers cost certainty. However, without competitive bids, it's difficult to assess if the price is optimal compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was considered. This limits price discovery and potentially leads to higher costs than if competition were present.
Taxpayer Impact: Taxpayer funds are being used for this foreign military sale, and the lack of competition raises concerns about the efficient use of these funds.
Public Impact
Enhances the aerial capabilities of the Bahraini Air Force. Supports U.S. foreign military sales objectives and strengthens alliances. Contributes to the defense industrial base and Lockheed Martin's revenue.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long performance period could introduce cost escalation risks if not managed.
- Lack of transparency on specific cost breakdowns for the pods.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Supports a key U.S. defense contractor.
- Addresses a specific foreign military sales requirement.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of advanced targeting systems. Spending in this area is driven by national security needs and international partnerships, with major defense contractors often dominating specialized production.
Small Business Impact
This contract was awarded directly 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 the awarding agency. Oversight would typically involve contract management to ensure delivery and quality standards are met, especially given the sole-source nature and foreign military sales context.
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
- Potential for higher costs due to lack of competition
- Long contract duration
- Foreign military sale complexities
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 $39.7 million to LOCKHEED MARTIN CORPORATION. SNIPER ATP PRODUCTION CONTRACT FOR THE COUNTRY OF BAHRAIN
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 $39.7 million.
What is the period of performance?
Start: 2018-08-30. End: 2024-09-30.
What is the justification for the sole-source award, and has a market research report been conducted to confirm the lack of viable alternatives?
The justification for a sole-source award is crucial for understanding why competition was not pursued. Typically, this involves demonstrating that only one responsible source can provide the required supplies or services. A thorough market research report should have been conducted to validate this claim, exploring potential alternatives and justifying the decision to proceed without competition to ensure the government's best interests are met.
How does the unit cost of these SNIPER ATP pods compare to similar systems procured competitively by the U.S. or allied nations?
Benchmarking the unit cost against competitively procured systems is essential for assessing value. Without this comparison, it's difficult to determine if the $39.7 million award represents a fair and reasonable price. Analyzing data from similar contracts, especially those awarded through competitive bidding processes, would provide critical insights into potential cost savings or overspending.
What are the specific performance metrics and delivery schedules for this contract, and what mechanisms are in place to ensure timely and effective delivery to Bahrain?
Ensuring timely and effective delivery involves clearly defined performance metrics and robust oversight. The contract's duration of 22 months suggests a structured delivery schedule. Mechanisms for monitoring progress, addressing potential delays, and ensuring the SNIPER ATP pods meet all specified performance requirements are vital for the success of this foreign military sale and the strengthening of the alliance.
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: $39,690,126
Exercised Options: $39,690,126
Current Obligation: $39,690,126
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $15,055,224
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: 2018-08-30
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2024-03-15
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)