Lockheed Martin awarded $26.5M for advanced targeting pod sustainment and upgrades by the Air Force

Contract Overview

Contract Amount: $26,453,780 ($26.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-11-21

End Date: 2020-03-31

Contract Duration: 496 days

Daily Burn Rate: $53.3K/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 $26.5 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. Contract focuses on sustainment, upgrades, and development for the AN/AAQ-33 Sniper targeting pod. 2. Sole-source award to Lockheed Martin Corporation raises questions about competition and potential cost efficiencies. 3. The contract duration of 496 days suggests a focused effort on specific sustainment and upgrade tasks. 4. Performance period spans from late 2018 to early 2020, indicating a completed project. 5. The contract falls under the 'Other Electronic and Precision Equipment Repair and Maintenance' NAICS code. 6. The award value of approximately $26.5 million is a significant investment in advanced targeting technology.

Value Assessment

Rating: fair

Benchmarking the value for this sole-source contract is challenging without comparable competitive bids. The fixed-price nature provides some cost certainty for the government. However, the lack of competition means the government did not benefit from potential price reductions that could arise from a competitive bidding process. Further analysis would require understanding the specific scope of work and comparing labor rates and material costs to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Lockheed Martin Corporation. The justification for a sole-source award is not provided in the data, but typically it would be due to the proprietary nature of the technology, the need for specialized expertise, or the existence of only one responsible source. The lack of competition limits the government's ability to explore alternative solutions or achieve lower prices through bidding.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the price reflects the lowest possible cost for the required goods and services.

Public Impact

The U.S. Air Force benefits from the continued operational readiness and enhanced capabilities of its advanced targeting pods. Services delivered include sustainment, upgrades, and development for the AN/AAQ-33 Sniper system. The geographic impact is primarily within the United States, supporting Air Force operations and maintenance facilities. Workforce implications include specialized technical roles for engineers, technicians, and support staff at Lockheed Martin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may reduce incentives for contractor innovation and efficiency.
Dependence on a single contractor for sustainment and upgrades can create long-term risks.

Positive Signals

Contract ensures continued availability and modernization of critical targeting technology for the Air Force.
Firm fixed-price contract provides cost predictability for the government.
Focus on sustainment and upgrades indicates a commitment to maintaining and improving existing capabilities.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on electronic warfare and targeting systems. The market for advanced targeting pods is highly specialized, with a limited number of prime contractors capable of developing and sustaining such complex systems. Spending in this area is driven by the need for superior situational awareness and precision strike capabilities for military aircraft. Comparable spending benchmarks would involve other sustainment and upgrade contracts for similar defense avionics systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting opportunities for small businesses. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Lockheed Martin actively engages small businesses for specific components or services. Further investigation into subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods and services within the agreed-upon price. Transparency is limited due to the sole-source nature and the proprietary aspects of defense technology. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

AN/AAQ-33 Sniper Advanced Targeting Pod
Air Force Avionics Modernization Programs
Defense Procurement of Electronic Warfare Systems
Aerospace and Defense Sustainment Contracts

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Lack of detailed justification for sole-source award.
Limited public information on specific upgrade details and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 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 $26.5 million.

What is the period of performance?

Start: 2018-11-21. End: 2020-03-31.

What specific upgrades were included in this contract for the AN/AAQ-33 Sniper targeting pod?

The provided data does not detail the specific technical upgrades included in this contract. However, 'upgrades and development' for advanced targeting pods typically encompass enhancements to sensor resolution, improved target tracking algorithms, expanded data links, reduced size, weight, and power (SWaP) requirements, and integration of new functionalities such as counter-stealth capabilities or expanded spectral sensing. The AN/AAQ-33 Sniper is known for its high-resolution imagery and precision targeting capabilities, and upgrades would aim to maintain its technological edge against evolving threats and operational requirements.

What is the justification for this contract being awarded on a sole-source basis?

The justification for this sole-source award is not explicitly stated in the provided data. However, sole-source awards in the defense sector, particularly for complex systems like advanced targeting pods, are often justified under specific circumstances outlined in federal acquisition regulations. These can include situations where only one responsible source is available, the need for compatibility with existing systems, the proprietary nature of the technology, or urgent and compelling requirements where competition is not feasible. For the AN/AAQ-33 Sniper, Lockheed Martin is the original developer and manufacturer, suggesting a reliance on their unique expertise and intellectual property for sustainment and upgrades.

How does the $26.5 million award compare to historical spending on the AN/AAQ-33 Sniper program?

The provided data only includes a single award of $26.5 million for a specific period (2018-2020). To compare this to historical spending, one would need access to a broader dataset of all contracts awarded for the AN/AAQ-33 Sniper program over its lifecycle. This would include initial procurement, subsequent sustainment contracts, and other upgrade efforts. Without that broader context, it's difficult to determine if $26.5 million represents a significant increase, decrease, or typical level of spending for sustainment and development activities during that timeframe. Analysis of total contract obligations over several years would be necessary for a meaningful comparison.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on sustainment and upgrades of targeting pods, typical KPIs would likely include metrics related to system availability and reliability (e.g., Mean Time Between Failures - MTBF), turnaround time for repairs and upgrades, successful completion of upgrade installations, adherence to delivery schedules, and performance of the upgraded systems against defined technical specifications. Contractor performance evaluations (e.g., CPARS) would likely incorporate these KPIs to assess Lockheed Martin's performance.

What is the potential impact of this contract on the competitive landscape for advanced targeting pods?

As a sole-source award, this specific contract does not directly impact the competitive landscape by introducing new competitors or fostering direct competition. Instead, it reinforces Lockheed Martin's dominant position as the sole provider for sustainment and upgrades of the AN/AAQ-33 Sniper system. The lack of competition in this instance may discourage potential new entrants or existing competitors from investing in developing alternative solutions or challenging Lockheed Martin's position, particularly if the contract includes options or follow-on work. Future procurements or the development of next-generation systems could potentially open up competition.

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

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: $26,453,780

Exercised Options: $26,453,780

Current Obligation: $26,453,780

Subaward Activity

Number of Subawards: 247

Total Subaward Amount: $27,391,072

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA854018D0001

IDV Type: IDC

Timeline