DoD Awards $36.4M for Sniper Pod Production to Lockheed Martin for Kuwait
Contract Overview
Contract Amount: $36,454,157 ($36.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-21
End Date: 2024-12-31
Contract Duration: 2,232 days
Daily Burn Rate: $16.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SNIPER POD PRODUCTION FOR THE COUNTRY OF KUWAIT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $36.5 million to LOCKHEED MARTIN CORPORATION for work described as: SNIPER POD PRODUCTION FOR THE COUNTRY OF KUWAIT Key points: 1. High value contract for specialized defense equipment. 2. Sole-source award limits competitive pricing. 3. Long duration suggests sustained operational need. 4. Focus on advanced targeting systems indicates technological investment.
Value Assessment
Rating: fair
The contract value of $36.4M is for a production run of Sniper Pods. Without specific unit counts or detailed cost breakdowns, a direct comparison to similar contracts is difficult. However, the firm-fixed-price nature suggests an attempt to control costs.
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 potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers due to the lack of competitive pressure to reduce prices.
Public Impact
Enhances Kuwait's air force capabilities with advanced targeting technology. Supports U.S. foreign military sales and defense industrial base. Long-term contract ensures availability of critical equipment through 2024.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost data hinders thorough value assessment.
- Long contract duration increases exposure to potential cost overruns.
Positive Signals
- Provides critical defense capabilities to an allied nation.
- Firm-fixed-price contract aims to control costs.
- Long-term award ensures sustained operational support.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced targeting systems. Spending in this area is driven by national security needs and technological advancements, with significant government investment.
Small Business Impact
The prime contractor is Lockheed Martin Corporation, a large defense manufacturer. There is no information provided regarding subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would typically involve contract management, performance monitoring, and financial accountability to ensure delivery and adherence to terms.
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
- Lack of competition
- Limited cost transparency
- Long contract duration
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 $36.5 million to LOCKHEED MARTIN CORPORATION. SNIPER POD PRODUCTION FOR THE COUNTRY OF KUWAIT
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 $36.5 million.
What is the period of performance?
Start: 2018-11-21. End: 2024-12-31.
What is the specific unit cost of a Sniper Pod under this contract, and how does it compare to industry benchmarks for similar systems?
The provided data does not include the number of Sniper Pods being produced or the total cost per unit. Therefore, a precise unit cost cannot be calculated or benchmarked against industry standards. Further analysis would require details on the quantity awarded and the total contract value breakdown.
What are the justifications for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not detailed in the provided data. Typically, such awards are made when only one source can fulfill the requirement due to unique capabilities or urgent needs. Steps to ensure fair and reasonable pricing in sole-source contracts often involve detailed cost analysis and negotiation by the contracting agency.
How does the integration of these Sniper Pods by Kuwait's Air Force align with broader U.S. foreign policy and security objectives in the region?
The provision of advanced targeting systems like the Sniper Pod to Kuwait enhances its air force's operational effectiveness, contributing to regional stability and counter-terrorism efforts. This aligns with U.S. foreign policy goals of strengthening allied defense capabilities and promoting interoperability within coalition operations.
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: $36,454,157
Exercised Options: $36,454,157
Current Obligation: $36,454,157
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $1,837,085
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: 2018-11-21
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2024-12-18
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