USAF awards $471.9M contract to Lockheed Martin for SNIPER, IRST, LANTIRN systems
Contract Overview
Contract Amount: $47,194,406 ($47.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-05-18
End Date: 2026-02-28
Contract Duration: 2,112 days
Daily Burn Rate: $22.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USAF/DOD SNIPER, IRST, LANTIRN PRODUCTION IDIQ CONTRACT
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $47.2 million to LOCKHEED MARTIN CORPORATION for work described as: USAF/DOD SNIPER, IRST, LANTIRN PRODUCTION IDIQ CONTRACT Key points: 1. This contract focuses on critical targeting and navigation systems for the Air Force. 2. Lockheed Martin is the sole provider for these specialized components. 3. The contract value is substantial, indicating significant program investment. 4. Potential risks include reliance on a single supplier and long-term sustainment costs.
Value Assessment
Rating: fair
The contract value of $471.9M over several years suggests a significant investment. Without comparable contracts for these specific, advanced systems, a precise pricing assessment is difficult. However, the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and competition, potentially leading to higher costs than if multiple vendors were involved.
Taxpayer Impact: Taxpayer funds are committed to a single supplier for advanced defense systems, with limited opportunity for competitive pricing.
Public Impact
Enhances critical targeting and situational awareness capabilities for Air Force platforms. Supports ongoing modernization and operational readiness of key aircraft. Ensures continued availability of advanced sensor and navigation technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration may not reflect evolving technology needs.
- Lack of small business participation noted.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Award supports critical defense capabilities.
- Long-term production ensures system availability.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced sensor and navigation systems. Spending in this area is driven by national security needs and technological advancements, with significant investment in maintaining and upgrading existing platforms.
Small Business Impact
The data indicates no specific set-aside for small businesses (ss: false, sb: false). This suggests that the prime contractor, Lockheed Martin, is likely performing the majority of the work, with limited direct subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The Department of Defense's contracting process, including sole-source awards, is subject to oversight by various bodies, including the Government Accountability Office (GAO) and congressional committees. Transparency and justification for sole-source procurements are key accountability measures.
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 procurement limits competitive pricing.
- Potential for cost overruns in long-term sustainment.
- Lack of small business participation.
- Dependency on a single supplier for critical components.
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 $47.2 million to LOCKHEED MARTIN CORPORATION. USAF/DOD SNIPER, IRST, LANTIRN PRODUCTION IDIQ CONTRACT
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 $47.2 million.
What is the period of performance?
Start: 2020-05-18. End: 2026-02-28.
What is the projected lifecycle cost of these systems, including sustainment and upgrades, beyond the current contract period?
The current contract focuses on production and delivery through February 2026. Lifecycle cost projections are not provided in this data. However, given the advanced nature of these systems, significant sustainment, maintenance, and potential upgrade costs are anticipated over their operational lifespan, requiring separate future funding and oversight.
What specific technological advancements or unique capabilities justify the sole-source award to Lockheed Martin?
Sole-source awards are typically justified when a specific technology is proprietary, requires unique expertise, or is the only source capable of meeting stringent performance requirements. For systems like SNIPER, IRST, and LANTIRN, Lockheed Martin likely possesses unique intellectual property, manufacturing processes, or established integration expertise critical to the platforms, making competition infeasible.
How does the unit cost of these systems compare to similar, albeit potentially less advanced, targeting and navigation systems available on the market?
Direct comparison is challenging due to the specialized and advanced nature of SNIPER, IRST, and LANTIRN systems. These are likely high-performance, integrated solutions tailored for specific military applications. While less advanced systems might have lower unit costs, they may not meet the required performance, interoperability, or mission effectiveness standards for the platforms they equip.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA854019R0004
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: $47,194,406
Exercised Options: $47,194,406
Current Obligation: $47,194,406
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $3,047,084
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854020D0001
IDV Type: IDC
Timeline
Start Date: 2020-05-18
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-04-03
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)