DoD Awards $309M IDIQ for Sniper, LANTIRN, and IRST Systems to Lockheed Martin
Contract Overview
Contract Amount: $30,946,428 ($30.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-23
End Date: 2023-07-31
Contract Duration: 676 days
Daily Burn Rate: $45.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FOREIGN MILITARY SALES (FMS) AND DEPARTMENT OF DEFENSE (DOD) SNIPER, LANTIRN, AND INFRARED SEARCH AND TRACK (IRST) SYSTEMS PRODUCTION IDIQ
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $30.9 million to LOCKHEED MARTIN CORPORATION for work described as: FOREIGN MILITARY SALES (FMS) AND DEPARTMENT OF DEFENSE (DOD) SNIPER, LANTIRN, AND INFRARED SEARCH AND TRACK (IRST) SYSTEMS PRODUCTION IDIQ Key points: 1. This contract is for critical defense systems including Sniper, LANTIRN, and IRST. 2. Lockheed Martin is the sole awardee, indicating a lack of competition for this specific IDIQ. 3. The contract's firm-fixed-price nature aims to control costs, but the limited competition raises potential value concerns. 4. The sector is dominated by large defense contractors, with limited opportunities for smaller players in this specific award.
Value Assessment
Rating: fair
The contract value of $309M over approximately two years is substantial. Without specific benchmarks for these advanced systems, it's difficult to definitively assess pricing, but the lack of competition suggests potential for inflated 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 significantly limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition for these essential defense systems means taxpayers may be paying a premium for the technology and production.
Public Impact
Ensures continued availability of advanced targeting and surveillance systems for U.S. Air Force aircraft. Supports critical military operations requiring precision targeting and situational awareness. Maintains U.S. technological advantage in aerial warfare capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Essential defense systems
- Firm-fixed-price contract
Sector Analysis
This award falls within the aerospace and defense manufacturing sector, specifically focusing on advanced avionics and targeting systems. Spending in this area is typically high due to the specialized nature and critical importance of the technology.
Small Business Impact
This contract was awarded directly to Lockheed Martin, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this specific award notice.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. The Department of Defense should actively monitor contract execution and explore competitive strategies for future procurements.
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
- Lack of competitive bidding
- Potential for inflated pricing
- Dependence on a single supplier
- Limited transparency in cost 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 $30.9 million to LOCKHEED MARTIN CORPORATION. FOREIGN MILITARY SALES (FMS) AND DEPARTMENT OF DEFENSE (DOD) SNIPER, LANTIRN, AND INFRARED SEARCH AND TRACK (IRST) SYSTEMS PRODUCTION IDIQ
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 $30.9 million.
What is the period of performance?
Start: 2021-09-23. End: 2023-07-31.
What is the justification for awarding this contract sole-source to Lockheed Martin, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. The Department of Defense should have documented this justification. To ensure fair pricing, they would likely rely on historical pricing data, independent cost estimates, and robust negotiation strategies, though competition is the most effective price discovery mechanism.
What are the long-term risks associated with relying on a single supplier for these critical defense systems?
The primary long-term risk is vendor lock-in, which can lead to escalating costs and reduced innovation. It also creates a vulnerability if the sole supplier faces production issues, financial instability, or decides to discontinue the product line. Dependence on one source can also stifle competition and the development of alternative, potentially superior, technologies.
How does the firm-fixed-price contract structure mitigate risks for the government in this sole-source scenario?
A firm-fixed-price (FFP) contract shifts most of the cost risk to the contractor, meaning the government pays a set price regardless of the contractor's actual costs. In a sole-source situation, while it provides cost certainty for the government, the initial negotiated price is crucial. If that price was not optimized due to lack of competition, the FFP structure still locks the government into that potentially higher cost.
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
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: $30,946,428
Exercised Options: $30,946,428
Current Obligation: $30,946,428
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $665,847
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: 2021-09-23
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2023-07-07
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