Air Force awards $25.1M for SNIPER targeting pod support, with Lockheed Martin as sole provider

Contract Overview

Contract Amount: $25,124,082 ($25.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-01-01

End Date: 2023-12-31

Contract Duration: 364 days

Daily Burn Rate: $69.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: USAF SNIPER COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUPPORT AND SUSTAINMENT

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to LOCKHEED MARTIN CORPORATION for work described as: USAF SNIPER COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUPPORT AND SUSTAINMENT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on sustainment and support for advanced targeting pods. 3. High value contract for specialized defense equipment maintenance. 4. Performance period covers one full fiscal year. 5. Geographic concentration in Florida for contract performance. 6. No small business set-aside noted for this award.

Value Assessment

Rating: fair

The contract value of $25.1 million for sustainment and support of targeting pods appears substantial. Without direct comparable contract data for the SNIPER CATP, it is difficult to benchmark the value for money definitively. However, given the specialized nature of advanced targeting systems and the sole-source award to the incumbent, pricing may reflect limited negotiation leverage. Further analysis would require benchmarking against similar advanced avionics support contracts or historical pricing for this specific system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Lockheed Martin Corporation. This indicates that the Air Force determined that only Lockheed Martin could provide the necessary support and sustainment for the SNIPER Advanced Targeting Pod. The lack of competition means that pricing was not subjected to market forces, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Sole-source awards reduce opportunities for competitive bidding, which typically drives down prices. Taxpayers may be paying a premium due to the absence of market-driven cost discovery.

Public Impact

The U.S. Air Force benefits from continued operational readiness of its SNIPER targeting pods. Services include maintenance, repair, and logistical support for critical defense equipment. Contract performance is concentrated in Florida, potentially impacting the local defense industrial base. Ensures aircrews have reliable and effective targeting capabilities for missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs.
Lack of transparency in pricing due to no competitive bidding process.
Reliance on a single contractor for critical sustainment could pose long-term supply chain risks.

Positive Signals

Ensures continuity of support for a vital defense system.
Leverages incumbent contractor's specialized knowledge and existing infrastructure.
Supports readiness of Air Force combat aircraft.

Sector Analysis

The defense electronics and avionics sector is characterized by high technological complexity and significant R&D investment. Contracts for the sustainment of advanced targeting pods fall within this specialized niche. The market is often dominated by a few large prime contractors with deep expertise and established relationships with the military. Spending in this area is critical for maintaining technological superiority and operational effectiveness of air assets.

Small Business Impact

This contract was not competed and did not include a small business set-aside. Consequently, there are no direct subcontracting opportunities for small businesses mandated by this specific award. The prime contractor, Lockheed Martin, may engage small businesses through its broader supply chain, but this is not a direct requirement of this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The contract is a firm-fixed-price delivery order, which provides cost certainty. Transparency is limited due to the sole-source nature. Inspector General investigations could be initiated if performance issues or allegations of impropriety arise.

Related Government Programs

Airborne Weapons Systems
Avionics and Electronic Systems
Defense Logistics and Sustainment
Precision Guided Munitions Support

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns
Dependency on single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to LOCKHEED MARTIN CORPORATION. USAF SNIPER COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUPPORT AND SUSTAINMENT

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 $25.1 million.

What is the period of performance?

Start: 2023-01-01. End: 2023-12-31.

What is the track record of Lockheed Martin in providing sustainment services for advanced targeting pods?

Lockheed Martin Corporation is a major defense contractor with extensive experience in developing, manufacturing, and sustaining advanced targeting systems, including the SNIPER Advanced Targeting Pod (ATP). They have a long history of supporting U.S. military platforms and have been the primary provider for the SNIPER ATP since its inception. Their track record includes delivering and maintaining these complex systems for various Air Force and international programs. While specific performance metrics for this sustainment contract are not publicly detailed, Lockheed Martin's established position and expertise in this domain suggest a high level of technical capability. However, the sole-source nature of this award means that performance and pricing are not subject to competitive pressures, which can sometimes incentivize contractors to maintain high standards.

How does the $25.1 million contract value compare to similar sustainment contracts for advanced targeting systems?

Benchmarking the $25.1 million value for the SNIPER CATP support and sustainment is challenging without access to specific, comparable contract data. Advanced targeting pods are highly sophisticated and costly systems, and their sustainment involves specialized technical expertise, parts, and logistics. Contracts for similar systems, such as other electro-optical/infrared (EO/IR) targeting pods or advanced sensor suites, can range from tens to hundreds of millions of dollars over their lifecycle, depending on the system's complexity, the number of units supported, and the scope of services (e.g., depot-level maintenance, field support, software updates). Given this is a sole-source award for one year of support, the $25.1 million figure should be evaluated in the context of the specific support requirements and the lack of competitive pricing.

What are the primary risks associated with a sole-source award for critical defense equipment sustainment?

The primary risks associated with a sole-source award for critical defense equipment sustainment, such as the SNIPER CATP, include potential for higher costs due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and increased dependency on a single supplier. This dependency can create supply chain vulnerabilities if the sole provider faces production issues, financial instability, or decides to exit the market. Furthermore, without competitive pressure, there may be less transparency in pricing and a reduced ability for the government to negotiate favorable terms. The government's bargaining power is significantly diminished in a sole-source scenario, potentially leading to less value for taxpayer money over the long term.

What is the expected program effectiveness or outcome of this contract?

The expected outcome of this contract is the continued operational readiness and effectiveness of the U.S. Air Force's SNIPER Advanced Targeting Pod (CATP) fleet. By ensuring timely and proficient support and sustainment services, the contract aims to minimize downtime, maintain system performance at optimal levels, and ensure the reliability of these critical components. Effective targeting pods are essential for aircrews to accurately identify, track, and engage targets in various operational environments, contributing directly to mission success and force protection. The contract's success will be measured by the availability and performance of the SNIPER pods, enabling the Air Force to maintain its combat capabilities.

What are the historical spending patterns for SNIPER targeting pod support and sustainment?

Historical spending data for SNIPER targeting pod support and sustainment prior to this $25.1 million award would provide valuable context. Without specific historical figures, it's difficult to establish a trend. However, advanced military hardware like targeting pods typically requires ongoing sustainment investments throughout their operational life. These costs can fluctuate based on system upgrades, operational tempo, and the availability of spare parts. If this $25.1 million represents an annual expenditure, comparing it to previous years' sustainment costs for the SNIPER system would reveal whether spending is increasing, decreasing, or remaining stable. Understanding these patterns is crucial for long-term budget planning and assessing the overall cost-effectiveness of the program.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › 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, 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: $29,164,640

Exercised Options: $29,164,640

Current Obligation: $25,124,082

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $5,851,332

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA854023D0001

IDV Type: IDC

Timeline