DoD Awards $985M IDIQ for Sniper, LANTIRN, and IRST Systems to Lockheed Martin

Contract Overview

Contract Amount: $9,857,816 ($9.9M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-04-14

End Date: 2025-04-13

Contract Duration: 730 days

Daily Burn Rate: $13.5K/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 $9.9 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 used in search, detection, and targeting. 2. Lockheed Martin is the sole awardee, indicating a lack of competition for this specific contract. 3. The contract's value and duration suggest a significant, long-term investment in these systems. 4. The absence of small business participation is noted.

Value Assessment

Rating: fair

The contract value of $985,781,600 over two years is substantial. Benchmarking against similar sole-source IDIQ contracts for advanced defense systems is difficult without more specific cost breakdowns, but the price appears to be within a typical range for such specialized equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the specialized nature of the Sniper, LANTIRN, and IRST systems and Lockheed Martin's established role as the manufacturer. This lack of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Taxpayers may bear a higher cost due to the sole-source nature of this award, as competitive bidding processes are designed to drive down prices.

Public Impact

Enhances U.S. Air Force's aerial surveillance and targeting capabilities. Supports ongoing military operations and national security objectives. Potential for technology upgrades and sustainment over the contract period. Ensures continued availability of critical defense systems for aircrews.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
No small business participation.
Long-term contract duration may not reflect current market efficiencies.

Positive Signals

Award to incumbent provider ensures continuity of critical systems.
Firm Fixed Price contract provides cost certainty.
Supports U.S. Air Force operational readiness.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is typically high due to the advanced technology and critical nature of defense systems, with significant investments often made in sole-source or limited-competition contracts for specialized equipment.

Small Business Impact

This contract does not appear to include any provisions for small business participation. Given the specialized nature of the systems and the sole-source award to a large corporation, opportunities for small businesses in this specific procurement are likely minimal.

Oversight & Accountability

The Department of the Air Force is the awarding agency. Oversight will focus on contract performance, delivery schedules, and adherence to the firm fixed price terms. The sole-source nature warrants scrutiny to ensure fair pricing and necessity.

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 competition may lead to inflated prices.
No small business participation.
Potential for vendor lock-in due to specialized systems.
Contract duration may not align with rapid technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 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 $9.9 million.

What is the period of performance?

Start: 2023-04-14. End: 2025-04-13.

What is the justification for the sole-source award, and has an alternatives analysis been conducted to ensure this is the most cost-effective approach?

The justification for a sole-source award typically stems from the unique capabilities of the system, proprietary technology, or the incumbent's established expertise and infrastructure. An alternatives analysis is crucial to demonstrate that no other source can meet the government's needs or that competition would be impracticable or not in the government's best interest. Without this analysis, it's difficult to ascertain if taxpayers are receiving the best value.

How does the per-unit cost of these systems compare to historical data or similar systems procured competitively?

Benchmarking the per-unit cost is challenging without access to detailed pricing information and historical data for these specific systems. Given the sole-source nature, direct comparison to competitively procured systems is difficult. A thorough review would involve analyzing cost trends, inflation adjustments, and any documented cost efficiencies or inefficiencies over the contract's lifespan to assess value for money.

What is the long-term strategy for sustainment and potential upgrades of these critical defense systems, and how does this IDIQ fit into that plan?

This IDIQ provides a framework for the production and potential sustainment of Sniper, LANTIRN, and IRST systems through April 2025. The long-term strategy likely involves ensuring operational readiness and incorporating necessary technological advancements. The effectiveness of this IDIQ hinges on its ability to support these evolving needs efficiently and affordably, potentially paving the way for future contracts that address upgrades or replacements.

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: $9,857,816

Exercised Options: $9,857,816

Current Obligation: $9,857,816

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $286,531

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