Air Force awards $24.6M for SNIPER targeting pod support, a sole-source contract to Lockheed Martin

Contract Overview

Contract Amount: $24,647,266 ($24.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2024-12-31

Contract Duration: 365 days

Daily Burn Rate: $67.5K/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 $24.6 million to LOCKHEED MARTIN CORPORATION for work described as: USAF SNIPER COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUPPORT AND SUSTAINMENT Key points: 1. The contract is a sole-source award, raising questions about potential price overruns and lack of competitive pressure. 2. Sustainment and support for advanced targeting pods are critical for Air Force operations, indicating a high-stakes requirement. 3. The firm-fixed-price contract type aims to control costs, but the absence of competition limits benchmarking. 4. This award represents a small fraction of the total defense budget, but is significant for the specific weapon system. 5. The contract duration of one year suggests a need for ongoing, potentially recurring, support services. 6. The geographic location in Florida may indicate a concentration of Air Force assets or maintenance facilities.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging due to the lack of competitive bids. While the firm-fixed-price structure provides some cost certainty, the absence of competition means there's no direct comparison to assess if the pricing is optimal or if taxpayers are receiving the best possible value. The total award amount of $24.6 million for one year of support for advanced targeting pods appears substantial, but without comparable contracts or market data, a definitive value-for-money assessment is difficult. Further analysis would require understanding the specific services rendered and historical pricing for similar support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin Corporation, was solicited. This approach is typically used when a unique product or service is required, or when there is a lack of adequate competition. The absence of multiple bidders means there was no opportunity for price discovery through a competitive bidding process, which could potentially lead to higher costs for the government compared to a competed contract. The justification for this sole-source award would need to be thoroughly reviewed to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to drive down prices, potentially resulting in higher expenditures for taxpayers. Without competitive pressure, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating aircraft equipped with SNIPER advanced targeting pods. The contract ensures the continued operational readiness and effectiveness of critical intelligence, surveillance, and reconnaissance (ISR) capabilities. Services delivered include maintenance, repair, and sustainment of sophisticated targeting systems, crucial for mission success. The geographic impact is primarily within Florida, where the contract is being performed, potentially supporting local technical expertise and jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Dependence on a single contractor for critical sustainment raises long-term supply chain risks.
Lack of transparency in the sole-source justification could mask inefficiencies or inflated pricing.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the awarded scope.
Lockheed Martin is an established provider of defense systems, suggesting technical expertise.
Sustainment of advanced targeting pods is essential for maintaining air superiority and mission effectiveness.

Sector Analysis

The defense electronics and avionics sector is characterized by high technological complexity and significant R&D investment. Contracts for advanced targeting pods and their sustainment are crucial for maintaining a technological edge in military operations. The market is often dominated by a few large prime contractors like Lockheed Martin, with specialized subcontractors supporting various components. Spending in this area is driven by evolving threats and the need for precision engagement capabilities. Comparable spending benchmarks are difficult to establish without detailed service breakdowns and competitive data, but sustainment of complex weapon systems typically represents a significant portion of their lifecycle cost.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Lockheed Martin, is a large defense corporation. While there may be subcontracting opportunities for small businesses within the scope of this award, the primary contract itself is not directly benefiting small businesses through a set-aside. The impact on the small business ecosystem would depend on the extent to which Lockheed Martin utilizes small business subcontractors for specialized services or components related to the SNIPER pod support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General (DoD IG) for potential fraud, waste, and abuse. Transparency is enhanced through contract databases like FPDS, though the specific details of sole-source justifications and performance metrics may not always be fully public. Accountability measures would include performance reviews and adherence to the firm-fixed-price terms.

Related Government Programs

Air Force Targeting Pod Programs
Defense Electronics Maintenance and Support
Lockheed Martin Defense Contracts
SNIPER Advanced Targeting System
Precision Guidance and Targeting Systems

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Contractor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 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 $24.6 million.

What is the period of performance?

Start: 2024-01-01. End: 2024-12-31.

What is the historical spending trend for SNIPER CATP support and sustainment by the Air Force?

Analyzing historical spending for SNIPER CATP support and sustainment requires access to detailed contract data over multiple fiscal years. Without specific historical data points for this particular contract vehicle or similar sole-source awards for the SNIPER system, it's difficult to establish a precise trend. However, the nature of advanced targeting pods suggests a consistent need for sustainment due to operational use and technological evolution. If this $24.6 million award is representative of annual spending, it indicates a significant, ongoing investment. Trends in defense spending often reflect modernization efforts and operational tempo; therefore, sustained or increasing investment in such critical systems is plausible, especially in periods of heightened geopolitical activity. A comprehensive trend analysis would involve aggregating data from all contracts related to SNIPER CATP sustainment over the past 5-10 years to identify patterns in award values, contract types, and contractor performance.

How does the pricing of this contract compare to similar targeting pod support contracts, if available?

Direct price comparison for this $24.6 million SNIPER CATP support and sustainment contract is challenging due to its sole-source nature and the specific technological capabilities of the SNIPER system. Without access to data on other competitively awarded contracts for similar advanced targeting pods (e.g., LITENING, ATFLIR) or previous competitive bids for SNIPER support, a robust benchmark is not feasible. Sole-source awards inherently lack the price discovery mechanism inherent in competitive bidding. To assess value, one would typically look at metrics like cost per flight hour, cost per maintenance action, or total cost of ownership relative to system utilization. In the absence of such comparative data, an assessment relies on the contractor's historical pricing, internal cost structures, and the justification provided for the sole-source award, which are not fully detailed here.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like this typically focus on ensuring the operational readiness and effectiveness of the SNIPER CATP. While specific KPIs are not detailed in the provided data, common metrics for sustainment contracts include: 1) Mean Time Between Failures (MTBF) for the targeting pods, indicating reliability. 2) Mean Time To Repair (MTTR), measuring the efficiency of maintenance actions. 3) On-Time Delivery of repaired or sustained components. 4) System Availability Rate, ensuring a sufficient percentage of pods are operational when needed. 5) Contractor Performance Assessment Reporting System (CPARS) ratings, which provide a qualitative assessment of the contractor's performance across various criteria. Adherence to the firm-fixed-price terms and delivery schedules would also be critical performance measures.

What is Lockheed Martin's track record with the SNIPER targeting pod system and similar contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience in developing, manufacturing, and supporting advanced avionics and targeting systems, including the SNIPER Advanced Targeting Pod (ATP). They have been a primary provider of such systems to the U.S. military and allied nations for many years. Their track record with the SNIPER system likely includes successful production, integration, and sustainment efforts. Performance on similar contracts for other advanced targeting pods or complex electronic systems would also be relevant. While specific performance metrics for this particular contract are not provided, Lockheed Martin's established position in the defense industry suggests a generally strong technical capability. However, as with any large contractor, past performance reviews (e.g., CPARS) would offer a more detailed insight into their reliability, quality, and responsiveness on specific contracts.

What is the potential risk associated with relying on a sole-source provider for critical targeting pod sustainment?

Relying on a sole-source provider like Lockheed Martin for SNIPER CATP sustainment presents several risks. Firstly, the lack of competition can lead to higher costs over time, as the government has limited leverage to negotiate prices. Secondly, it creates a dependency on a single supplier, which can be vulnerable to supply chain disruptions, production issues, or changes in the contractor's business strategy. If Lockheed Martin were to experience financial difficulties, cease production of certain parts, or prioritize other contracts, the Air Force's ability to maintain its targeting pods could be severely impacted. Furthermore, sole-source awards can sometimes indicate a lack of adequate market research or a failure to foster competition, potentially hindering innovation and the development of alternative solutions. This dependency necessitates robust contract management and close monitoring of the contractor's performance and financial stability.

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

Solicitation ID: FA854021R0011

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: $33,769,054

Exercised Options: $33,769,054

Current Obligation: $24,647,266

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $54,051

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