DoD Awards $862M IDIQ for Sniper Pods to Lockheed Martin, Limited Competition
Contract Overview
Contract Amount: $8,623,335 ($8.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2026-01-31
Contract Duration: 640 days
Daily Burn Rate: $13.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS SNIPER, IRST, LANTIRN DOD PRODUCTION IDIQ
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $8.6 million to LOCKHEED MARTIN CORPORATION for work described as: FMS SNIPER, IRST, LANTIRN DOD PRODUCTION IDIQ Key points: 1. Significant contract value for advanced targeting systems. 2. Sole reliance on Lockheed Martin raises competition concerns. 3. Potential for cost overruns due to limited competition. 4. Impacts Air Force's precision strike capabilities.
Value Assessment
Rating: questionable
The contract value is substantial, but without clear benchmarks for similar advanced targeting pods, assessing value for money is difficult. The lack of competition suggests potential for higher pricing than a competitive environment might yield.
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 potentially leads to higher costs for the government compared to a fully competed scenario.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive bidding, impacting the overall efficiency of defense spending.
Public Impact
Enhances Air Force's combat effectiveness with advanced targeting technology. Supports critical defense infrastructure and national security objectives. Potential for follow-on contracts and sustainment services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for price escalation
Positive Signals
- Critical defense capability
- Long-term production potential
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on advanced sensor and targeting systems. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the nature of the prime contractor and the specialized technology, small business participation is likely limited to subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and performance. Robust auditing and justification for the lack of competition are essential.
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 award limits competitive pricing.
- Potential for cost overruns without competition.
- Dependency on a single supplier for critical technology.
- Lack of transparency in price discovery.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.6 million to LOCKHEED MARTIN CORPORATION. FMS SNIPER, IRST, LANTIRN DOD 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 $8.6 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-01-31.
What is the justification for awarding this significant contract on a sole-source basis, 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 a single supplier. The Department of Defense should provide detailed documentation supporting this determination. To ensure fair pricing, mechanisms like cost realism analyses, independent government cost estimates, and potentially price negotiation strategies should be employed, even in a sole-source environment.
How does the lack of competition impact the long-term sustainment costs and potential for future upgrades of these systems?
A sole-source award can lead to higher long-term sustainment and upgrade costs as the government remains dependent on the original manufacturer. Without competitive pressure, there's less incentive for the contractor to innovate or reduce costs for maintenance and future enhancements. This necessitates careful contract management and potentially negotiating favorable terms for future modifications and support.
What is the projected return on investment or operational benefit derived from this $862 million expenditure on targeting pods?
The operational benefit is expected to be a significant enhancement in the Air Force's precision strike capabilities, improving target identification, accuracy, and mission success rates in complex environments. Quantifying the ROI is challenging but can be framed in terms of reduced collateral damage, increased mission effectiveness, and potentially lower operational tempo due to faster target acquisition.
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: $8,623,335
Exercised Options: $8,623,335
Current Obligation: $8,623,335
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $80,240
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: 2024-05-01
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-29
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)