USAF Awards $26M to Lockheed Martin for SNIPER CATP Support, Lacking Competition
Contract Overview
Contract Amount: $26,076,457 ($26.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2026-06-30
Contract Duration: 545 days
Daily Burn Rate: $47.8K/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: WARNER ROBINS, HOUSTON County, GEORGIA, 31098
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $26.1 million to LOCKHEED MARTIN CORPORATION for work described as: USAF SNIPER COMPREHENSIVE ADVANCED TARGETING POD (CATP) SUPPORT AND SUSTAINMENT Key points: 1. Significant contract value for advanced targeting pod sustainment. 2. Sole provider Lockheed Martin dominates the advanced targeting pod market. 3. Risk of higher costs and limited innovation due to lack of competition. 4. High-tech defense sector with critical operational importance.
Value Assessment
Rating: questionable
The $26M award for SNIPER CATP support and sustainment is a substantial investment. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous contracts for similar advanced targeting systems.
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 lack of competition limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pressure, potentially funding higher profit margins for the sole provider.
Public Impact
Ensures continued operational readiness for critical Air Force targeting capabilities. Supports advanced military technology essential for intelligence, surveillance, and reconnaissance. Potential for increased costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited innovation incentives
Positive Signals
- Ensures critical system sustainment
- Maintains operational readiness
- Leverages established provider expertise
Sector Analysis
This contract falls within the defense electronics and maintenance sector, specifically supporting advanced avionics and targeting systems. Spending benchmarks for similar sustainment contracts are often high due to specialized technology and limited providers.
Small Business Impact
The data indicates no specific provisions for small business participation in this sole-source award. This contract is likely to be performed entirely by the prime contractor, Lockheed Martin, with limited subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Air Force must diligently monitor contract execution and costs to mitigate risks associated with the lack of competition.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price negotiation.
- Potential for cost creep without competition.
- Dependency on a single provider for critical technology.
- Lack of incentive for innovation from competitors.
- Risk of performance issues impacting mission readiness.
Tags
electronic-and-precision-equipment-repai, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.1 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 $26.1 million.
What is the period of performance?
Start: 2025-01-01. End: 2026-06-30.
What is the justification for the sole-source award, and has the government explored options for future competition?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single vendor. The government should have a strategy to foster competition in the future, perhaps through technology insertion or by developing alternative systems, to avoid perpetual sole-source reliance and ensure better value.
How does the cost of this contract compare to industry benchmarks for similar advanced targeting pod sustainment services?
Without competitive bids, a direct cost comparison is challenging. However, the government should benchmark this contract against historical data for similar systems and, if possible, against publicly available pricing for comparable commercial or international systems. Any significant deviation from benchmarks warrants further investigation into cost drivers.
What are the potential risks to operational effectiveness if Lockheed Martin's support is interrupted or suboptimal?
An interruption or suboptimal performance in the sustainment of the SNIPER CATP could severely degrade the Air Force's ability to conduct precision strikes and gather intelligence. This could lead to mission failures, increased risk to aircrews, and a reduced overall combat capability, highlighting the critical nature of this support contract.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $26,076,457
Exercised Options: $26,076,457
Current Obligation: $26,076,457
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
Start Date: 2025-01-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-09-26
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