DoD's $17.7M SNIPER CLS Sustainment Order Awarded to Lockheed Martin Amidst Limited Competition
Contract Overview
Contract Amount: $17,731,628 ($17.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $48.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SNIPER CLS- SUSTAINMENT ORDER 4
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to LOCKHEED MARTIN CORPORATION for work described as: SNIPER CLS- SUSTAINMENT ORDER 4 Key points: 1. Significant contract value for sustainment services. 2. Sole provider for a critical defense system. 3. Potential for cost overruns due to lack of competition. 4. Focus on electronic and precision equipment maintenance.
Value Assessment
Rating: questionable
The contract value of $17.7M for a one-year sustainment order appears high given the 'NOT COMPETED' status. Benchmarking against similar sustainment contracts for complex electronic systems is difficult without more data, but the lack of competition raises concerns about potential overpricing.
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 negotiation leverage for the government, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as the government lacks alternative pricing benchmarks.
Public Impact
Ensures continued operational readiness of critical Air Force assets. Supports advanced targeting technology essential for modern warfare. Potential impact on budget allocation for other defense priorities if costs are inflated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost escalation
Positive Signals
- Ensures sustainment of critical defense equipment
- Supports Air Force operational capabilities
Sector Analysis
This contract falls within the defense sector, specifically focusing on the maintenance and sustainment of advanced electronic and precision equipment. Spending in this area is critical for maintaining military readiness, but often involves high costs due to specialized requirements and limited vendor pools.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was a sole-source award to a large corporation. Opportunities for small business participation are likely limited unless subcontracting is involved.
Oversight & Accountability
The 'NOT COMPETED' status warrants close oversight to ensure the pricing is fair and reasonable. Robust justification for the sole-source award and regular performance reviews are crucial for accountability.
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 competition.
- Potential for inflated pricing.
- Lack of transparency in cost justification.
- Dependency on a single contractor for critical sustainment.
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 $17.7 million to LOCKHEED MARTIN CORPORATION. SNIPER CLS- SUSTAINMENT ORDER 4
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 $17.7 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What is the justification for awarding this sustainment contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of viable alternatives. The Department of Defense should have a documented justification for this decision. To ensure fair pricing, the agency should conduct a thorough price analysis, potentially using historical data, cost realism assessments, and market research to validate the proposed costs against independent benchmarks, even in a sole-source scenario.
What are the long-term risks associated with relying on a single vendor for sustainment of critical defense systems like the SNIPER pod?
Long-term reliance on a single vendor creates significant risks, including vendor lock-in, potential price gouging over time, and a lack of innovation. It also makes the supply chain vulnerable to disruptions if the vendor faces financial difficulties or geopolitical issues. Furthermore, it can stifle competition and prevent the development of alternative, potentially more cost-effective solutions.
How does the sustainment of the SNIPER CLS contribute to the overall effectiveness and readiness of the Air Force's combat capabilities?
The SNIPER Advanced Targeting Pod (ATP) is a crucial component for modern air-to-ground combat, enabling precision strikes in various conditions. Its sustainment ensures the pod remains operational, calibrated, and up-to-date with necessary software and hardware enhancements. This directly contributes to the Air Force's combat effectiveness by providing pilots with reliable and advanced targeting capabilities, thereby enhancing mission success rates and overall force readiness.
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: $36,229,099
Exercised Options: $36,229,099
Current Obligation: $17,731,628
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: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-20
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