DoD Awards $58.7M for F/A-18 Infrared Receiver and Processors to Lockheed Martin
Contract Overview
Contract Amount: $58,677,624 ($58.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-28
End Date: 2024-09-15
Contract Duration: 1,145 days
Daily Burn Rate: $51.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F/A-18 IRST - INFRARED RECEIVER (IRR)AND PROCESSORS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $58.7 million to LOCKHEED MARTIN CORPORATION for work described as: F/A-18 IRST - INFRARED RECEIVER (IRR)AND PROCESSORS Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Potential risk associated with single-vendor reliance for critical systems. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The $58.7 million award for F/A-18 Infrared Receiver and Processors is a substantial sum. Benchmarking against similar specialized defense components is difficult without more granular data, but 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 awarded on a sole-source basis, indicating no other vendors were considered. This limits price discovery and potentially leads to higher costs for the government compared to a competitive procurement process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these critical F/A-18 components due to the absence of competitive pressure.
Public Impact
Ensures continued operational readiness for the F/A-18 Super Hornet fleet. Supports advanced threat detection capabilities for naval aviation. Highlights reliance on a single prime contractor for specialized defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Supports critical defense platform
- Firm fixed price contract
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often characterized by high technical barriers to entry and significant reliance on established defense contractors like Lockheed Martin.
Small Business Impact
The awardee, Lockheed Martin Corporation, is a large defense contractor. There is no indication that small businesses were involved in this specific sole-source delivery order, suggesting limited opportunities for SMB participation in this particular procurement.
Oversight & Accountability
As a sole-source award, this contract warrants close oversight to ensure fair pricing and effective delivery. The Department of the Navy is responsible for monitoring performance and costs to safeguard taxpayer funds.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Reliance on a single supplier for critical components.
- Lack of transparency regarding specific technical requirements.
- Limited opportunity for small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.7 million to LOCKHEED MARTIN CORPORATION. F/A-18 IRST - INFRARED RECEIVER (IRR)AND PROCESSORS
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 Navy).
What is the total obligated amount?
The obligated amount is $58.7 million.
What is the period of performance?
Start: 2021-07-28. End: 2024-09-15.
What is the justification for the sole-source award, and were any market research efforts conducted to identify potential alternative sources?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. The Department of the Navy would need to provide documentation detailing the specific reasons and any market research undertaken to support this determination, ensuring it aligns with federal acquisition regulations.
How does the unit cost of these infrared receivers and processors compare to previous procurements or similar systems on other platforms?
Without access to historical pricing data or benchmarks for comparable systems, a direct unit cost comparison is challenging. However, the absence of competition in this sole-source award suggests that the negotiated price might be higher than what could be achieved through a competitive bidding process. Further analysis would require access to detailed cost breakdowns and market intelligence.
What is the long-term strategy for ensuring competitive sourcing or mitigating risks associated with reliance on Lockheed Martin for this critical F/A-18 component?
The long-term strategy should involve exploring options for future competition, such as encouraging new entrants, developing alternative technologies, or breaking down the requirement into smaller, more accessible components. Mitigating sole-source risk also includes robust contract management, performance monitoring, and potentially negotiating longer-term agreements with built-in price adjustments based on market conditions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001921B0316
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1801 STATE RT 17 C, OWEGO, NY, 13827
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: $58,677,624
Exercised Options: $58,677,624
Current Obligation: $58,677,624
Subaward Activity
Number of Subawards: 44
Total Subaward Amount: $5,791,904
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001919G0029
IDV Type: BOA
Timeline
Start Date: 2021-07-28
Current End Date: 2024-09-15
Potential End Date: 2024-09-15 00:00:00
Last Modified: 2025-12-09
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