DoD Awards $233M Sole-Source Contract for IRST System to Lockheed Martin
Contract Overview
Contract Amount: $233,000,000 ($233.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2029-09-29
Contract Duration: 1,460 days
Daily Burn Rate: $159.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW CONTRACT FOR IRST RFP 1
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $233.0 million to LOCKHEED MARTIN CORPORATION for work described as: NEW CONTRACT FOR IRST RFP 1 Key points: 1. Significant investment in advanced aircraft systems. 2. Sole-source award raises questions about competition and price. 3. Potential for long-term reliance on a single supplier. 4. Focus on Florida-based operations.
Value Assessment
Rating: questionable
The contract value of $233 million for a definitive contract is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar advanced sensor systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for this critical defense system.
Public Impact
Enhances naval aviation capabilities with advanced infrared search and track technology. Supports high-tech manufacturing jobs in Florida. Ensures a critical component for future naval operations is secured.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for cost overruns
Positive Signals
- Acquisition of advanced technology
- Long-term contract duration
- Supports domestic manufacturing
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the aerospace and defense industry. Spending in this area is often characterized by high R&D costs and specialized production, making competitive bidding challenging but essential for value.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation and does not specify any small business participation. Further investigation is needed to determine if subcontracting opportunities for small businesses are included.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving the best possible value and that the contractor is meeting all performance requirements within the agreed-upon budget.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency on cost justification
- Dependency on a single supplier
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $233.0 million to LOCKHEED MARTIN CORPORATION. NEW CONTRACT FOR IRST RFP 1
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 $233.0 million.
What is the period of performance?
Start: 2025-09-30. End: 2029-09-29.
What specific technical capabilities does the IRST system provide, and how do they justify the sole-source procurement?
The IRST system is designed to detect and track airborne threats using infrared signatures, offering a passive detection method that complements radar. Its justification for sole-source procurement likely stems from unique technological advancements or proprietary integration with existing platforms, making it difficult to replicate or substitute without significant delays and costs.
What is the projected cost-effectiveness of this contract over its full duration, considering potential future modifications or upgrades?
Assessing full cost-effectiveness is challenging due to the sole-source nature. While the initial $233 million is fixed, future modifications, sustainment, and potential upgrades could significantly increase the total lifecycle cost. Without competitive benchmarking, it's difficult to determine if this represents optimal value compared to alternative solutions or phased procurements.
How will the Department of the Navy ensure accountability and performance from Lockheed Martin on this sole-source contract?
The Department of the Navy will likely employ robust contract management strategies, including detailed performance metrics, regular progress reviews, and stringent acceptance criteria. Given the sole-source nature, oversight will be critical to ensure adherence to the firm fixed-price terms and to proactively identify and mitigate any potential risks or deviations from the contract's objectives.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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
Financial Breakdown
Contract Ceiling: $233,000,000
Exercised Options: $233,000,000
Current Obligation: $233,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-09-30
Current End Date: 2029-09-29
Potential End Date: 2029-09-29 00:00:00
Last Modified: 2025-09-30
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