DoD awards $93M to Lockheed Martin for SQQ-89A(V)15 system upgrades, impacting naval sonar capabilities
Contract Overview
Contract Amount: $93,164,367 ($93.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2007-06-08
End Date: 2015-06-24
Contract Duration: 2,938 days
Daily Burn Rate: $31.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING AND UPGRADE KITS FOR THE SQQ-89A(V)15 SYSTEMS.
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $93.2 million to LOCKHEED MARTIN CORPORATION for work described as: NON-RECURRING ENGINEERING AND UPGRADE KITS FOR THE SQQ-89A(V)15 SYSTEMS. Key points: 1. Significant investment in critical naval sonar technology. 2. Sole awardee suggests specialized expertise or limited market. 3. Long contract duration (2007-2015) may indicate project complexity or evolving requirements. 4. Focus on non-recurring engineering and upgrade kits points to modernization efforts.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar complex defense system upgrades is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded as a definitive contract, the 'full and open competition' designation suggests multiple bids were considered. However, the sole awardee implies Lockheed Martin was selected as the most capable or cost-effective option.
Taxpayer Impact: Taxpayer funds are directed towards enhancing national defense capabilities through advanced sonar technology.
Public Impact
Enhances the detection and tracking capabilities of U.S. Navy vessels. Supports anti-submarine warfare (ASW) operations, a key component of maritime security. Contributes to the technological superiority of naval platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- Long duration may mask inefficiencies.
Positive Signals
- Addresses critical national security needs.
- Leverages established defense contractor expertise.
- Modernizes essential naval systems.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced electronic systems for naval applications. Spending benchmarks for complex, non-recurring engineering on specialized defense platforms are highly variable.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial given the CPFF structure and the critical nature of the systems being upgraded.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration.
- Lack of detailed performance metrics.
- Sole awardee despite 'full and open' designation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $93.2 million to LOCKHEED MARTIN CORPORATION. NON-RECURRING ENGINEERING AND UPGRADE KITS FOR THE SQQ-89A(V)15 SYSTEMS.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $93.2 million.
What is the period of performance?
Start: 2007-06-08. End: 2015-06-24.
What was the competitive landscape like for this specific upgrade, and did the 'full and open' competition truly drive down costs?
While advertised as 'full and open,' the award to a single entity, Lockheed Martin, raises questions about the breadth of actual competition. The CPFF structure, combined with the lack of detailed cost breakdowns, makes it difficult to definitively assess if the competition effectively drove down costs or if the price reflected the unique capabilities required for the SQQ-89A(V)15 system.
How does the cost of these upgrade kits compare to the overall lifecycle cost of the SQQ-89A(V)15 system, and what is the projected return on investment?
Without specific cost breakdowns for the upgrade kits versus the total system cost, a precise ROI is difficult to calculate. However, the $93 million investment aims to enhance the system's effectiveness, potentially extending its operational life and improving mission success rates, which are critical for naval defense and justify the expenditure.
What specific technological advancements or performance improvements were realized through this non-recurring engineering effort?
The data indicates the contract was for 'non-recurring engineering and upgrade kits,' suggesting the goal was to introduce new capabilities or significantly improve existing ones in the SQQ-89A(V)15 sonar system. These likely include enhanced detection ranges, improved signal processing, better target classification, and potentially reduced false alarm rates, all crucial for modern naval warfare.
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: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002407R5202
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 497 ELECTRONICS PKWY # 5 # BLD, LIVERPOOL, NY, 13088
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $109,579,027
Exercised Options: $94,547,929
Current Obligation: $93,164,367
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-06-08
Current End Date: 2015-06-24
Potential End Date: 2015-06-24 00:00:00
Last Modified: 2020-10-09
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