DoD awards $11.8M for AN/SSN-2(V)5 NAVC2 System to Lockheed Martin under full and open competition
Contract Overview
Contract Amount: $11,782,429 ($11.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2006-12-21
End Date: 2011-02-28
Contract Duration: 1,530 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/SSN-2(V)5 (NAVC2) SYSTEM
Place of Performance
Location: MANASSAS, PRINCE WILLIAM County, VIRGINIA, 20110
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to LOCKHEED MARTIN CORPORATION for work described as: AN/SSN-2(V)5 (NAVC2) SYSTEM Key points: 1. The contract value is $11.8 million, awarded to a single, large business. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The sector is Defense, specifically Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems.
Value Assessment
Rating: fair
The contract value of $11.8 million for a specialized system appears reasonable given the contractor and the nature of defense systems. Benchmarking against similar complex navigation systems would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The $11.8 million expenditure represents taxpayer investment in critical defense navigation technology, with the expectation of value derived from competitive sourcing.
Public Impact
Enhances naval capabilities through advanced navigation and detection systems. Supports military readiness and operational effectiveness for the Department of Defense. Contributes to the technological advancement within the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole large business awardee
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing complex navigation and guidance systems. Spending in this area is driven by national security needs and technological innovation, with typical contract values varying widely based on system complexity.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved as subcontractors in this specific award based on the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Oversight would focus on contract compliance, delivery schedules, and quality assurance to ensure taxpayer funds are used effectively.
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
- Contract awarded to a single large business.
- Limited insight into specific performance metrics.
- Potential for market concentration in specialized defense systems.
- Duration of contract (1530 days) suggests a significant project lifecycle.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to LOCKHEED MARTIN CORPORATION. AN/SSN-2(V)5 (NAVC2) SYSTEM
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 $11.8 million.
What is the period of performance?
Start: 2006-12-21. End: 2011-02-28.
What is the specific functionality and criticality of the AN/SSN-2(V)5 system to naval operations?
The AN/SSN-2(V)5 (NAVC2) system is crucial for naval operations, providing essential search, detection, navigation, and guidance capabilities. Its specific functions likely include enhancing situational awareness, enabling precise maneuvering in various conditions, and supporting target acquisition, thereby directly impacting mission success and crew safety.
How does the firm fixed price contract type mitigate potential cost overruns for the government?
A firm fixed price (FFP) contract shifts the majority of cost risk to the contractor. Lockheed Martin is obligated to deliver the AN/SSN-2(V)5 system for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage their expenses efficiently and provides the government with cost certainty, preventing unexpected increases.
What are the long-term implications of this award on competition within the specialized navigation system market?
While this award was under full and open competition, the fact that it went to a single large incumbent like Lockheed Martin could indicate high barriers to entry or specialized expertise. Future procurements will reveal if new competitors emerge or if the market remains concentrated, impacting innovation and long-term pricing dynamics.
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: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002406R6349
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 9500 GODWIN DR, MANASSAS, VA, 20110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,586,505
Exercised Options: $19,062,230
Current Obligation: $11,782,429
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-12-21
Current End Date: 2011-02-28
Potential End Date: 2011-02-28 00:00:00
Last Modified: 2023-05-26
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