DoD Awards $74.5M for Multi-Function Towed Array System to Lockheed Martin
Contract Overview
Contract Amount: $74,451,190 ($74.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2008-05-12
End Date: 2017-04-17
Contract Duration: 3,262 days
Daily Burn Rate: $22.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MULTI-FUNCTION TOWED ARRAY (MFTA) SYSTEM
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $74.5 million to LOCKHEED MARTIN CORPORATION for work described as: MULTI-FUNCTION TOWED ARRAY (MFTA) SYSTEM Key points: 1. Significant investment in advanced sonar technology for naval applications. 2. Lockheed Martin, a major defense contractor, secured the award. 3. Potential risks include integration complexity and long-term sustainment costs. 4. Spending falls within the broader Defense contract category.
Value Assessment
Rating: good
The contract value of $74.5 million over its period of performance appears reasonable for a complex system like the MFTA. Benchmarking against similar advanced sonar systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely contributed to price discovery. The use of a definitive contract indicates a well-defined scope.
Taxpayer Impact: Taxpayer funds are being used for critical defense capabilities, with competition aiming to ensure value for money.
Public Impact
Enhances naval surveillance and anti-submarine warfare capabilities. Supports the modernization of the U.S. Navy's fleet. Contributes to national security through advanced defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex system development.
- Long-term sustainment and upgrade costs may exceed initial estimates.
- Dependence on a single prime contractor for critical components.
Positive Signals
- Awarded through full and open competition.
- Utilizes a firm fixed price contract type.
- Supports critical national defense infrastructure.
Sector Analysis
This contract falls within the Defense sector, specifically in the manufacturing of search, detection, and navigation systems. Spending benchmarks for similar complex defense systems are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no direct indication of small business participation in this specific award, suggesting potential subcontracting opportunities.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, quality, and adherence to the contract terms.
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
- Complex system integration challenges.
- Potential for schedule delays.
- Long-term sustainment and upgrade costs.
- Dependence on specific technological components.
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 $74.5 million to LOCKHEED MARTIN CORPORATION. MULTI-FUNCTION TOWED ARRAY (MFTA) 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 $74.5 million.
What is the period of performance?
Start: 2008-05-12. End: 2017-04-17.
What is the projected operational lifespan and sustainment cost of the MFTA system?
The operational lifespan and associated sustainment costs for the MFTA system are critical factors for long-term value assessment. While the contract duration is noted, detailed projections for maintenance, upgrades, and personnel over the system's full lifecycle are essential for a comprehensive understanding of the total cost of ownership and its impact on the defense budget.
How does the performance of the MFTA system compare to previous generations or competing technologies?
Assessing the performance improvements offered by the MFTA system compared to legacy systems or alternative technologies is key to understanding its effectiveness. This includes evaluating enhancements in detection range, accuracy, data processing, and operational flexibility. Such a comparison helps justify the investment and ensures the system meets evolving operational requirements.
What are the key technological risks associated with the MFTA system's development and integration?
The MFTA system likely involves advanced technologies, presenting potential development and integration risks. These could include challenges in sensor fusion, software complexity, electromagnetic interference, and interoperability with existing naval platforms. Proactive risk mitigation strategies and rigorous testing are vital to ensure successful deployment and reliable performance.
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: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N0002407R6217
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $79,680,723
Exercised Options: $76,761,914
Current Obligation: $74,451,190
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-05-12
Current End Date: 2017-04-17
Potential End Date: 2017-04-17 00:00:00
Last Modified: 2017-11-28
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