DoD's $30M Thin Line Towed Array Production contract awarded to Lockheed Martin for sonar systems

Contract Overview

Contract Amount: $29,978,825 ($30.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2009-09-10

End Date: 2011-10-20

Contract Duration: 770 days

Daily Burn Rate: $38.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TB-29A THIN LINE TOWED ARRAY PRODUCTION

Place of Performance

Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to LOCKHEED MARTIN CORPORATION for work described as: TB-29A THIN LINE TOWED ARRAY PRODUCTION Key points: 1. Value for money assessed through fixed-price contract type, aiming to control costs. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include the fixed-price nature, which shifts cost overrun risk to the contractor. 4. Performance context is tied to the production of critical sonar components for naval applications. 5. Sector positioning within defense manufacturing, specifically for undersea warfare systems.

Value Assessment

Rating: good

The contract value of approximately $30 million for sonar array production appears reasonable within the defense sector. As a firm-fixed-price contract, it aims to provide cost certainty. Benchmarking against similar sonar system procurements would offer a more precise value assessment, but the fixed-price nature is a positive indicator for cost control. The award to a major defense contractor like Lockheed Martin suggests alignment with established industry capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but a full and open process generally fosters a competitive environment. This approach allows the government to solicit proposals from the widest possible range of qualified sources, potentially leading to better pricing and innovation.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the best possible value by considering all eligible offerors, which can drive down costs through market forces.

Public Impact

Benefits the U.S. Navy by providing essential components for sonar systems. Delivers advanced towed array sonar technology for submarine detection and tracking. Geographic impact is primarily within the defense industrial base, supporting manufacturing jobs. Workforce implications include skilled labor in advanced manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays in production of critical defense hardware.
Reliance on a single large contractor could limit future competitive options if not managed.
Ensuring technological obsolescence is managed throughout the production lifecycle.

Positive Signals

Firm-fixed-price contract structure provides cost predictability.
Award to an experienced defense contractor with a track record in sonar systems.
Full and open competition suggests a robust bidding process.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on electronic and navigation equipment. The market for sonar systems is dominated by a few large defense contractors due to the high technological barriers and specialized nature of the products. Spending in this area is driven by national security requirements, particularly for undersea warfare capabilities. Comparable spending benchmarks would involve other procurements of towed array systems or related acoustic sensing equipment.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the nature of advanced sonar technology production, it is likely that the prime contractor, Lockheed Martin, would subcontract portions of the work. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though detailed performance metrics may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sonar Systems Procurement
Undersea Warfare Technology
Defense Electronic Manufacturing
Towed Array Sonar Systems

Risk Flags

Contract awarded to a single large prime contractor.
Potential for schedule slippage in defense production.
Reliance on advanced, specialized manufacturing processes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to LOCKHEED MARTIN CORPORATION. TB-29A THIN LINE TOWED ARRAY PRODUCTION

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 $30.0 million.

What is the period of performance?

Start: 2009-09-10. End: 2011-10-20.

What is Lockheed Martin's track record with similar towed array sonar contracts for the Department of Defense?

Lockheed Martin Corporation has a long-standing and extensive track record in developing and producing advanced sonar systems for the U.S. Navy and other defense clients. They are a primary contractor for various sonar technologies, including towed arrays, hull-mounted sonars, and sonobuoys. Their experience spans decades, encompassing research, development, testing, and full-rate production. This includes systems integrated into submarines, surface vessels, and maritime patrol aircraft. The company's history with such complex defense systems suggests a high level of technical expertise and manufacturing capability relevant to the TB-29A Thin Line Towed Array Production contract. Past performance reviews and contract histories would provide more granular detail on their success rates, on-time delivery, and adherence to specifications for similar programs.

How does the $29.98 million award compare to the estimated value or previous procurements of the TB-29A Thin Line Towed Array?

The award value of $29.98 million for the TB-29A Thin Line Towed Array Production contract needs to be contextualized against its specific scope and duration. Without access to the original contract solicitation's estimated value or data from prior, identical production runs, a direct comparison is challenging. However, the duration of the contract (770 days) and the firm-fixed-price nature suggest a defined production quantity. If this represents a single lot or a specific number of arrays, its cost-effectiveness can be assessed by dividing the total value by the number of units produced. Benchmarking against other towed array procurements, considering factors like technological sophistication and quantity, would provide a broader perspective on whether this price point represents good value for the Department of the Navy.

What are the primary risks associated with the production of towed array sonar systems under a firm-fixed-price contract?

The primary risks associated with producing towed array sonar systems under a firm-fixed-price (FFP) contract primarily fall on the contractor, Lockheed Martin Corporation. These risks include cost overruns if manufacturing expenses exceed projections due to material price increases, labor inefficiencies, or unforeseen technical challenges. Schedule delays are another significant risk; if production timelines are not met, the contractor may incur penalties or face reputational damage. Technological obsolescence is also a concern; if the system's technology becomes outdated during the production cycle, it could impact its effectiveness and future relevance. Furthermore, ensuring the stringent quality and performance specifications required for advanced sonar systems can be challenging, and any failures in meeting these could lead to costly rework or rejection of deliverables.

What is the expected program effectiveness or impact of these Thin Line Towed Array systems for naval operations?

The Thin Line Towed Array (TB-29A) systems are crucial components for enhancing the U.S. Navy's anti-submarine warfare (ASW) capabilities. These arrays are designed to be towed behind submarines or surface ships, providing a long baseline for detecting and classifying underwater acoustic signatures. Their effectiveness lies in their ability to detect faint sounds over extended ranges, offering a significant advantage in identifying and tracking potential threats. The 'thin line' design likely refers to a specific form factor optimized for deployment and performance in various operational environments. By improving the Navy's situational awareness and detection range, these systems contribute directly to mission success, force protection, and overall maritime security.

How has federal spending on sonar systems and related defense electronics evolved over the past decade?

Federal spending on sonar systems and related defense electronics has generally remained robust, driven by ongoing national security priorities and the need to maintain technological superiority, particularly in undersea warfare. While specific figures fluctuate annually based on budget allocations, modernization programs, and threat assessments, the Department of Defense consistently invests billions in advanced sensor technologies. This includes significant outlays for submarine-based sonar, surface ship sonar, and airborne systems like sonobuoys. Trends often show a push towards more sophisticated, networked, and data-processing-intensive systems, reflecting advancements in artificial intelligence and signal processing. Periods of increased geopolitical tension or perceived threats often correlate with heightened investment in these critical defense capabilities.

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: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N0002409R6238

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 22

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,978,825

Exercised Options: $29,978,825

Current Obligation: $29,978,825

Contract Characteristics

Cost or Pricing Data: NO

Timeline