DoD Awards $783M for AN/SLQ-32(V)6 Systems to Lockheed Martin Under Full and Open Competition
Contract Overview
Contract Amount: $783,182,343 ($783.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2020-01-28
End Date: 2025-11-30
Contract Duration: 2,133 days
Daily Burn Rate: $367.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY20 AN/SLQ-32(V)6 W/O SHELTER STRUCTURE
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $783.2 million to LOCKHEED MARTIN CORPORATION for work described as: FY20 AN/SLQ-32(V)6 W/O SHELTER STRUCTURE Key points: 1. Significant investment in advanced electronic warfare capabilities for naval platforms. 2. Sole awardee is Lockheed Martin, a major defense contractor. 3. Contract duration extends to late 2025, indicating a long-term need. 4. The award is a definitive contract with a firm fixed price structure.
Value Assessment
Rating: good
The $783M award for the AN/SLQ-32(V)6 system appears reasonable given its advanced nature and the sole source provider. Benchmarking against similar complex electronic warfare systems is challenging due to proprietary technology and specialized applications.
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. This method is expected to yield fair pricing, although the specific price discovery mechanisms are not detailed.
Taxpayer Impact: Taxpayer funds are allocated for critical defense modernization, aiming to enhance national security through advanced electronic warfare capabilities.
Public Impact
Enhances U.S. Navy's electronic warfare capabilities, crucial for fleet protection. Supports advanced threat detection and countermeasures for naval vessels. Contributes to maintaining technological superiority in maritime defense.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns in long-term, complex defense contracts.
- Reliance on a single contractor for critical system sustainment.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Addresses a critical national security need.
Sector Analysis
This contract falls within the Defense sector, specifically in electronic warfare systems. Spending in this area is driven by evolving geopolitical threats and the need for technological superiority. Benchmarks for similar advanced EW systems are highly variable.
Small Business Impact
The prime contractor is Lockheed Martin Corporation. There is no explicit mention of small business participation in the provided data, suggesting potential for subcontracting opportunities but no direct award to small businesses.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Oversight will focus on contract performance, delivery schedules, and adherence to the firm fixed price.
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
- Long contract duration increases risk of cost escalation.
- Sole awardee may limit future competitive pricing.
- Complexity of EW systems can lead to unforeseen technical challenges.
- Potential for scope creep if requirements are not tightly managed.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $783.2 million to LOCKHEED MARTIN CORPORATION. FY20 AN/SLQ-32(V)6 W/O SHELTER STRUCTURE
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 $783.2 million.
What is the period of performance?
Start: 2020-01-28. End: 2025-11-30.
What is the specific breakdown of costs within the $783M award, and how does it compare to the development and production costs of previous generations of the AN/SLQ-32 system?
The provided data does not detail the cost breakdown of the $783M award. A comprehensive analysis would require access to the contract's financial statements and historical cost data for the AN/SLQ-32 system's previous iterations. Understanding the cost drivers, such as labor, materials, and overhead, is crucial for assessing value for money.
What are the key performance metrics and testing protocols used to ensure the effectiveness of the AN/SLQ-32(V)6 system, and how are these validated by the Defense Contract Management Agency?
Effectiveness is typically validated through rigorous testing and evaluation phases, including operational assessments and system integration tests, against defined performance parameters. The DCMA's role involves monitoring contractor adherence to these testing protocols and verifying that the system meets all specified requirements before acceptance.
Given the long-term nature of the contract (ending 2025), what provisions are in place to mitigate risks associated with technological obsolescence or the emergence of superior competing technologies?
Mitigation strategies often include contract clauses for technical refresh, performance-based logistics, and periodic reviews of technological advancements. The firm fixed price nature might limit flexibility for upgrades unless change orders are issued, highlighting the importance of initial system design and foresight in anticipating future threats.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002419R5503
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $795,679,415
Exercised Options: $783,182,343
Current Obligation: $783,182,343
Actual Outlays: $25,906,553
Subaward Activity
Number of Subawards: 612
Total Subaward Amount: $1,415,268,160
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-01-28
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-07-16
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