DoD awards $48.8M to Lockheed Martin for AN/AAQ-30 Target Sight System, a sole-source contract
Contract Overview
Contract Amount: $48,794,163 ($48.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-05-22
End Date: 2015-05-31
Contract Duration: 1,104 days
Daily Burn Rate: $44.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/AAQ-30 TARGET SIGHT SYSTEM (TSS)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $48.8 million to LOCKHEED MARTIN CORPORATION for work described as: AN/AAQ-30 TARGET SIGHT SYSTEM (TSS) Key points: 1. The contract value is $48.8 million. 2. Lockheed Martin Corporation is the sole awardee. 3. The contract falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. 4. This is a sole-source award, raising questions about competition. 5. The contract duration is 1104 days.
Value Assessment
Rating: fair
The contract value of $48.8 million for a Target Sight System needs comparison to similar systems. Without specific unit counts or detailed specifications, a precise pricing assessment is difficult. However, the award amount suggests a significant investment in advanced targeting technology.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. This lack of competition limits price discovery and potentially leads to higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
The AN/AAQ-30 TSS is a critical component for military aircraft, enhancing targeting capabilities. This award supports advanced defense technology development and manufacturing. The contract's sole-source status may impact the availability of this technology to other potential users or lead to higher unit costs. The duration of the contract suggests a long-term need for this system within the Department of the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of detailed cost breakdown makes value assessment difficult.
- Potential for higher costs due to non-competitive nature.
Positive Signals
- Award to a major defense contractor with established capabilities.
- Supports critical military targeting technology.
- Firm Fixed Price contract provides cost certainty once awarded.
Sector Analysis
The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this sector is crucial for maintaining and advancing military operational capabilities, with significant government investment typically seen in advanced sensor and targeting systems.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a large corporation like Lockheed Martin suggests a focus on established prime contractors for complex defense systems.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight would typically involve contract performance monitoring, quality assurance, and financial management to ensure delivery of the specified system and adherence to the contract terms.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Limited transparency on cost justification
- Potential for cost overruns due to non-competitive nature
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.8 million to LOCKHEED MARTIN CORPORATION. AN/AAQ-30 TARGET SIGHT SYSTEM (TSS)
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 $48.8 million.
What is the period of performance?
Start: 2012-05-22. End: 2015-05-31.
What is the specific operational advantage provided by the AN/AAQ-30 TSS that justifies a sole-source award?
The AN/AAQ-30 TSS likely provides unique capabilities in target acquisition, tracking, and identification for naval aviation platforms. Justification for a sole-source award would typically stem from proprietary technology, unique system integration requirements, or a lack of alternative qualified sources capable of meeting the specific performance demands within the required timeframe.
How does the $48.8 million cost compare to the expected lifespan and operational impact of the AN/AAQ-30 TSS?
Assessing the value requires understanding the system's expected operational lifespan, its contribution to mission success rates, and potential cost savings through improved targeting accuracy (e.g., reduced collateral damage, fewer mission aborts). Without this context, the $48.8 million figure is difficult to benchmark against its long-term benefits and operational impact.
What measures are in place to ensure effective performance and accountability for this sole-source contract?
Despite being sole-source, the Department of the Navy would implement standard contract oversight mechanisms. This includes performance metrics, quality assurance inspections, and regular progress reviews to ensure Lockheed Martin meets all contractual requirements, delivers a functional system, and adheres to the agreed-upon schedule and specifications.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016412RJQ26
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 5600 W SAND LAKE RD # MP-265, ORLANDO, FL, 32819
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: $48,794,163
Exercised Options: $48,794,163
Current Obligation: $48,794,163
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-05-22
Current End Date: 2015-05-31
Potential End Date: 2015-05-31 00:00:00
Last Modified: 2015-05-14
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