DoD Awards $342M to Lockheed Martin for AN/AAQ-30 Target Sight System
Contract Overview
Contract Amount: $34,220,100 ($34.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2013-08-27
End Date: 2015-11-30
Contract Duration: 825 days
Daily Burn Rate: $41.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/AAQ-30 (A) TARGET SIGHT SYSTEM (TSS)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $34.2 million to LOCKHEED MARTIN CORPORATION for work described as: AN/AAQ-30 (A) TARGET SIGHT SYSTEM (TSS) Key points: 1. Significant contract value of $342.2 million awarded. 2. Sole-source award to Lockheed Martin Corporation. 3. High risk associated with non-competitive procurement. 4. Spending falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $342.2 million for the AN/AAQ-30 Target Sight System is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems.
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 taxpayers.
Taxpayer Impact: The absence of competition raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The Department of the Navy relies on this specific target sight system, potentially limiting alternatives. The long-term implications of sole-source contracts on innovation and cost-effectiveness are a concern.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Award to a known defense contractor
- Definitive contract type
Sector Analysis
The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector is critical for defense capabilities. Spending benchmarks for similar advanced targeting systems are often high, but competitive pricing is crucial.
Small Business Impact
There is no indication of small business participation in this sole-source award. Future procurements should explore opportunities for small business involvement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving the best possible value and that the necessity for a non-competitive award is justified.
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 limits price competition.
- Potential for inflated costs due to lack of bidding.
- No clear indication of small business participation.
- Oversight needed to ensure value for taxpayer money.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.2 million to LOCKHEED MARTIN CORPORATION. AN/AAQ-30 (A) 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 $34.2 million.
What is the period of performance?
Start: 2013-08-27. End: 2015-11-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the inability of other sources to meet the specific requirements within the necessary timeframe. Without further documentation, it's difficult to ascertain the precise reasons, but it implies that Lockheed Martin's AN/AAQ-30 system is considered essential and irreplaceable by other vendors for the Department of the Navy's operational needs.
What are the potential long-term cost implications of relying on sole-source contracts for critical defense systems like the AN/AAQ-30?
Sole-source contracts can lead to sustained higher costs for taxpayers as there is no competitive pressure to drive down prices. Over time, this can result in significant budget overruns and reduced affordability for essential defense equipment. It also risks stifling innovation from potential competitors and can create vendor lock-in, making future system upgrades or replacements more expensive.
How does the lack of competition impact the government's ability to ensure the AN/AAQ-30 system is technologically advanced and cost-effective?
The absence of competition limits the government's leverage in negotiating price and demanding the latest technological advancements. Without alternative vendors to compare against, it's harder to benchmark performance and cost-effectiveness. This can lead to the government accepting higher prices or less advanced technology than might be available through a competitive process.
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: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016412RJQ43
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: $34,220,100
Exercised Options: $34,220,100
Current Obligation: $34,220,100
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-08-27
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2015-10-16
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