DoD awards $31.16M for AN/AAQ-30(A) Target Sight System to Lockheed Martin

Contract Overview

Contract Amount: $31,163,000 ($31.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2013-12-18

End Date: 2016-05-31

Contract Duration: 895 days

Daily Burn Rate: $34.8K/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 $31.2 million to LOCKHEED MARTIN CORPORATION for work described as: AN/AAQ-30(A) TARGET SIGHT SYSTEM (TSS) Key points: 1. Single award to Lockheed Martin for a critical targeting system. 2. No competition reported, raising questions about price discovery. 3. Potential risk associated with sole-source procurement for advanced defense technology. 4. Sector: Defense - specifically targeting and navigation systems.

Value Assessment

Rating: fair

The contract value of $31.16M for the AN/AAQ-30(A) TSS appears to be a standard award for specialized defense equipment. Without comparative data on similar systems or previous contracts for this specific item, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs compared to a competitive environment.

Taxpayer Impact: Taxpayer funds are used for this sole-source award, with the potential for overpayment due to the lack of competitive bidding.

Public Impact

Enhances targeting capabilities for naval aircraft. Supports advanced situational awareness for pilots. Contributes to overall defense readiness and mission effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition.
  • Lack of price benchmark data.
  • Potential for cost overruns without competition.

Positive Signals

  • Critical defense technology.
  • Awarded to established defense contractor.
  • Supports naval aviation modernization.

Sector Analysis

This contract falls within the defense sector, specifically for advanced targeting and navigation systems. Spending in this area is crucial for maintaining military technological superiority, but often involves high unit costs and limited competition.

Small Business Impact

The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, suggesting opportunities may be subcontracted.

Oversight & Accountability

The contract was awarded by the Department of the Navy. Oversight would typically involve program management reviews and contract performance monitoring to ensure delivery and quality standards are met.

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 competitive bidding.
  • Potential for inflated pricing.
  • Limited transparency on price justification.

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 $31.2 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 $31.2 million.

What is the period of performance?

Start: 2013-12-18. End: 2016-05-31.

What is the justification for the sole-source award of the AN/AAQ-30(A) TSS, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent need where only one source can fulfill the requirement. Price reasonableness is usually determined through cost analysis, comparison to previous contracts, or market research. Without specific documentation, it's difficult to ascertain the exact justification and pricing methodology used.

What are the long-term cost implications of sole-source procurements for advanced defense systems like the AN/AAQ-30(A) TSS?

Sole-source procurements can lead to higher long-term costs due to the absence of competitive pressure to reduce prices. Contractors may have less incentive to innovate for cost savings. Over time, this can result in a higher total cost of ownership for the government, impacting budget allocation for other critical defense needs.

How does the AN/AAQ-30(A) TSS contribute to the overall effectiveness and mission success of naval aviation platforms?

The AN/AAQ-30(A) TSS is a crucial component for modern naval aviation, providing pilots with enhanced targeting capabilities in various conditions. Its integration allows for precise engagement of threats, improved situational awareness, and increased mission success rates, directly contributing to the effectiveness of air operations and platform survivability.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, 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: N0016413RJQ65

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: $33,996,000

Exercised Options: $31,163,000

Current Obligation: $31,163,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2013-12-18

Current End Date: 2016-05-31

Potential End Date: 2016-05-31 00:00:00

Last Modified: 2015-10-16

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