DoD awards $43.4M to Lockheed Martin for AN/AAQ-30 Target Sight System
Contract Overview
Contract Amount: $43,400,000 ($43.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-12-19
End Date: 2017-11-30
Contract Duration: 1,077 days
Daily Burn Rate: $40.3K/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
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $43.4 million to LOCKHEED MARTIN CORPORATION for work described as: AN/AAQ-30 TARGET SIGHT SYSTEM (TSS) Key points: 1. The contract is for the AN/AAQ-30 Target Sight System (TSS). 2. Lockheed Martin Corporation is the sole awardee. 3. The contract was not competed, raising potential value concerns. 4. The sector is Defense, specifically targeting systems.
Value Assessment
Rating: questionable
The contract value is $43.4 million. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar targeting systems from other manufacturers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the AN/AAQ-30 TSS.
Public Impact
Military readiness may be impacted by the availability of advanced targeting systems. Taxpayer funds are allocated to defense procurement, influencing the defense industrial base. Technological advancements in targeting systems can have implications for future defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Specific system procurement
- Firm fixed price contract
Sector Analysis
This contract falls within the Defense sector, specifically for the manufacturing of aeronautical and nautical systems and instruments. Spending in this area is critical for military modernization and operational effectiveness.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Further oversight would be needed to confirm the effectiveness of this management and ensure fair pricing despite the sole-source nature.
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
- Sole-source award limits price competition.
- Potential for inflated costs due to lack of bidding.
- Lack of transparency regarding justification for sole-sourcing.
- Need for independent cost analysis to validate pricing.
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 $43.4 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $43.4 million.
What is the period of performance?
Start: 2014-12-19. End: 2017-11-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without this information, it's impossible to fully assess if the lack of competition was unavoidable or a missed opportunity for cost savings through competitive bidding.
How does the $43.4 million price compare to similar systems procured competitively?
Benchmarking this $43.4 million award against similar targeting systems acquired through competitive processes is crucial for value assessment. If comparable systems were procured at significantly lower costs, it would indicate potential overpayment due to the sole-source nature of this contract.
What is the operational impact of the AN/AAQ-30 TSS, and how critical is it to current defense missions?
Understanding the operational criticality of the AN/AAQ-30 TSS helps contextualize the spending. If it's a vital component for current missions, the procurement is essential, though still subject to value scrutiny. If it's for a less critical or future capability, the sole-source award warrants closer examination.
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: N0016414RJQ29
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: $43,400,000
Exercised Options: $43,400,000
Current Obligation: $43,400,000
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $8,810,006
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-12-19
Current End Date: 2017-11-30
Potential End Date: 2017-11-30 00:00:00
Last Modified: 2019-05-29
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