DoD awards $295.7M to Lockheed Martin for AN/AAQ-30A Target Sight System
Contract Overview
Contract Amount: $295,657,346 ($295.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2016-12-22
End Date: 2022-03-02
Contract Duration: 1,896 days
Daily Burn Rate: $155.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS AN/AAQ-30A TARGET SIGHT SYSTEM (TSS)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $295.7 million to LOCKHEED MARTIN CORPORATION for work described as: FMS AN/AAQ-30A TARGET SIGHT SYSTEM (TSS) Key points: 1. Significant investment in advanced targeting technology for defense. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Potential for cost overruns or suboptimal pricing due to lack of competition. 4. Sector focus on advanced defense systems and instrumentation.
Value Assessment
Rating: fair
The total award of $295.7 million over six years for the AN/AAQ-30A TSS appears substantial. Without competitive bidding, it's difficult to benchmark against similar systems, but the duration and nature of the system suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for this critical defense system.
Public Impact
Enhances military targeting capabilities with advanced sensor technology. Supports ongoing defense modernization efforts within the Department of Defense. Ensures continued availability of a specialized system for military operations. Potential impact on future defense procurement strategies regarding sole-source awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Lack of competition may lead to higher costs.
- Long contract duration could mask inefficiencies.
Positive Signals
- Provides critical targeting technology.
- Supports established defense contractor.
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced sensor and targeting systems. Spending benchmarks for similar sole-source procurements of specialized defense equipment are difficult to establish without more data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this was a sole-source award to a large corporation, Lockheed Martin. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency. Oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed price. The sole-source nature necessitates careful monitoring to ensure fair pricing.
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
- Lack of competition
- Potential for price inflation
- Limited transparency in pricing
- Long-term dependency on a single supplier
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $295.7 million to LOCKHEED MARTIN CORPORATION. FMS AN/AAQ-30A 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 $295.7 million.
What is the period of performance?
Start: 2016-12-22. End: 2022-03-02.
What was the justification for awarding this contract on a sole-source basis instead of pursuing competitive bidding?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. For the AN/AAQ-30A TSS, the government likely determined that only Lockheed Martin possessed the necessary technology, expertise, or existing infrastructure to fulfill the requirement effectively and within the desired timeframe, thus precluding a competitive process.
How does the pricing of this sole-source contract compare to similar systems acquired through competitive means?
Direct comparison is challenging due to the sole-source nature. However, historical data on competitive procurements for comparable targeting systems often reveals lower unit costs. The absence of competition here suggests a potential price premium, necessitating rigorous government oversight to ensure the price remains reasonable relative to the system's value and development costs.
What are the long-term implications of relying on sole-source contracts for critical defense systems like the TSS?
Long-term reliance on sole-source contracts can stifle innovation by reducing competitive pressure, potentially leading to higher sustainment costs and slower technological advancement. It also concentrates critical capabilities within a single supplier, creating potential supply chain risks and reducing the government's negotiating leverage over time.
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: N0016415RJQ71
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $295,657,346
Exercised Options: $295,657,346
Current Obligation: $295,657,346
Actual Outlays: $35,638,697
Subaward Activity
Number of Subawards: 157
Total Subaward Amount: $844,954,592
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-12-22
Current End Date: 2022-03-02
Potential End Date: 2022-03-02 00:00:00
Last Modified: 2022-12-15
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