DoD Awards $17.4M to Lockheed Martin for Target Sight System Sustainment
Contract Overview
Contract Amount: $17,404,792 ($17.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2026-06-30
Contract Duration: 1,370 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTRACTOR SUSTAINMENT SERVICES IN SUPPORT OF TARGET SIGHT SYSTEM
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to LOCKHEED MARTIN CORPORATION for work described as: CONTRACTOR SUSTAINMENT SERVICES IN SUPPORT OF TARGET SIGHT SYSTEM Key points: 1. Significant contract value for specialized defense system sustainment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract (2022-2026) indicates ongoing need for system support. 4. Focus on IT/Defense sector, specifically navigation and guidance systems.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar sustainment contracts for complex defense systems is difficult without more detailed cost breakdowns.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this sustainment contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Ensures continued operational readiness of critical defense systems. Supports advanced targeting capabilities for naval operations. Potential for increased costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Critical system sustainment
- Long-term support agreement
Sector Analysis
This contract falls within the Defense sector, specifically supporting navigation and guidance systems. Spending on sustainment for complex military hardware is substantial and often involves specialized contractors.
Small Business Impact
The contract data indicates no small business participation. This is common for large, sole-source defense contracts requiring specialized expertise and long-standing relationships with prime contractors.
Oversight & Accountability
Oversight is crucial for cost-plus contracts to ensure efficiency and prevent overruns. The Department of the Navy is responsible for monitoring performance and costs, but the sole-source nature limits external accountability.
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 competition.
- Cost-plus contract type carries inherent cost risk.
- No small business participation.
- Long-term duration may lock in potentially inefficient costs.
- Lack of transparency in cost build-up.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to LOCKHEED MARTIN CORPORATION. CONTRACTOR SUSTAINMENT SERVICES IN SUPPORT OF TARGET SIGHT SYSTEM
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 $17.4 million.
What is the period of performance?
Start: 2022-09-29. End: 2026-06-30.
What is the justification for the sole-source award, and what steps are taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. To ensure fair pricing, the government may conduct independent cost analyses or rely on historical pricing data, though competitive benchmarking is absent, making verification challenging.
How does the cost-plus fixed fee structure impact the contractor's incentive to control costs?
In a cost-plus fixed fee contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee. While the fixed fee provides some incentive for efficiency, the primary risk of cost overruns lies with the government, potentially reducing the contractor's motivation to aggressively control expenses.
What is the long-term strategy for ensuring competitive sourcing for future sustainment needs?
The long-term strategy should involve exploring options for breaking down the sustainment requirements into smaller, more competitive packages or developing alternative technologies. Proactive market research and fostering new entrants into the specialized sustainment market are essential to avoid perpetual sole-source awards.
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: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016420RJQ96
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $26,194,858
Exercised Options: $21,491,980
Current Obligation: $17,404,792
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $773,682
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0016420GJQ96
IDV Type: BOA
Timeline
Start Date: 2022-09-29
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-18
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)