DoD awards $33.8M for F/A-18 IRST system components, with Lockheed Martin as sole source

Contract Overview

Contract Amount: $33,827,568 ($33.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-08-31

End Date: 2025-11-30

Contract Duration: 1,552 days

Daily Burn Rate: $21.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4 CONTROL PROCESSORS AND 10 INFRARED RECEIVERS IN SUPPORT OF THE F/A-18 BLOCK II INFRARED SEARCH AND TRACK SYSTEM (IRST)

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to LOCKHEED MARTIN CORPORATION for work described as: 4 CONTROL PROCESSORS AND 10 INFRARED RECEIVERS IN SUPPORT OF THE F/A-18 BLOCK II INFRARED SEARCH AND TRACK SYSTEM (IRST) Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on critical components for the F/A-18 Super Hornet's advanced sensor system. 3. Long-term contract duration suggests sustained need for these specialized parts. 4. Potential for cost overruns due to lack of competitive bidding. 5. Performance hinges on Lockheed Martin's ability to deliver complex electronic components. 6. Sector positioning within aerospace and defense electronics manufacturing.

Value Assessment

Rating: fair

The contract value of $33.8 million for 4 control processors and 10 infrared receivers appears substantial, especially given the sole-source nature. Without competitive bids, it's difficult to benchmark the value for money. The pricing is likely based on historical costs or negotiated rates with Lockheed Martin, which may not reflect the most economical market price. The duration of the contract (over 3 years) suggests a significant investment in these specific components for the F/A-18 program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Lockheed Martin Corporation, was considered. This approach is typically used when a specific capability or technology is unique to a single provider, or for follow-on work where competition is not feasible. The lack of competition means there was no opportunity for other manufacturers to bid, potentially leading to higher prices than if multiple companies had competed.

Taxpayer Impact: Taxpayers may be paying a premium for these components due to the absence of competitive pressure. The government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Public Impact

Directly benefits the U.S. Navy's F/A-18 Super Hornet fleet by ensuring the continued operation and upgrade of its Infrared Search and Track (IRST) system. Enhances the combat effectiveness of fighter aircraft by providing advanced situational awareness and target detection capabilities. Supports specialized manufacturing jobs within Lockheed Martin's supply chain, likely concentrated in areas with defense industry presence. Ensures the technological superiority of a key naval aviation platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Reliance on a single contractor for critical components could create supply chain vulnerabilities.
Lack of transparency in pricing due to non-competitive nature.

Positive Signals

Ensures continued availability of critical components for a vital naval aviation platform.
Leverages established expertise of Lockheed Martin in advanced sensor systems.
Supports the modernization and operational readiness of the F/A-18 fleet.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on electronic warfare and sensor systems manufacturing. The market for such specialized components is often dominated by a few large prime contractors and their specialized subcontractors. The value of this contract, while significant, represents a small fraction of the overall defense electronics market, which is driven by government procurement for military platforms. Benchmarking comparable spending would require detailed analysis of other sole-source awards for similar advanced sensor components.

Small Business Impact

This contract does not appear to involve a small business set-aside, as it was awarded to Lockheed Martin Corporation, a large prime contractor. There is no explicit information regarding subcontracting plans for small businesses within this specific delivery order. The impact on the small business ecosystem is likely indirect, potentially through Lockheed Martin's broader supply chain, but not directly driven by this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded in the contract terms, including delivery schedules and performance specifications. Transparency is limited due to the sole-source nature, but contract awards are generally reported in federal procurement databases. The Inspector General for the Department of Defense may conduct audits or investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

F/A-18 Super Hornet Program
Naval Aviation Systems
Infrared Search and Track (IRST) Systems
Defense Electronics Manufacturing
Aerospace Component Procurement

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for cost overruns
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to LOCKHEED MARTIN CORPORATION. 4 CONTROL PROCESSORS AND 10 INFRARED RECEIVERS IN SUPPORT OF THE F/A-18 BLOCK II INFRARED SEARCH AND TRACK SYSTEM (IRST)

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 $33.8 million.

What is the period of performance?

Start: 2021-08-31. End: 2025-11-30.

What is Lockheed Martin's track record with the F/A-18 IRST system and similar defense electronics contracts?

Lockheed Martin Corporation has a long-standing history as a prime contractor for numerous U.S. defense programs, including significant involvement with the F/A-18 Super Hornet platform. They are known for developing and producing advanced sensor systems, including infrared technologies. Their track record with the IRST system specifically would involve prior development, integration, and potentially previous supply contracts for components. Analyzing their past performance on similar sole-source or competitive contracts for complex electronic systems would reveal their reliability in terms of delivery, quality, and cost control. Historical data from contract performance reports and past performance reviews would be crucial to assess their suitability and the justification for a sole-source award.

How does the unit cost of these control processors and infrared receivers compare to market rates or similar government procurements?

Determining the precise unit cost and comparing it to market rates is challenging for this sole-source contract. The total award of $33.8 million for an unspecified number of processors and receivers over the contract period makes calculating a definitive unit price difficult without further breakdown. Generally, sole-source procurements tend to have higher unit costs compared to competitively bid contracts due to the lack of price pressure. To benchmark, one would need to find data on similar advanced control processors and infrared receivers procured competitively by the DoD or other agencies, factoring in differences in specifications, technology maturity, and volume. Without such comparative data, assessing the value for money on a per-unit basis remains speculative.

What are the primary risks associated with this sole-source contract for the F/A-18 IRST system components?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the absence of competition. Without competing bids, Lockheed Martin may not be incentivized to offer the lowest possible price. Another significant risk is supply chain dependency; if Lockheed Martin faces production issues or delays, it could impact the operational readiness of the F/A-18 fleet. Furthermore, the lack of transparency in pricing makes it harder for the government to ensure it is receiving fair market value. There's also a risk that technological advancements from other potential suppliers are not being considered, potentially leading to the adoption of less optimal or more expensive solutions in the long run.

How effective is the F/A-18 IRST system, and what is the impact of these components on its overall performance?

The Infrared Search and Track (IRST) system is a crucial passive sensor for the F/A-18 Super Hornet, designed to detect and track airborne threats using infrared signatures without emitting detectable signals. This passive capability enhances survivability and allows for early threat detection, complementing radar systems. The control processors and infrared receivers are fundamental components that directly influence the system's sensitivity, processing speed, accuracy, and overall effectiveness in identifying targets at various ranges and conditions. The quality and performance of these specific parts are therefore critical to the IRST system's ability to provide pilots with accurate and timely tactical information, directly impacting the aircraft's combat effectiveness and situational awareness.

What has been the historical spending trend for F/A-18 IRST system components or similar sensor systems procured by the Department of Defense?

Historical spending on F/A-18 IRST system components and similar advanced sensor systems by the Department of Defense has generally been substantial, reflecting the high cost of developing and procuring cutting-edge defense technology. Spending trends are often characterized by multi-year contracts for system upgrades and sustainment, with significant investments in research, development, and production. Sole-source awards for specialized components are not uncommon in this sector due to the proprietary nature of the technology and the limited number of qualified manufacturers. Analyzing past spending patterns for the F/A-18 program and comparable platforms like the F-35 or other naval aircraft would reveal a consistent demand for advanced sensor technology, often involving significant, long-term financial commitments.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0038321RN162

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1801 STATE RT 17 C, OWEGO, NY, 13827

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: $39,330,900

Exercised Options: $39,330,900

Current Obligation: $33,827,568

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $8,191,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001919G0029

IDV Type: BOA

Timeline