DoD awards $33.2M for EMATT Targets, with Lockheed Martin Sippican Inc. securing the contract

Contract Overview

Contract Amount: $33,190,908 ($33.2M)

Contractor: Lockheed Martin Sippican, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-03-24

End Date: 2018-09-20

Contract Duration: 2,737 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MK39 MOD 2 EMATT TARGETS

Place of Performance

Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to LOCKHEED MARTIN SIPPICAN, INC. for work described as: MK39 MOD 2 EMATT TARGETS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm fixed price, which shifts cost risk to the contractor. 3. Performance period spans over 7 years, indicating a long-term need for these targets. 4. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector. 5. The award value of $33.2 million over 7 years suggests a moderate annual spending level for this equipment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The firm fixed price structure is generally favorable for the government in managing costs, provided the initial pricing was competitive. The duration of the contract suggests a sustained need, but the absence of detailed cost breakdowns or comparisons makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust competitive environment at the time of award. The number of bidders is not specified, but the designation implies multiple interested parties participated, which is generally conducive to price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

The Department of Defense is the primary beneficiary, acquiring essential training and testing equipment. The services delivered involve the manufacturing and supply of EMATT (Expendable Mobile Aerial Target) targets. The contract's geographic impact is primarily linked to the contractor's location in New York. Workforce implications are likely concentrated within the specialized manufacturing sector related to defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value for money.
Limited transparency on the number of bidders and the competitive range achieved.
Long contract duration could lead to potential cost escalations if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm fixed price contract type transfers cost risk to the contractor.
Contractor is based in New York, potentially supporting regional employment.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a specialized area of defense manufacturing. Companies in this sector often produce high-value, technologically advanced equipment. The market size for such specialized defense components can be significant, driven by government procurement needs. This contract represents a specific procurement within that broader industry landscape.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions, nor is there information on subcontracting plans. Given the nature of the product and the prime contractor, it is possible that larger defense contractors are involved, but the direct impact on the small business ecosystem is not evident from the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices, potentially with involvement from the Defense Contract Management Agency (DCMA) given the contract's nature. Accountability measures are inherent in the firm fixed price contract type, requiring delivery of specified goods. Transparency is limited by the public availability of detailed contract performance data.

Related Government Programs

Defense Target Systems
Aerial Target Manufacturing
Naval Systems Manufacturing
Defense Instrumentation

Risk Flags

Long contract duration may increase exposure to market changes or technological obsolescence.
Lack of detailed performance data limits comprehensive value assessment.
Potential for supply chain disruptions in specialized manufacturing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to LOCKHEED MARTIN SIPPICAN, INC.. MK39 MOD 2 EMATT TARGETS

Who is the contractor on this award?

The obligated recipient is LOCKHEED MARTIN SIPPICAN, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $33.2 million.

What is the period of performance?

Start: 2011-03-24. End: 2018-09-20.

What is the historical spending trend for EMATT targets by the Department of Defense?

Analyzing historical spending trends for EMATT targets requires access to comprehensive procurement databases and specific line item data over multiple fiscal years. Without this granular data, it's difficult to establish a precise trend. However, the award of a $33.2 million contract over seven years suggests a consistent, albeit moderate, level of investment in this capability. Fluctuations in spending could be influenced by changes in training requirements, technological advancements in target systems, or shifts in overall defense budgets. A deeper dive into historical contract awards for similar target systems would be necessary to identify patterns of increase, decrease, or stability in DoD's procurement of EMATT targets.

How does the per-unit cost of these EMATT targets compare to similar systems or previous procurements?

Determining the per-unit cost requires knowing the total number of units procured under this contract, which is not provided in the summary data. The contract value is $33,190,908.49, and the duration is 2737 days (approximately 7.5 years). Without the quantity, a per-unit cost cannot be calculated. Furthermore, comparing this to similar systems or previous procurements is challenging without access to specific unit costs from those contracts. Factors such as technological sophistication, payload capabilities, and lifespan significantly influence the cost of aerial targets. A comprehensive analysis would involve obtaining unit cost data for comparable systems and adjusting for inflation and technological differences over time.

What is Lockheed Martin Sippican, Inc.'s track record with similar defense manufacturing contracts?

Lockheed Martin Sippican, Inc., as a subsidiary or division likely associated with the larger Lockheed Martin corporation, generally has a strong track record in defense manufacturing. Lockheed Martin is a major defense contractor with extensive experience in producing a wide array of aerospace and defense systems, including missiles, aircraft, and surveillance equipment. Sippican specifically has a history in areas like torpedoes and underwater systems, and potentially aerial targets. Their involvement in this EMATT target contract suggests they possess the necessary manufacturing capabilities and security clearances. However, a detailed review of their performance on specific, comparable contracts, including on-time delivery, quality adherence, and cost management, would be needed for a complete assessment.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key performance indicators (KPIs) for a contract like this typically revolve around the successful delivery of the EMATT targets according to specified requirements. These would likely include metrics such as on-time delivery rates, adherence to technical specifications (e.g., flight performance, radar cross-section, durability), reliability and failure rates during operation, and overall quality of the manufactured product. For a firm fixed price contract, meeting these technical and delivery milestones without exceeding the agreed-upon price is paramount. The government would likely have quality assurance surveillance plans (QASPs) in place to monitor these KPIs throughout the contract's performance period.

Are there any known risks associated with the technology or manufacturing process for these EMATT targets?

Risks associated with EMATT targets can stem from several areas. Technologically, the targets need to accurately simulate enemy threats, requiring sophisticated guidance, propulsion, and potentially electronic warfare capabilities. Obsolescence is a risk, as threat environments evolve rapidly. Manufacturing risks include ensuring consistent quality and reliability across a production run, managing complex supply chains for specialized components, and maintaining safety standards. Furthermore, the integration of these targets into training exercises requires compatibility with existing range infrastructure and control systems. The firm fixed price nature of the contract places the onus on the contractor to manage these risks effectively.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6660410R1904

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 7 BARNABAS RD, MARION, MA, 02738

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: $34,732,879

Exercised Options: $34,732,879

Current Obligation: $33,190,908

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline