DoD Awards $163.6M for Apache Helicopter Night Vision Systems to Lockheed Martin
Contract Overview
Contract Amount: $163,570,909 ($163.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-06-30
End Date: 2023-08-31
Contract Duration: 1,523 days
Daily Burn Rate: $107.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS, SUBCOMPONENT PRODUCTION, AND TECHNICAL SERVICES IN SUPPORT OF APACHE ATTACK HELICOPTER.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $163.6 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS, SUBCOMPONENT PRODUCTION, AND TECHNICAL SERVICES IN SUPPORT OF APACHE ATTACK HELICOPTER. Key points: 1. Significant investment in critical Apache helicopter targeting systems. 2. Sole-source award to Lockheed Martin raises questions about price discovery. 3. Long-term contract duration (1523 days) suggests ongoing need. 4. Focus on night vision technology highlights modernization efforts.
Value Assessment
Rating: fair
The contract value of $163.6 million for M-TADS/PNVS systems and services appears substantial. Without specific per-unit cost data or benchmarks for similar advanced targeting systems, a precise value assessment is difficult. The firm-fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits competitive pressure, potentially impacting price discovery and leading to higher costs for taxpayers compared to a competed procurement.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures continued operational readiness for the Apache attack helicopter fleet. Supports advanced targeting capabilities crucial for military effectiveness. Investment in specialized defense technology. Potential for job creation within the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Supports critical defense systems
- Firm-fixed-price contract
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending on advanced targeting and sensor systems is common for maintaining the technological edge of military aviation platforms.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award to a large prime contractor.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight would typically involve program management offices ensuring delivery and performance align with contract terms.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may mask inefficiencies.
- Lack of transparency in price justification.
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.6 million to LOCKHEED MARTIN CORPORATION. MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS, SUBCOMPONENT PRODUCTION, AND TECHNICAL SERVICES IN SUPPORT OF APACHE ATTACK HELICOPTER.
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 Army).
What is the total obligated amount?
The obligated amount is $163.6 million.
What is the period of performance?
Start: 2019-06-30. End: 2023-08-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of viable alternatives. To ensure fair and reasonable pricing, the procuring agency would likely conduct a price analysis based on historical data, cost proposals, and market research, even without direct competition.
How does the cost of these M-TADS/PNVS systems compare to similar advanced targeting systems on other platforms or from competitors?
Benchmarking the cost of these M-TADS/PNVS systems against similar advanced targeting systems is challenging without access to detailed cost breakdowns and comparative data from other platforms. The sole-source nature of this award further complicates direct cost comparisons, as competitive market forces are absent.
What is the long-term strategy for acquiring these systems, and will future procurements be competed?
The long-term strategy for acquiring these systems is not detailed in the provided data. Future procurements may depend on technological advancements, the availability of alternative solutions, and evolving defense requirements. A review of the necessity for continued sole-source awards versus exploring competitive options would be prudent.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: ENGINE ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $163,570,909
Exercised Options: $163,570,909
Current Obligation: $163,570,909
Subaward Activity
Number of Subawards: 277
Total Subaward Amount: $69,709,547
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J17D0043
IDV Type: IDC
Timeline
Start Date: 2019-06-30
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 12:08:00
Last Modified: 2023-02-21
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