DoD Awards Lockheed Martin $12M for Saudi Arabia Aviation Command Post-Production Support

Contract Overview

Contract Amount: $21,461,535 ($21.5M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2015-06-01

End Date: 2022-01-31

Contract Duration: 2,436 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: IGF::OT::IGF CONTRACT AWARD FOR SAUDI ARABIA ROYAL SAUDI LAND FORCES AVIATION COMMAND POST PRODUCTION SUPPORT SERVICES FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR PLATFORM. BASE EFFORT EXECUTED AND OBLIGATED IN THE AMOUNT OF $12,037,639.00.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::OT::IGF CONTRACT AWARD FOR SAUDI ARABIA ROYAL SAUDI LAND FORCES AVIATION COMMAND POST PRODUCTION SUPPORT SERVICES FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR PLATFORM. BASE EFFORT EXECUTED AND OBLIGATED IN THE AMOUNT OF $12,037,639.00. Key points: 1. This contract focuses on post-production support for a critical aviation targeting system. 2. The award is to Lockheed Martin, a major defense contractor. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Defense, specifically aircraft manufacturing and support.

Value Assessment

Rating: fair

The base effort obligated $12,037,639.00. Without comparable contract data for similar post-production support services for this specific platform, a precise pricing assessment is difficult. However, the fixed-price incentive structure suggests an attempt to control costs while incentivizing performance.

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 potentially leads to higher costs for the government compared to a competitive environment. The justification for sole-source is not provided in the data.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized support services.

Public Impact

Supports a foreign military sale, impacting international relations and defense cooperation. Ensures the operational readiness of advanced targeting systems for a key ally. Funds specialized technical support and maintenance for complex aerospace technology. The long duration (2436 days) suggests ongoing, critical support requirements.

Waste & Efficiency Indicators

Waste Risk Score: 88 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Long contract duration may indicate potential for cost overruns if not managed closely.
Foreign military sale specifics can be complex and opaque.

Positive Signals

Supports critical defense capabilities for an allied nation.
Award to a known, experienced contractor (Lockheed Martin).
Fixed-price incentive contract aims to balance cost and performance.

Sector Analysis

This award falls within the Defense sector, specifically related to aircraft manufacturing and support services. Spending in this area is often characterized by high R&D costs, long product lifecycles, and significant reliance on specialized contractors like Lockheed Martin.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). The nature of specialized post-production support for advanced military platforms often requires capabilities beyond the scope of most small businesses.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract. Given the sole-source nature and foreign military sale aspect, robust oversight is crucial to ensure fair pricing and effective delivery of services.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award.
Lack of transparency regarding justification for sole-sourcing.
Potential for inflated pricing due to limited competition.
Foreign military sale complexities.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to LOCKHEED MARTIN CORPORATION. IGF::OT::IGF CONTRACT AWARD FOR SAUDI ARABIA ROYAL SAUDI LAND FORCES AVIATION COMMAND POST PRODUCTION SUPPORT SERVICES FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR PLATFORM. BASE EFFORT EXECUTED AND OBLIGATED IN THE AMOUNT OF $12,037,639.00.

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 $21.5 million.

What is the period of performance?

Start: 2015-06-01. End: 2022-01-31.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The provided data does not include the justification for the sole-source award. Typically, such justifications might include proprietary technology, unique capabilities, or urgent needs. Without this information, it's difficult to assess the fairness of the price. The government should have conducted a price analysis based on historical data, cost estimates, or other available benchmarks to determine reasonableness.

How does the per-unit cost of this post-production support compare to similar services for other advanced targeting systems, either domestically or internationally?

A direct per-unit cost benchmark is not available in the provided data. Comparing post-production support costs is challenging due to the unique nature of each platform, the specific services included (e.g., maintenance, upgrades, training), and varying contract structures. A comprehensive analysis would require access to detailed cost breakdowns and data from comparable contracts.

What is the long-term strategy for ensuring the continued availability and affordability of support for this platform, especially considering the sole-source nature of the current award?

The long-term strategy is unclear from this award alone. Given the sole-source award, the government should explore options to foster future competition, perhaps by developing alternative support providers or negotiating more favorable terms for follow-on contracts. Investing in organic sustainment capabilities or seeking technology transfer could also mitigate long-term reliance and cost.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ13R0343

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $29,922,419

Exercised Options: $21,461,535

Current Obligation: $21,461,535

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $1,548,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline