Lockheed Martin Awarded $356.7M for Night Vision Sensor Program

Contract Overview

Contract Amount: $356,653,858 ($356.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2016-01-01

End Date: 2021-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $177.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CL,CT::IGF CONTRACT W58RGZ-16-C-0008 IS HEREBY AWARDED AS AN UNDEFINITIZED CONTRACT FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR PERFORMANCE BASED LOGISTICS PROGRAM, INCLUSIVE OF OBSOLESCENCE MANAGEMENT, CRASH BATTLE DAMAGE SUPPORT/ CORPUS CHRISTI ARMY DEPOT SUPPORT, DEMAND DIAGNOSTICS AND CONTRACTOR SUPPLY SUPPORT ACTIVITIES BOTH THE CONTINENTAL UNITED STATES AND OUTSIDE THE CONTINENTAL UNITED STATES.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $356.7 million to LOCKHEED MARTIN CORPORATION for work described as: IGF::CL,CT::IGF CONTRACT W58RGZ-16-C-0008 IS HEREBY AWARDED AS AN UNDEFINITIZED CONTRACT FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR PERFORMANCE BASED LOGISTICS PROGRAM, INCLUSIVE OF OBSOLESCENCE MANAGEMENT, CRASH BATTLE DAMAGE SUPPORT/ CORP… Key points: 1. Contract awarded to Lockheed Martin Corporation for a critical night vision sensor program. 2. The contract value is substantial at $356.7 million, indicating significant program scope. 3. Performance-based logistics and obsolescence management are key components, suggesting a focus on long-term sustainment. 4. The sector is Aircraft Manufacturing, a high-value and technically complex industry.

Value Assessment

Rating: questionable

The contract value of $356.7 million for a 5-year period is substantial. Without specific performance metrics or benchmarks for similar night vision sensor programs, it is difficult to definitively assess its value. 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. 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.

Taxpayer Impact: The lack of competition for a contract of this magnitude raises concerns about potential overspending of taxpayer funds.

Public Impact

Enhances soldier capabilities through advanced night vision technology. Supports critical military operations requiring superior situational awareness. Ensures long-term availability and performance of essential defense equipment. Potential for cost overruns due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration (5 years) may not reflect evolving technology needs.
Lack of transparency on justification for sole-source award.

Positive Signals

Focus on performance-based logistics for sustainment.
Includes obsolescence management for long-term viability.
Supports critical defense modernization efforts.

Sector Analysis

The Aircraft Manufacturing sector is characterized by high R&D investment and complex supply chains. Spending in this sector is often driven by national security needs and technological advancements. Benchmarks for similar large-scale defense system contracts are typically in the hundreds of millions to billions of dollars.

Small Business Impact

The data indicates that this contract was not awarded to small businesses. There is no information provided on subcontracting opportunities for small businesses within this large prime contract.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective program execution. Transparency regarding the justification for not competing the contract is crucial for accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Long contract duration
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $356.7 million to LOCKHEED MARTIN CORPORATION. IGF::CL,CT::IGF CONTRACT W58RGZ-16-C-0008 IS HEREBY AWARDED AS AN UNDEFINITIZED CONTRACT FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR PERFORMANCE BASED LOGISTICS PROGRAM, INCLUSIVE OF OBSOLESCENCE MANAGEMENT, CRASH BATTLE DAMAGE SUPPORT/ CORPUS CHRISTI ARMY DEPOT SUPPORT, DEMAND DIAGNOSTICS AND CONTRACTOR SUPPLY SUPPORT ACTIVITIES BOTH THE CONTINENTAL UNITED STATES AND OUTSIDE THE CONTINENTAL UNITED STATES.

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 $356.7 million.

What is the period of performance?

Start: 2016-01-01. End: 2021-06-30.

What was the specific justification for awarding this contract on a sole-source basis, and were any alternatives explored?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Exploring alternatives would involve market research to determine if other qualified vendors could meet the requirements or if the requirements could be modified to allow for competition.

How does the performance-based logistics component ensure cost-effectiveness and optimal system performance over the contract's duration?

Performance-based logistics (PBL) aims to improve system readiness and reduce total ownership costs by shifting the focus from transactional parts sales to integrated support solutions. For this contract, PBL likely means Lockheed Martin is incentivized to maintain high levels of system availability and performance, rather than just supplying parts. This can lead to cost savings through optimized inventory, reduced repair times, and proactive maintenance, ultimately ensuring the night vision sensors remain effective and operational.

What are the potential risks associated with the obsolescence management aspect of this contract, and how are they being mitigated?

Obsolescence management is crucial for long-life defense systems, as components can become outdated or unavailable. Risks include the inability to source necessary parts, increased costs for redesigns, and potential performance degradation. Mitigation strategies likely involve proactive identification of at-risk components, long-term forecasting of component lifecycles, strategic sourcing, and potentially redesigning systems with more modern, available parts. The success of this mitigation depends on robust data analysis and supplier collaboration.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ16R0001

Offers Received: 1

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: $366,544,408

Exercised Options: $356,653,858

Current Obligation: $356,653,858

Actual Outlays: $43,225,449

Subaward Activity

Number of Subawards: 304

Total Subaward Amount: $72,340,081

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline