DoD awards $12.9M for Apache M-TADS/PNVS support to Lockheed Martin, a sole-source contract
Contract Overview
Contract Amount: $12,911,092 ($12.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-01
End Date: 2026-06-30
Contract Duration: 2,006 days
Daily Burn Rate: $6.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROYAL NETHERLANDS AIR FORCE POST PRODUCTION SUPPORT SERVICES(PPSS) FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS, FOR THE APACHE ATTACK HELICOPTER (AH 64D/E)
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $12.9 million to LOCKHEED MARTIN CORPORATION for work described as: ROYAL NETHERLANDS AIR FORCE POST PRODUCTION SUPPORT SERVICES(PPSS) FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS, FOR THE APACHE ATTACK HELICOPTER (AH 64D/E) Key points: 1. Contract awarded to incumbent, Lockheed Martin, for specialized Apache helicopter targeting systems. 2. Sole-source award raises concerns about price competition and potential overspending. 3. Long-term contract (2021-2026) suggests critical, ongoing need for system support. 4. Engineering services sector, with high barriers to entry, often sees limited competition.
Value Assessment
Rating: questionable
The contract value of $12.9M for post-production support is difficult to assess without specific unit costs or comparison data. However, the sole-source nature raises concerns about whether this price represents fair market value compared to what might be achieved through competition.
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 lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition on this significant contract could lead to taxpayers paying a premium for essential support services.
Public Impact
Ensures continued operational readiness of the Apache attack helicopter fleet. Supports advanced targeting and night vision capabilities critical for air support missions. Potential for higher costs due to lack of competitive bidding impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 64 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Essential support for critical defense systems
- Long-term contract ensures stability
Sector Analysis
This contract falls under Engineering Services, a sector often characterized by specialized knowledge and high barriers to entry. Defense contracts within this sector can be substantial, and competition can be limited for highly technical or proprietary systems.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award, which is common for sole-source contracts involving highly specialized defense systems.
Oversight & Accountability
While the contract is for essential support, the sole-source nature warrants scrutiny. Further oversight may be needed to ensure cost reasonableness and explore future competitive opportunities for similar services.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost creep over the contract duration.
- Reliance on a single contractor for critical system support.
- Lack of transparency in pricing due to non-competitive nature.
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to LOCKHEED MARTIN CORPORATION. ROYAL NETHERLANDS AIR FORCE POST PRODUCTION SUPPORT SERVICES(PPSS) FOR THE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS, FOR THE APACHE ATTACK HELICOPTER (AH 64D/E)
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 $12.9 million.
What is the period of performance?
Start: 2021-01-01. End: 2026-06-30.
What is the breakdown of costs for labor, parts, and overhead within this contract?
A detailed cost breakdown is crucial for assessing the value of this sole-source contract. Understanding the allocation between labor, specific parts, and overhead would allow for a more granular analysis of pricing and identify potential areas for cost savings or negotiation in future contracts.
Are there any plans or opportunities to introduce competition for future support phases of the M-TADS/PNVS system?
Given the long-term nature of the Apache helicopter program, exploring future competition for M-TADS/PNVS support is vital. This could involve breaking down the support into smaller, more competitive packages or encouraging alternative providers to develop capabilities, thereby driving down costs and fostering innovation.
How does the performance of the M-TADS/PNVS system, supported by this contract, compare to similar systems in other allied air forces?
Benchmarking the performance and cost-effectiveness of the M-TADS/PNVS system against similar technologies used by allied air forces is important for validating its value. Such comparisons can highlight areas of excellence or identify potential deficiencies and cost inefficiencies that warrant further investigation and potential improvements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $12,911,092
Exercised Options: $12,911,092
Current Obligation: $12,911,092
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $655,492
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J19D0006
IDV Type: IDC
Timeline
Start Date: 2021-01-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-12-16
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)