Army awards $22.6M for M-TADS/PNVS night vision sensors to Lockheed Martin

Contract Overview

Contract Amount: $22,575,388 ($22.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-06-30

End Date: 2026-12-31

Contract Duration: 2,010 days

Daily Burn Rate: $11.2K/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 MDSA KITS & SPARES QUANTITIES

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS MDSA KITS & SPARES QUANTITIES Key points: 1. This contract focuses on specialized night vision sensor systems for aircraft. 2. The sole awardee is Lockheed Martin Corporation, a major defense contractor. 3. Potential risks include reliance on a single supplier and long-term sustainment costs. 4. The sector is dominated by large defense manufacturers.

Value Assessment

Rating: fair

The award amount of $22.6M for M-TADS/PNVS systems and spares appears to be a specific delivery order. Without more detailed cost breakdowns or comparisons to similar systems, a precise value assessment is difficult. However, given the specialized nature of advanced targeting and night vision, costs can be significant.

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 price discovery and potentially leads to higher costs compared to a competitive environment. The justification for sole-source is likely based on proprietary technology or existing system integration.

Taxpayer Impact: Taxpayer funds are directed to a single contractor without competitive pressure, potentially increasing the overall cost of acquiring and sustaining these critical systems.

Public Impact

Enhances pilot situational awareness and targeting capabilities in low-light conditions. Supports critical military operations by providing advanced night vision technology. Ensures the continued operation and readiness of aircraft equipped with M-TADS/PNVS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for cost overruns in specialized defense systems
Long-term sustainment and upgrade costs not fully detailed

Positive Signals

Provides critical technology for military aviation
Awarded to a known and experienced defense contractor
Long-term contract duration suggests ongoing need

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aircraft components and advanced electronics. Spending in this area is typically high due to the complexity and critical nature of military hardware. Benchmarks for similar specialized sensor systems are often proprietary and vary widely.

Small Business Impact

There is no indication of small business participation in this specific contract award. The nature of advanced defense systems often involves large prime contractors who may subcontract, but direct awards to small businesses are uncommon for such specialized equipment.

Oversight & Accountability

The Department of the Army is the awarding agency. Oversight would typically involve contract management by the Army Contracting Command, ensuring delivery and adherence to terms. The sole-source nature may warrant additional scrutiny to ensure fair pricing and necessity.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competitive pricing
High cost of specialized defense technology
Potential for long-term sustainment costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to LOCKHEED MARTIN CORPORATION. MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS MDSA KITS & SPARES QUANTITIES

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 $22.6 million.

What is the period of performance?

Start: 2021-06-30. End: 2026-12-31.

What is the specific justification for the sole-source award, and has it been reviewed for potential competitive alternatives?

The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or essential system integration that only one contractor can provide. Agencies are required to document these justifications and often undergo internal review to ensure no viable competitive options exist. Without access to the specific justification document, it's difficult to assess its validity, but it's a key area for oversight to ensure taxpayer funds are used efficiently.

How does the per-unit cost of these M-TADS/PNVS systems compare to similar advanced targeting and night vision systems in the market?

Benchmarking the per-unit cost of highly specialized defense systems like M-TADS/PNVS is challenging due to proprietary technology, unique performance specifications, and the limited number of comparable systems. While a direct comparison is difficult, agencies often conduct market research and should have internal data to assess if the negotiated price is reasonable relative to the system's capabilities and the contractor's cost structure. The absence of competition inherently makes this assessment more reliant on the agency's internal analysis.

What is the long-term sustainment and upgrade strategy for these systems, and what are the projected costs beyond the current contract?

The current contract covers delivery orders through December 2026. A comprehensive long-term strategy for sustainment, maintenance, and future upgrades is crucial for managing the total ownership cost of advanced systems like M-TADS/PNVS. Agencies typically plan for these lifecycle costs, often through separate sustainment contracts or indefinite-delivery/indefinite-quantity (IDIQ) vehicles. Understanding these future costs is vital for accurate budgeting and assessing the overall value proposition of the technology.

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: $22,575,388

Exercised Options: $22,575,388

Current Obligation: $22,575,388

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $1,952,610

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