DoD awards $7.8M for Apache helicopter M-TADS/PNVS support to Lockheed Martin

Contract Overview

Contract Amount: $7,807,663 ($7.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2026-06-30

Contract Duration: 1,735 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KUWAIT 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 $7.8 million to LOCKHEED MARTIN CORPORATION for work described as: KUWAIT 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 provider, Lockheed Martin, for critical Apache helicopter systems. 2. High value for specialized engineering services, indicating complex technology and maintenance needs. 3. Potential risk associated with sole-source procurement for essential defense equipment. 4. Spending falls within the Engineering Services sector, supporting advanced military platforms.

Value Assessment

Rating: good

The contract value of $7.8M for post-production support services appears reasonable given the specialized nature of the M-TADS/PNVS systems for the Apache helicopter. Benchmarking against similar complex defense system support contracts would provide further context, but the price seems aligned with high-tech military sustainment.

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 approach may be justified by proprietary technology or existing infrastructure, but it limits price discovery and competitive pressure, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this sole-source award means taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process.

Public Impact

Ensures continued operational readiness of the Apache attack helicopter fleet. Supports advanced targeting and night vision capabilities crucial for air support missions. Maintains critical technological advantage for U.S. military operations. Potential for cost overruns due to sole-source nature of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Lack of clear performance metrics in provided data
Long contract duration may not reflect evolving needs

Positive Signals

Supports critical defense platform
Awarded to established defense contractor
Fixed-price contract type can control costs

Sector Analysis

This contract falls under Engineering Services, specifically supporting advanced avionics and targeting systems for military aircraft. Spending in this sector is often characterized by high R&D costs, specialized expertise, and long product lifecycles, with significant government investment in maintaining technological superiority.

Small Business Impact

The provided data does not indicate any subcontracting opportunities for small businesses on this contract. As a sole-source award to a large prime contractor, it is less likely to involve significant small business participation unless specifically mandated.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for oversight of this contract. The lack of competition raises questions about the effectiveness of oversight in ensuring fair pricing and value for taxpayer money.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competitive pricing.
Potential for cost creep without robust oversight.
Reliance on a single contractor for critical systems.
Long contract duration may not be cost-effective.
Lack of transparency in justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to LOCKHEED MARTIN CORPORATION. KUWAIT 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 $7.8 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-06-30.

What is the justification for the sole-source award, and has a thorough market research been conducted to ensure no other capable vendors exist?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or essential system integration that only one contractor can provide. Agencies are required to conduct market research to validate these claims. Without access to the specific justification documentation, it's difficult to assess the thoroughness of the research, but the lack of competition warrants scrutiny to ensure it's not a missed opportunity for cost savings.

How does the per-unit cost of support services compare to previous contracts or industry benchmarks for similar systems?

Benchmarking the per-unit cost is crucial for assessing value, especially in sole-source procurements. Without specific unit breakdowns or access to comparable contract data, a direct comparison is challenging. However, the total contract value of $7.8M over approximately 5 years suggests a significant annual spend, highlighting the importance of detailed cost analysis against industry standards for advanced military hardware support.

What performance metrics are in place to ensure the effectiveness and efficiency of Lockheed Martin's post-production support services?

Effective oversight requires clear performance metrics (e.g., response times, system uptime, defect rates) tied to contract deliverables. While the contract type is fixed-price, ensuring the quality and timeliness of support is paramount for maintaining the operational readiness of the Apache fleet. The absence of specific performance metrics in the provided data makes it difficult to evaluate the effectiveness of the oversight and the contractor's performance.

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: $7,807,663

Exercised Options: $7,807,663

Current Obligation: $7,807,663

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $167,931

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