Lockheed Martin awarded $121.6M for Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor Systems

Contract Overview

Contract Amount: $121,567,721 ($121.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2022-08-31

End Date: 2026-03-31

Contract Duration: 1,308 days

Daily Burn Rate: $92.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENOR (M-TADS/PNVS) SYSTEMS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $121.6 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENOR (M-TADS/PNVS) SYSTEMS Key points: 1. Contract awarded to a single, established provider, raising questions about competitive pricing. 2. The contract duration extends over three years, indicating a significant, long-term need. 3. Focus on advanced night vision technology suggests a critical capability for military operations. 4. The absence of a competitive bidding process warrants scrutiny of the awarded price. 5. This acquisition supports the Army's modernization efforts for aviation platforms. 6. The contract's value is substantial, reflecting the complexity and importance of the systems.

Value Assessment

Rating: questionable

The awarded amount of $121.6 million for the M-TADS/PNVS systems appears substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The pricing structure is firm fixed price, which shifts some risk to the contractor but does not inherently guarantee optimal pricing. Further analysis would require comparing this award to historical pricing for similar systems or to independent cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder was considered. This approach bypasses the typical competitive process where multiple companies vie for the contract. While sole-source awards can be justified for unique capabilities or existing systems, they limit price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without competing bids, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Army aviation units requiring advanced targeting and night vision capabilities. The contract will deliver modernized M-TADS/PNVS systems, enhancing situational awareness and combat effectiveness. The geographic impact is primarily within the operational theaters where Army aviation assets are deployed. Workforce implications include continued employment for specialized engineers and manufacturing personnel at Lockheed Martin.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs.
Lack of transparency in the procurement process due to non-competitive nature.
Reliance on a single supplier could create long-term dependency and reduce future negotiation leverage.

Positive Signals

Acquisition of critical, advanced technology for national defense.
Firm fixed price contract shifts some performance and cost risk to the contractor.
Supports ongoing modernization efforts within the U.S. Army aviation branch.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government procurement. Contracts for advanced sensor systems like the M-TADS/PNVS are crucial for maintaining military superiority. The market for such specialized components is often dominated by a few large, established prime contractors like Lockheed Martin, making sole-source or limited competition awards more common for highly integrated systems.

Small Business Impact

This contract does not appear to include specific small business set-aside provisions. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely limited unless Lockheed Martin engages them as subcontractors. The subcontracting plan, if any, would determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The firm fixed price nature provides some cost control, but the sole-source award necessitates careful monitoring of performance and delivery schedules. Transparency may be limited due to the non-competitive nature, but contract modifications and performance reports would be subject to standard government review.

Related Government Programs

Apache Helicopter Modernization Programs
Night Vision and Electronic Warfare Systems
Aviation Sensor Procurement
Department of the Army Aviation Systems

Risk Flags

Sole-source procurement
Lack of competitive pricing
High contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $121.6 million to LOCKHEED MARTIN CORPORATION. MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENOR (M-TADS/PNVS) SYSTEMS

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 $121.6 million.

What is the period of performance?

Start: 2022-08-31. End: 2026-03-31.

What is the historical spending trend for M-TADS/PNVS systems under Lockheed Martin?

Historical spending data for the M-TADS/PNVS systems prior to this award would provide crucial context. Analyzing previous contracts, including their values, durations, and any competitive history, can reveal patterns in pricing and procurement. If previous awards were also sole-source, it reinforces the current approach. Conversely, if there was prior competition, the shift to a sole-source award for this period warrants deeper investigation into the reasons and potential cost implications for the government. Understanding the cumulative investment over time is essential for assessing the long-term financial commitment to this technology.

How does the awarded price compare to industry benchmarks for similar night vision sensor systems?

Benchmarking the awarded price against industry standards for comparable night vision sensor systems is critical for assessing value. This involves identifying systems with similar technological capabilities, performance specifications, and intended use cases from other manufacturers or previous government procurements. Without a competitive bid, the government lacks the market's direct price discovery mechanism. Therefore, relying on independent cost research, historical data from similar, competed contracts, or expert analysis becomes paramount. If the $121.6 million award significantly exceeds benchmarks for comparable systems, it raises concerns about cost-effectiveness and the potential for overpayment.

What are the specific performance improvements or new capabilities offered by this modernized system?

The modernization of the M-TADS/PNVS systems likely entails significant performance enhancements and potentially new capabilities. These could include improved resolution, extended range, enhanced target identification in adverse weather or low-light conditions, reduced size, weight, and power (SWaP) requirements, or better integration with other aircraft systems. Understanding these specific improvements is essential to justify the contract's value and cost. The government's justification for a sole-source award often hinges on the unique or highly specialized nature of the upgrades, implying that only the incumbent contractor can deliver them effectively or within the required timeframe.

What is Lockheed Martin's track record with delivering complex defense systems on time and within budget?

Lockheed Martin is a major defense contractor with extensive experience in delivering complex systems. Their track record on past programs, including the M-TADS/PNVS itself, provides insight into their reliability. Evaluating their performance on previous contracts – specifically regarding adherence to schedules, cost performance (especially on fixed-price contracts), and meeting technical specifications – is crucial. A history of successful, on-time, and within-budget deliveries would lend confidence to this current award. Conversely, a pattern of delays or cost overruns on similar programs might indicate potential risks that need careful management and oversight for this contract.

Are there any known risks associated with the technology or the contractor for this specific system?

Assessing risks associated with the M-TADS/PNVS technology and Lockheed Martin is vital. Technological risks could include the maturity of the modernized components, potential integration challenges with existing platforms, or unforeseen performance issues. Contractor-related risks might involve supply chain vulnerabilities, labor disputes, or the potential for the sole-source situation to lead to complacency or reduced responsiveness. Given the sole-source nature, the government must diligently assess Lockheed Martin's capacity, financial stability, and commitment to delivering the system as specified. Proactive risk mitigation strategies should be in place to address any identified concerns.

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: $121,567,721

Exercised Options: $121,567,721

Current Obligation: $121,567,721

Subaward Activity

Number of Subawards: 142

Total Subaward Amount: $24,122,894

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