DoD awards $15.9M to Lockheed Martin for Apache M-TADS/PNVS sustainment in Florida
Contract Overview
Contract Amount: $15,880,495 ($15.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-27
End Date: 2027-04-30
Contract Duration: 1,676 days
Daily Burn Rate: $9.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: POST PRODUCTION SUPPORT SERVICES (PPSS)TO SUPPORT THE SUSTAINMENT PROGRAM FOR THE TAIWAN ARMY AH-64 APACHE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to LOCKHEED MARTIN CORPORATION for work described as: POST PRODUCTION SUPPORT SERVICES (PPSS)TO SUPPORT THE SUSTAINMENT PROGRAM FOR THE TAIWAN ARMY AH-64 APACHE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS Key points: 1. This contract focuses on post-production support for a critical defense system. 2. Lockheed Martin is the sole provider for this specialized sustainment. 3. Potential risks include vendor lock-in and limited price negotiation leverage. 4. The IT and Engineering Services sector sees significant defense spending.
Value Assessment
Rating: fair
The award amount of $15.9M for a 5-year sustainment contract appears reasonable given the specialized nature of the M-TADS/PNVS system. Benchmarking is difficult without specific service details, but it aligns with typical defense sustainment contracts for complex avionics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to Lockheed Martin's sole-source position as the original equipment manufacturer and sole provider of proprietary technical data for the M-TADS/PNVS system. This limits price discovery and competitive pressure.
Taxpayer Impact: Taxpayer funds are used for a sole-source contract, potentially at a higher cost than if competition were available. However, it ensures continued operational readiness of a key defense asset.
Public Impact
Ensures continued operational readiness of the AH-64 Apache attack helicopter's targeting system. Supports the U.S. Army's modernization and sustainment efforts for a critical aviation platform. Maintains a vital defense capability for national security interests. Provides specialized engineering and technical support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration (approx. 5 years).
- Potential for cost overruns without competitive pressure.
Positive Signals
- Supports critical defense system sustainment.
- Ensures operational readiness of Apache helicopters.
- Awarded to the OEM, likely ensuring technical expertise.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense aerospace systems. Defense spending in this area is substantial, focusing on maintaining and upgrading complex military hardware to ensure technological superiority and operational effectiveness.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve contract performance monitoring, milestone tracking, and financial reviews to ensure adherence to terms and conditions and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost creep
- Long-term dependency on OEM
- Limited transparency on pricing justification
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 $15.9 million to LOCKHEED MARTIN CORPORATION. POST PRODUCTION SUPPORT SERVICES (PPSS)TO SUPPORT THE SUSTAINMENT PROGRAM FOR THE TAIWAN ARMY AH-64 APACHE MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (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 $15.9 million.
What is the period of performance?
Start: 2022-09-27. End: 2027-04-30.
What is the basis for the sole-source justification, and what steps are being taken to ensure fair pricing?
The sole-source justification likely stems from Lockheed Martin's proprietary control over the M-TADS/PNVS system's design, manufacturing, and intellectual property. To ensure fair pricing, the Army should employ robust negotiation strategies, independent cost analysis, and potentially seek alternative technical solutions or data rights in future procurements.
What are the specific performance metrics and deliverables for this sustainment contract?
The provided data does not detail specific performance metrics or deliverables. Typically, sustainment contracts include metrics related to response times for technical support, availability of spare parts, repair turnaround times, and adherence to maintenance schedules. These would be outlined in the contract's statement of work.
How does this contract contribute to the overall readiness and modernization goals for the Apache fleet?
This contract is crucial for maintaining the operational readiness of the AH-64 Apache fleet by ensuring the M-TADS/PNVS systems remain functional and supported. It directly contributes to sustainment goals, allowing the Army to keep its existing platforms effective while potentially integrating future upgrades or modifications.
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: $15,880,495
Exercised Options: $15,880,495
Current Obligation: $15,880,495
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $646,526
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: 2022-09-27
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 12:04:00
Last Modified: 2025-12-19
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