DoD Awards Lockheed Martin $183M for Night Vision Sensors to Australia, Undermining Competition
Contract Overview
Contract Amount: $182,951,926 ($183.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-12-14
End Date: 2027-11-30
Contract Duration: 1,812 days
Daily Burn Rate: $101.0K/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 - AUSTRALIA
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $183.0 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS - AUSTRALIA Key points: 1. Significant contract value for specialized defense equipment. 2. Sole-source award to Lockheed Martin raises concerns about price discovery. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on advanced aviation technology within the defense sector.
Value Assessment
Rating: questionable
The contract value of $182.9 million for M-TADS/PNVS systems is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced sensor systems.
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 for the government and taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical night vision systems.
Public Impact
Enhances Australian military's night combat capabilities. Supports advanced aerospace technology development. Potential for follow-on procurements impacting future budgets. Highlights reliance on a single prime contractor for critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Advanced technology acquisition
- Supports allied defense capabilities
Sector Analysis
This contract falls within the defense sector, specifically related to aircraft parts and auxiliary equipment. Spending benchmarks for similar sole-source, high-value defense systems are often elevated due to specialized nature and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the prime contractor and the nature of the product suggest large-scale manufacturing capabilities.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent cost overruns. The Department of the Army's procurement process for this significant award warrants scrutiny.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in justification.
- Dependency on a single contractor.
- High dollar value of the contract.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $183.0 million to LOCKHEED MARTIN CORPORATION. MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS - AUSTRALIA
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 $183.0 million.
What is the period of performance?
Start: 2022-12-14. End: 2027-11-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single vendor. To ensure fair pricing, the Department of Defense should conduct thorough cost analyses, benchmark against similar systems if possible, and negotiate aggressively. Transparency in the justification process is key for accountability.
What are the long-term risks associated with relying on a single supplier for critical defense technology like M-TADS/PNVS?
Long-term reliance on a single supplier creates significant risks, including potential price escalation, supply chain vulnerabilities, and a lack of innovation due to suppressed competition. It can also lead to vendor lock-in, making it difficult and costly to switch providers or integrate alternative technologies in the future.
How does this contract contribute to the overall effectiveness and readiness of allied defense forces, and is the cost justified?
The M-TADS/PNVS system significantly enhances the effectiveness and readiness of allied forces by providing superior night vision capabilities. While the cost is substantial, its justification hinges on the critical nature of the technology for mission success and the perceived strategic value of equipping allied forces with such advanced systems.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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, 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: $277,417,422
Exercised Options: $182,951,926
Current Obligation: $182,951,926
Subaward Activity
Number of Subawards: 237
Total Subaward Amount: $41,512,371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ23D0011
IDV Type: IDC
Timeline
Start Date: 2022-12-14
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2026-01-07
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