Army Awards $21.6M for Night Vision System Refurbishment to Lockheed Martin
Contract Overview
Contract Amount: $21,650,623 ($21.7M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-08-31
End Date: 2027-08-31
Contract Duration: 1,461 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF REFURBISHMENT EFFORTS ON CURRENT TARGET ACQUISITION DESIGNATION SIGHT / PILOT NIGHT VISION SYSTEMS
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $21.7 million to LOCKHEED MARTIN CORPORATION for work described as: PURCHASE OF REFURBISHMENT EFFORTS ON CURRENT TARGET ACQUISITION DESIGNATION SIGHT / PILOT NIGHT VISION SYSTEMS Key points: 1. Significant investment in critical night vision technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long-term contract (4 years) suggests ongoing need. 4. Focus on refurbishment indicates potential for cost savings over new procurement.
Value Assessment
Rating: fair
The $21.6M contract for refurbishment is substantial. Benchmarking against similar refurbishment contracts for advanced optics is difficult without more specific details on the scope of work. However, the firm-fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This approach limits price discovery and may result in higher costs compared to a competitive bidding process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these refurbishment services.
Public Impact
Enhances soldier capabilities in low-light conditions. Supports ongoing modernization of military equipment. Ensures operational readiness for critical surveillance and targeting missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of detailed cost breakdown.
- Long contract duration.
Positive Signals
- Supports critical defense technology.
- Firm-fixed-price contract provides cost control.
Sector Analysis
This contract falls within the defense sector, specifically related to specialized equipment manufacturing. Spending on advanced optics and night vision systems is a consistent area of investment for military branches.
Small Business Impact
The awardee, Lockheed Martin Corporation, is a large defense contractor. There is no indication in the provided data that small businesses were involved in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. Further oversight may be needed to confirm the necessity of avoiding full and open competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency on refurbishment scope
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to LOCKHEED MARTIN CORPORATION. PURCHASE OF REFURBISHMENT EFFORTS ON CURRENT TARGET ACQUISITION DESIGNATION SIGHT / PILOT NIGHT VISION 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 $21.7 million.
What is the period of performance?
Start: 2023-08-31. End: 2027-08-31.
What is the specific scope of refurbishment for the night vision systems, and how does it compare to the original system's capabilities?
The provided data lacks specifics on the refurbishment scope. Understanding the exact work, such as component replacement, upgrades, or recalibration, is crucial. Comparing the refurbished capabilities to the original system helps assess if the investment significantly enhances performance or merely maintains existing functionality, impacting the overall value proposition.
What justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is critical for understanding potential risks to fair pricing. Agencies typically cite reasons like unique capabilities, urgent needs, or lack of viable alternatives. Investigating the rationale and exploring whether any form of limited competition or market research was conducted is essential to assess if taxpayer funds were used efficiently.
How will the effectiveness of the refurbished night vision systems be measured post-delivery to ensure they meet performance requirements?
Measuring effectiveness is key to validating the investment. This involves defining clear performance metrics and testing protocols for the refurbished systems. Understanding the government's plan for acceptance testing and post-delivery evaluation ensures that the $21.6 million expenditure translates into tangible improvements in operational capability and soldier safety.
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: $27,939,549
Exercised Options: $27,939,549
Current Obligation: $21,650,623
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $627,089
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: 2023-08-31
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 12:08:00
Last Modified: 2025-08-28
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