DoD Awards $88M for M-TADS/PNVS Systems to Lockheed Martin, Serving Kuwait, Taiwan, and USG
Contract Overview
Contract Amount: $87,979,751 ($88.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-22
End Date: 2029-12-31
Contract Duration: 2,201 days
Daily Burn Rate: $40.0K/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 - KUWAIT, TAIWAN, USG.
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $88.0 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS - KUWAIT, TAIWAN, USG. Key points: 1. Significant award for advanced night vision systems, indicating critical defense needs. 2. Lockheed Martin is the sole provider, raising questions about competition and pricing. 3. Long contract duration (2029) suggests sustained demand and potential for future modifications. 4. Focus on aircraft parts highlights the importance of specialized components in military operations.
Value Assessment
Rating: questionable
The award amount of $87.98M for M-TADS/PNVS systems is substantial. Without specific unit details or historical pricing for similar systems, it's difficult to benchmark against other contracts. The sole-source nature raises concerns about whether this represents the best possible price.
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 taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these specialized night vision systems.
Public Impact
Enhances critical night vision capabilities for US military and allied nations. Supports advanced targeting and situational awareness for aviation platforms. Ensures continued supply of essential components for ongoing defense operations. Potential for technology transfer and interoperability with allied forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Long contract duration
- Lack of detailed cost breakdown
Positive Signals
- Critical defense technology
- Supports multiple end-users (USG, Taiwan, Kuwait)
- Firm fixed price contract type
Sector Analysis
This award falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is driven by modernization efforts and geopolitical demands, with significant investment in advanced sensor and targeting systems.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award notice, suggesting that subcontracting opportunities may be limited or not detailed here.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the awarding agency. Oversight will involve contract management to ensure delivery and adherence to the firm fixed price terms, especially given the sole-source nature.
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 cost overruns
- Long contract duration may lead to obsolescence
- Limited transparency on pricing justification
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 $88.0 million to LOCKHEED MARTIN CORPORATION. MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (M-TADS/PNVS) SYSTEMS - KUWAIT, TAIWAN, USG.
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 $88.0 million.
What is the period of performance?
Start: 2023-12-22. End: 2029-12-31.
What is the specific unit cost for the M-TADS/PNVS systems, and how does it compare to industry benchmarks for similar advanced sensor technology?
The provided data does not include specific unit costs for the M-TADS/PNVS systems, making a direct comparison to industry benchmarks impossible. Given the sole-source nature of the award, it is crucial for the DoD to conduct thorough price analysis to ensure the $87.98M represents fair and reasonable pricing, potentially through benchmarking against previous awards or similar systems if available through other channels.
What are the risks associated with a sole-source procurement for critical defense systems like M-TADS/PNVS, particularly regarding long-term cost escalation and technological obsolescence?
Sole-source procurement carries significant risks, including potential for inflated costs due to lack of competition and reduced incentive for the contractor to innovate aggressively. For long-term contracts, there's also a risk of technological obsolescence if the system isn't continuously updated. Effective oversight, robust negotiation, and clear performance metrics are essential to mitigate these risks.
How effective is the M-TADS/PNVS system in enhancing operational capabilities for the US military and its allies, and what is the projected return on investment?
The M-TADS/PNVS system is a critical component for modern aviation, providing advanced targeting and night vision capabilities that significantly enhance situational awareness and mission effectiveness in low-light and adverse conditions. While a precise ROI is difficult to quantify, its role in improving soldier safety and mission success suggests a high operational value, justifying investment in maintaining and upgrading these 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: $114,833,822
Exercised Options: $114,833,822
Current Obligation: $87,979,751
Subaward Activity
Number of Subawards: 87
Total Subaward Amount: $18,251,780
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: 2023-12-22
Current End Date: 2029-12-31
Potential End Date: 2029-12-31 12:12:00
Last Modified: 2025-08-26
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)