DoD awards $957M for Modernized Target Acquisition Designation Sight/Pilot Night Vision System (MTADS/PNVS) to Lockheed Martin
Contract Overview
Contract Amount: $956,764,301 ($956.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-06
End Date: 2031-07-31
Contract Duration: 2,246 days
Daily Burn Rate: $426.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GEN III MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SYSTEM (MTADS/PNVS), INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) 2
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $956.8 million to LOCKHEED MARTIN CORPORATION for work described as: GEN III MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SYSTEM (MTADS/PNVS), INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) 2 Key points: 1. This IDIQ contract for advanced night vision systems represents a significant investment in aviation modernization. 2. Lockheed Martin is the sole provider, raising concerns about competition and potential price inflation. 3. The contract's long duration and firm fixed-price structure aim to control costs, but oversight is crucial. 4. The sector is characterized by high technological barriers and limited suppliers, making sole-source awards common.
Value Assessment
Rating: questionable
The total award amount of $956.76M over 6 years suggests a substantial investment. Benchmarking against similar advanced optics contracts is difficult due to the specialized nature of MTADS/PNVS, but the lack of competition raises concerns about achieving optimal value.
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 compared to a competitive process.
Taxpayer Impact: The absence of competition for this critical system may result in taxpayers paying a premium for the MTADS/PNVS.
Public Impact
Enhances pilot situational awareness and target acquisition capabilities for Army aviation. Supports ongoing modernization efforts for critical military aircraft platforms. Ensures continued availability of advanced night vision technology for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost overruns due to lack of competitive pressure.
- Long contract duration may not reflect evolving technology needs.
Positive Signals
- Addresses critical operational needs for aviation units.
- Firm fixed-price contract provides cost certainty.
- Long-term availability of essential equipment.
Sector Analysis
The defense sector, particularly aerospace and defense electronics, often involves complex, high-value contracts. Spending benchmarks for specialized systems like night vision are difficult to establish due to proprietary technology and limited suppliers, making competitive analysis challenging.
Small Business Impact
There is no indication of small business participation in this specific contract award. The nature of advanced defense systems often favors large, established prime contractors.
Oversight & Accountability
The Department of the Army is responsible for oversight. Given the sole-source nature, robust contract management and performance monitoring will be essential to ensure value and prevent cost creep.
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 price escalation
- Long contract duration
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 $956.8 million to LOCKHEED MARTIN CORPORATION. GEN III MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SYSTEM (MTADS/PNVS), INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) 2
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 $956.8 million.
What is the period of performance?
Start: 2025-06-06. End: 2031-07-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single vendor. The Department of Defense should have documented this justification. To ensure fair pricing, mechanisms like cost realism analyses, independent government cost estimates, and negotiation strategies are employed, though their effectiveness is diminished without competitive pressure.
How will the government mitigate the risks associated with a sole-source contract regarding potential cost overruns?
Mitigation strategies for sole-source contracts include rigorous contract surveillance, detailed performance metrics, and value engineering initiatives. The government may also negotiate specific cost-reduction targets or incentive clauses. Regular reviews of contractor performance and cost submissions are crucial to identify and address potential overruns early.
What is the long-term strategy for ensuring continued technological advancement and competition in this market segment?
The government's long-term strategy might involve fostering dual-source strategies where feasible, investing in research and development to create alternative solutions, or breaking down future requirements into smaller, more competitive packages. Periodic market research and engagement with potential new entrants can also stimulate future competition.
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: $956,764,301
Exercised Options: $956,764,301
Current Obligation: $956,764,301
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: 2025-06-06
Current End Date: 2031-07-31
Potential End Date: 2031-07-31 00:00:00
Last Modified: 2025-12-15
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)