Lockheed Martin awarded $23.1M for night vision sensors, a sole-source contract for critical defense technology

Contract Overview

Contract Amount: $23,149,908 ($23.1M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2025-06-06

End Date: 2029-08-31

Contract Duration: 1,547 days

Daily Burn Rate: $15.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (MTADS/PNVS)

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (MTADS/PNVS) Key points: 1. The contract is a sole-source award, indicating limited competition for this specialized defense system. 2. The duration of the contract (over 4 years) suggests a long-term need for these advanced sensors. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. This award falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' highlighting its role in aviation systems. 5. The contract's value, while significant, needs to be benchmarked against similar advanced sensor procurements. 6. The absence of small business set-aside flags suggests this is a large prime contractor award.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging without comparable sole-source awards for the MTADS/PNVS system. The firm-fixed-price contract type provides some cost predictability. However, the lack of competition inherently limits the government's ability to ensure the best possible price. Further analysis would require access to historical pricing data for this specific system or its predecessors, and comparison to the cost of developing or acquiring similar advanced sensor technologies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Lockheed Martin Corporation, was solicited. This typically occurs when a system is proprietary, highly specialized, or the sole provider has unique capabilities. The lack of competition means the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure. The government relies on negotiation and justification for sole-source awards to mitigate this risk.

Public Impact

The primary beneficiaries are the U.S. Army aviation units requiring advanced night vision capabilities for enhanced situational awareness and mission effectiveness. The contract delivers modernized target acquisition designation sights and pilot night vision sensors, crucial for rotary-wing aircraft operations. The geographic impact is primarily within Florida, where the contract is being performed, potentially supporting local jobs and the defense industrial base in that state. The contract supports specialized manufacturing and engineering roles within Lockheed Martin and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification process can obscure true value.
Dependence on a single contractor for critical technology poses supply chain risks.
Contract duration and value require careful monitoring for potential cost overruns or scope creep.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award supports a critical defense capability for aviation units.
Long-term contract ensures sustained availability of essential equipment.
Contract performance is tied to specific delivery dates, indicating clear expectations.

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is a vital component of the aerospace and defense industry. This contract for advanced night vision sensors fits within the niche of specialized avionics and targeting systems. The market for such high-tech defense components is often characterized by high barriers to entry due to research and development costs, intellectual property, and stringent government qualification processes. Spending in this area is driven by the need for technological superiority in military operations. Comparable spending benchmarks would involve looking at other advanced sensor suite procurements for military aircraft, which can range from millions to hundreds of millions of dollars depending on complexity and quantity.

Small Business Impact

This contract does not appear to include a small business set-aside. The award to Lockheed Martin Corporation, a large prime contractor, suggests that the primary focus is on acquiring specialized technology rather than promoting small business participation directly through this prime contract. However, Lockheed Martin may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. The extent of this subcontracting would need further investigation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms and delivery schedules. Transparency is limited due to the sole-source nature of the award, with justifications typically being internal or classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Night Vision Systems
Avionics and Targeting Systems
Department of Defense Procurement
Lockheed Martin Contracts
Aircraft Component Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs
Dependency on single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to LOCKHEED MARTIN CORPORATION. MODERNIZED TARGET ACQUISITION DESIGNATION SIGHT/PILOT NIGHT VISION SENSOR (MTADS/PNVS)

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 $23.1 million.

What is the period of performance?

Start: 2025-06-06. End: 2029-08-31.

What is Lockheed Martin Corporation's track record with similar sole-source defense contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience in sole-source and competitive awards across various defense platforms. They have a long history of producing advanced systems, including targeting and sensor technologies for military aircraft. Their track record with sole-source contracts often stems from proprietary technologies or unique capabilities developed through prior government investment or internal R&D. While specific details of past sole-source awards are often sensitive, their consistent role as a prime contractor suggests a history of meeting contract requirements, though like any large contractor, they have also faced scrutiny over pricing and performance on specific programs. Analyzing their past performance on similar sole-source awards would require access to detailed contract databases and potentially program-specific reviews.

How does the $23.1 million value compare to similar night vision sensor procurements?

Benchmarking the $23.1 million value of this MTADS/PNVS contract against similar procurements is challenging due to its sole-source nature and specific system designation. However, advanced sensor suites for military aircraft can vary significantly in cost. For instance, other integrated targeting pods or advanced sensor systems for helicopters or fixed-wing aircraft have historically ranged from tens of millions to over a hundred million dollars, depending on the technology's sophistication, quantity, and the level of integration. Given that this is for a specific modernized system (MTADS/PNVS), the $23.1 million figure over approximately four years appears to be within a reasonable range for specialized, high-technology defense components, assuming it covers development, testing, and initial production/delivery phases. A more precise comparison would require identifying contracts for identical or highly analogous systems.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract are centered around cost and competition. Without competitive bidding, there is a heightened risk that the government may not be achieving the best possible price for the MTADS/PNVS system. The lack of alternative suppliers also creates a dependency on Lockheed Martin, posing potential supply chain risks if the contractor faces production issues, financial instability, or decides to discontinue the product line. Furthermore, sole-source awards can sometimes lack the transparency of competitive processes, making it harder to assess the true value for money. There's also a risk of scope creep or cost overruns if not managed diligently, although the firm-fixed-price structure aims to mitigate this.

How effective is the firm-fixed-price contract type in managing costs for this specialized equipment?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for specialized equipment, especially when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor assumes most of the risk for cost overruns, and the government pays a set price. This provides budget certainty and incentivizes the contractor to control costs efficiently. For the MTADS/PNVS system, this structure aims to prevent unexpected increases in the acquisition cost. However, the effectiveness can be diminished in sole-source situations if the initial baseline price was not rigorously negotiated or if unforeseen technical challenges arise that necessitate contract modifications, which could still impact the overall cost to the government.

What are the historical spending patterns for MTADS/PNVS or similar systems?

Historical spending patterns for the MTADS/PNVS system itself are not publicly detailed in this data snippet. However, the U.S. Army has consistently invested in advanced targeting and night vision systems for its aviation platforms for decades. Programs like the Apache helicopter's targeting systems (including previous iterations of MTADS/PNVS) and other sensor suites for reconnaissance and attack aircraft represent significant, ongoing expenditures. These investments are driven by the evolving nature of warfare and the need for superior situational awareness and precision targeting capabilities. Spending on such advanced systems typically occurs in multi-year increments, reflecting the long development, production, and sustainment cycles of military hardware. The total historical spending on this category of equipment likely runs into billions of dollars across various platforms and programs.

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: $23,149,908

Exercised Options: $23,149,908

Current Obligation: $23,149,908

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