DoD awards $11.8M for VTESS BASE KITS, with Lockheed Martin securing the contract

Contract Overview

Contract Amount: $11,781,787 ($11.8M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2023-07-31

End Date: 2026-09-30

Contract Duration: 1,157 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: VTESS BASE KITS FOR PEO STRI AND PM STRYKER.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to LOCKHEED MARTIN CORPORATION for work described as: VTESS BASE KITS FOR PEO STRI AND PM STRYKER. Key points: 1. The contract value of $11.8 million appears reasonable for specialized military equipment, but requires benchmarking against similar systems. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process that could benefit price discovery. 3. The contract duration of nearly three years indicates a sustained need for these kits. 4. The award to Lockheed Martin, a major defense contractor, places this within the context of established industry players. 5. Performance risk appears moderate given the fixed-price nature of the contract, shifting some risk to the contractor. 6. The absence of small business set-aside suggests larger prime contractors are expected to fulfill the requirement.

Value Assessment

Rating: fair

The contract value of $11.8 million for VTESS BASE KITS needs further context to assess value for money. Without specific details on the kits' capabilities and quantities, direct comparison to similar contracts is challenging. However, the firm fixed-price structure suggests that the government has negotiated a ceiling price, which can be advantageous. Benchmarking against the cost of comparable systems or previous iterations of VTESS kits would provide a clearer picture of whether this represents a competitive price point.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, allowing multiple companies to vie for the contract. The number of bidders is not specified, but the use of full and open competition suggests that the Army sought to maximize the pool of potential offerors to achieve the best value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the U.S. Army's Program Executive Office (PEO) Stri and Program Manager (PM) Stryker, who will receive the VTESS BASE KITS. These kits are likely intended to enhance the capabilities or operational readiness of Stryker vehicles. The contract is being executed in California, suggesting a potential impact on the local economy and workforce in that region. The delivery order structure implies a phased delivery of these kits over the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the VTESS BASE KITS' technical specifications and performance metrics makes it difficult to fully assess value.
The contract's duration and value, while not excessively large, warrant monitoring for potential scope creep or cost overruns, despite the fixed-price nature.
Reliance on a single large contractor (Lockheed Martin) for this specific requirement could limit future competition or innovation if not managed carefully.

Positive Signals

The use of full and open competition is a positive signal for achieving competitive pricing and a wide range of potential solutions.
The firm fixed-price contract type shifts cost-related risks to the contractor, which can protect the government from unexpected price increases.
The contract is being managed by the Department of the Army, a major procuring agency with established oversight processes.

Sector Analysis

This contract falls within the "Other Commercial and Service Industry Machinery Manufacturing" sector, specifically related to defense applications. The market for military vehicle components and systems is substantial, dominated by large defense contractors like Lockheed Martin. This award represents a specific procurement within the broader defense industrial base, focusing on specialized kits for the Stryker platform. Comparable spending benchmarks would involve analyzing other contracts for vehicle modernization kits or integrated systems for similar platforms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award was made to a large prime contractor, Lockheed Martin. While large prime contractors often engage small businesses for subcontracting, the absence of specific set-aside provisions means that direct opportunities for small businesses through this particular contract award are not guaranteed and would depend on the prime contractor's subcontracting plan.

Oversight & Accountability

The Department of the Army, through its various contracting and program management offices, will provide oversight for this contract. Accountability measures are typically embedded within the contract terms, including delivery schedules, quality standards, and payment milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Stryker Vehicle Program
PEO STRI Contracts
PM Stryker Contracts
Defense Vehicle Component Manufacturing
Military Vehicle Kits

Risk Flags

Contract awarded to a single large prime contractor.
Limited public information on specific kit capabilities.
Duration of contract requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to LOCKHEED MARTIN CORPORATION. VTESS BASE KITS FOR PEO STRI AND PM STRYKER.

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 $11.8 million.

What is the period of performance?

Start: 2023-07-31. End: 2026-09-30.

What are the specific capabilities and intended uses of the VTESS BASE KITS?

The provided data does not detail the specific capabilities or intended uses of the VTESS BASE KITS. However, given the context of PEO STRI and PM STRYKER, these kits are likely enhancements or modifications for the U.S. Army's Stryker family of vehicles. VTESS could potentially stand for 'Vehicle Tactical Electronic Systems' or a similar designation, implying electronic or tactical system upgrades. These could range from improved communication systems, sensor integration, power management, or mission-specific equipment. Further investigation into Army procurement documents or technical specifications would be required to ascertain the precise function and benefits of these kits.

How does the $11.8 million contract value compare to historical spending on similar VTESS kits or Stryker upgrades?

Without historical data specific to VTESS BASE KITS or directly comparable Stryker upgrade kits, a precise historical spending comparison is not possible with the provided information. The $11.8 million award is for a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a standalone procurement. To establish a benchmark, one would need to analyze past contracts for similar modifications or additions to Stryker vehicles, considering factors like the scope of work, quantity of kits, and inflation. Researching previous awards by PM Stryker or PEO STRI for vehicle enhancements would be the next step in assessing if this $11.8 million represents a typical or outlier investment.

What is Lockheed Martin's track record with the Stryker program and similar vehicle modernization contracts?

Lockheed Martin Corporation is a major defense contractor with extensive experience in developing and producing military vehicles and systems. While General Dynamics Land Systems is the prime contractor for the Stryker vehicle itself, Lockheed Martin often plays a significant role in providing various subsystems, upgrades, and integrated technologies for numerous military platforms, including those used by the U.S. Army. Their track record with the Stryker program would likely involve supplying components, electronic systems, or weapon integration. Assessing their performance on this specific VTESS BASE KITS contract would require reviewing past performance evaluations, delivery history, and any quality or cost issues on similar Army modernization efforts.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks for this contract include technical performance issues if the VTESS BASE KITS do not meet specifications, delivery delays, and potential cost overruns (though mitigated by the firm fixed-price structure). The firm fixed-price nature shifts the primary financial risk to Lockheed Martin. Mitigation strategies employed by the Department of the Army would typically involve robust contract oversight, clear performance metrics, regular progress reviews, and potentially liquidated damages clauses for late delivery. The use of full and open competition also mitigates the risk of relying on a single source and potentially receiving suboptimal pricing or technology.

What is the expected impact of these VTESS BASE KITS on the operational effectiveness of the Stryker vehicles?

The specific impact of the VTESS BASE KITS on Stryker vehicle operational effectiveness cannot be determined without knowing the exact nature of the kits. If 'VTESS' refers to advanced electronic systems, the kits could enhance situational awareness, command and control capabilities, or electronic warfare defenses. If they relate to power or mobility, they might improve endurance or performance in challenging terrains. The fact that the Army is procuring these kits, especially through a competitive process, suggests they are intended to provide a tangible benefit, likely improving the overall mission capability, survivability, or efficiency of the Stryker platform in its intended operational environment.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK16R0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 GLOBAL INNOVATION CIR, ORLANDO, FL, 32825

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: $11,781,787

Exercised Options: $11,781,787

Current Obligation: $11,781,787

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $14,178,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK17D0003

IDV Type: IDC

Timeline