DoD awards $30.2M for 763 Laser Target Locator Modules, with a significant portion allocated for M-Code capability

Contract Overview

Contract Amount: $30,199,540 ($30.2M)

Contractor: Safran Defense & Space, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-07-07

End Date: 2024-07-12

Contract Duration: 371 days

Daily Burn Rate: $81.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 763 LASER TARGET LOCATOR MODULE II + M-CODE (LTLM II+M) SYSTEMS

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $30.2 million to SAFRAN DEFENSE & SPACE, INC. for work described as: 763 LASER TARGET LOCATOR MODULE II + M-CODE (LTLM II+M) SYSTEMS Key points: 1. The contract value of $30.2 million for 763 units suggests a per-unit cost that warrants benchmarking against similar systems. 2. Full and open competition was utilized, indicating a potentially competitive environment that should drive favorable pricing. 3. The contract is a delivery order under a larger contract vehicle, suggesting it's part of an established procurement process. 4. The primary focus on Laser Target Locator Modules with M-Code capability highlights a modernization effort in targeting systems. 5. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial for the government if managed effectively. 6. The relatively short duration of 371 days for this delivery order suggests a need for timely delivery of critical equipment.

Value Assessment

Rating: good

The total award of $30.2 million for 763 Laser Target Locator Module II + M-Code (LTLM II+M) Systems appears reasonable given the advanced nature of the technology, particularly the M-Code integration. Benchmarking against similar advanced targeting and navigation systems would provide a clearer picture of value for money. The firm-fixed-price structure is generally favorable for the government in controlling costs. However, without specific details on the system's capabilities and comparable market prices for similar M-Code enabled devices, a definitive value assessment is challenging.

Cost Per Unit: Approximately $39,077 per unit ($30,199,540 / 763 units). This figure should be compared to industry benchmarks for similar advanced targeting modules with M-Code capabilities.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to lead to better pricing and terms for the government. The use of a delivery order under an existing contract vehicle (indicated by 'st': 'MA') implies that the initial competition for the base contract was robust.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential suppliers, driving down prices through competitive bidding and ensuring the government receives the best possible value.

Public Impact

The primary beneficiaries are Department of the Army personnel who will utilize these advanced targeting systems in operational environments. The contract delivers 763 Laser Target Locator Module II + M-Code (LTLM II+M) Systems, enhancing battlefield situational awareness and precision targeting. The geographic impact is likely global, supporting deployed Army units wherever they operate. The acquisition of these systems supports the modernization of military equipment, potentially impacting the readiness and effectiveness of the U.S. Army workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence if technology advances rapidly, given the specific nature of the LTLM II+M systems.
Dependence on a single contractor for sustainment or future upgrades if not managed through competitive follow-on contracts.
Integration challenges with existing military platforms and communication systems may arise.
The specific performance metrics and testing protocols are not detailed, making it difficult to assess the system's true effectiveness in the field.

Positive Signals

The use of M-Code enhances GPS security and accuracy, a significant technological upgrade for military operations.
Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract supports the modernization of critical targeting equipment for the U.S. Army.

Sector Analysis

The market for defense electronics, particularly targeting and navigation systems, is highly specialized and competitive. This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector (NAICS 334511). The demand for such systems is driven by military modernization efforts and the need for enhanced battlefield awareness and precision. Spending in this sector is substantial, with numerous prime contractors and subcontractors vying for government awards. The value of this contract, while significant, is likely within the typical range for acquiring advanced targeting modules.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not a feature of this specific award. This suggests that the prime contractor, SAFRAN DEFENSE & SPACE, INC., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this particular contract appears minimal, though the prime contractor may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle, the base contract likely has established oversight mechanisms. Transparency is generally provided through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The firm-fixed-price nature of the contract implies that cost-based oversight might be less intensive, focusing more on performance and delivery.

Related Government Programs

Tactical Targeting Systems
GPS Navigation Systems
Military Communication Equipment
Advanced Sensor Technology
Department of Defense Procurement
Army Modernization Programs

Risk Flags

Potential for technology obsolescence
Contractor performance risk
Integration complexity with existing systems
Cost competitiveness of M-Code technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.2 million to SAFRAN DEFENSE & SPACE, INC.. 763 LASER TARGET LOCATOR MODULE II + M-CODE (LTLM II+M) SYSTEMS

Who is the contractor on this award?

The obligated recipient is SAFRAN DEFENSE & SPACE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $30.2 million.

What is the period of performance?

Start: 2023-07-07. End: 2024-07-12.

What is the track record of SAFRAN DEFENSE & SPACE, INC. with the Department of Defense, particularly in delivering similar targeting systems?

SAFRAN DEFENSE & SPACE, INC. has a history of providing defense-related products and services to the U.S. military. While specific details on their track record with LTLM II+M systems are not provided in this award notice, their presence as a prime contractor suggests prior successful engagements. A deeper dive into their contract history with the DoD would reveal their performance on previous contracts, including any issues related to delivery, quality, or cost overruns. Examining past performance evaluations and any contract disputes would offer a more comprehensive view of their reliability in fulfilling complex defense requirements.

How does the per-unit cost of $39,077 for the LTLM II+M compare to similar advanced targeting modules in the market?

The per-unit cost of approximately $39,077 for the LTLM II+M systems requires careful benchmarking. Advanced targeting modules, especially those incorporating M-Code GPS capabilities for enhanced security and accuracy, are sophisticated pieces of equipment. Market prices can vary significantly based on features, manufacturer, volume, and the specific integration requirements. To assess value, this cost should be compared against publicly available pricing for comparable systems from other defense contractors, or against historical DoD procurements of similar technology. If this price is significantly higher than comparable systems without M-Code, or higher than other M-Code enabled systems, it could indicate a potential overpayment or a premium for specific features or vendor relationships.

What are the specific risks associated with the firm-fixed-price contract type for this procurement?

The firm-fixed-price (FFP) contract type shifts the primary cost risk to the contractor, SAFRAN DEFENSE & SPACE, INC. This is generally advantageous for the government as it provides cost certainty. However, risks can emerge if the contractor underestimated the costs involved in developing, manufacturing, or delivering the LTLM II+M systems. If unforeseen technical challenges arise or material costs increase significantly, the contractor might face financial strain, potentially impacting delivery schedules or quality. Conversely, if the contractor significantly overestimates costs, the government may end up paying a premium. Effective oversight is still crucial to ensure the contractor meets all performance specifications and delivery timelines without compromising quality due to cost pressures.

What is the expected program effectiveness and impact of the LTLM II+M systems on battlefield operations?

The LTLM II+M systems are designed to enhance battlefield situational awareness and precision targeting capabilities for the U.S. Army. The 'Laser Target Locator Module II' likely refers to an upgraded version of existing technology, offering improved accuracy and range. The inclusion of 'M-Code' is a significant advancement, providing a more secure and jam-resistant GPS signal compared to older military GPS signals. This enhanced security and accuracy are critical for troops operating in contested electromagnetic environments, reducing the risk of fratricide and improving the effectiveness of munitions. The delivery of 763 units suggests a substantial deployment, aiming to equip a significant number of units or personnel, thereby potentially improving overall mission success rates and troop safety.

How does this contract align with historical spending patterns for targeting and navigation systems within the Department of Defense?

The Department of Defense consistently invests heavily in advanced targeting and navigation systems as a core component of military modernization. Spending in this category typically fluctuates based on strategic priorities, technological advancements, and the lifecycle of existing equipment. Contracts for systems like the LTLM II+M are part of a broader effort to equip forces with state-of-the-art technology. Historical spending data would likely show a continuous demand for such capabilities, with significant investments made in GPS modernization, precision-guided munitions support, and enhanced situational awareness tools. This $30.2 million award appears to be a specific instance within a larger, ongoing trend of modernization and technological enhancement in defense procurement.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB14R0017

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 COOPER LN, BEDFORD, NH, 03110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,199,540

Exercised Options: $30,199,540

Current Obligation: $30,199,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB16D0018

IDV Type: IDC

Timeline