DoD awards $182.6M for urgent Persistent Threat Detection Systems to Lockheed Martin

Contract Overview

Contract Amount: $182,601,500 ($182.6M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2010-04-14

End Date: 2011-06-30

Contract Duration: 442 days

Daily Burn Rate: $413.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS UNDEFINITIZED CONTRACTUAL ACTION (UCA) IS TO PROCURE 17 PERSISTENT THREAT DETECTION SYSTEMS (PTDS) INCLUDING SUPPORT EQUIPMENT AND 17 LOTS OF INITIAL SPARES, NEEDED URGENTLY IN SUPPORT OF OPERATION ENDURING FREEDOM (OEF).

Place of Performance

Location: AKRON, SUMMIT County, OHIO, 44306

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $182.6 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS UNDEFINITIZED CONTRACTUAL ACTION (UCA) IS TO PROCURE 17 PERSISTENT THREAT DETECTION SYSTEMS (PTDS) INCLUDING SUPPORT EQUIPMENT AND 17 LOTS OF INITIAL SPARES, NEEDED URGENTLY IN SUPPORT OF OPERATION ENDURING FREEDOM (OEF). Key points: 1. Contract awarded under urgent need for Operation Enduring Freedom. 2. Procurement includes 17 systems, support equipment, and initial spares. 3. The contract is a Firm Fixed Price type. 4. The contract duration is 442 days. 5. The award was made by the Department of the Army. 6. The North American Industry Classification System (NAICS) code is 334511. 7. The contractor is Lockheed Martin Corporation.

Value Assessment

Rating: questionable

The total award amount is $182.6 million for 17 Persistent Threat Detection Systems (PTDS). Without more detailed cost breakdowns or comparisons to similar systems, it is difficult to definitively assess value for money. The urgent nature of the award may have impacted pricing. Benchmarking against other detection systems or previous procurements of similar capabilities would be necessary for a more thorough valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is likely tied to the urgent operational requirements of Operation Enduring Freedom. The lack of competition means that pricing was not subject to market forces or multiple vendor proposals, potentially leading to a higher cost than if it had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for these critical systems.

Public Impact

Personnel deployed in Operation Enduring Freedom benefit from enhanced threat detection capabilities. The services delivered include the provision of 17 advanced detection systems and associated support. The geographic impact is primarily focused on operational theaters relevant to Operation Enduring Freedom. The contract supports military operations and potentially the workforce involved in deploying and maintaining these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Urgent award may have bypassed standard cost-saving procurement procedures.
Limited transparency on specific system capabilities and their cost-effectiveness.

Positive Signals

Addresses an urgent operational need, potentially saving lives.
Procures advanced technology for critical military operations.
Awarded to a known defense contractor with established capabilities.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. This industry is characterized by high technological sophistication and significant government investment, particularly in defense applications. The market size for such specialized systems is substantial, driven by national security requirements. This procurement represents a specific application of advanced sensor technology for military intelligence and surveillance.

Small Business Impact

The provided data does not indicate any small business set-aside provisions or subcontracting plans. As a sole-source award to a large defense contractor, it is unlikely that small businesses were directly involved in the primary contract. Further investigation would be needed to determine if Lockheed Martin subcontracted any portion of this work to small businesses.

Oversight & Accountability

The contract is a Firm Fixed Price (FFP) type, which generally places the cost risk on the contractor. Oversight would typically involve contract administration by the Department of the Army to ensure delivery of specified systems and adherence to the contract terms. Transparency is limited due to the sole-source nature and the urgent operational context, making detailed public scrutiny of the award process challenging.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Military Sensor Technology
Operation Enduring Freedom Support Contracts
Department of Defense Procurement

Risk Flags

Sole-source award
Urgent operational need
Undeclared Contractual Action (UCA)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $182.6 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS UNDEFINITIZED CONTRACTUAL ACTION (UCA) IS TO PROCURE 17 PERSISTENT THREAT DETECTION SYSTEMS (PTDS) INCLUDING SUPPORT EQUIPMENT AND 17 LOTS OF INITIAL SPARES, NEEDED URGENTLY IN SUPPORT OF OPERATION ENDURING FREEDOM (OEF).

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 $182.6 million.

What is the period of performance?

Start: 2010-04-14. End: 2011-06-30.

What is the specific capability of the Persistent Threat Detection Systems (PTDS) being procured?

The provided data does not detail the specific capabilities of the Persistent Threat Detection Systems (PTDS). However, the name suggests systems designed to continuously monitor an area for threats, likely employing sensors such as radar, electro-optical/infrared (EO/IR), or acoustic sensors. These systems are crucial for intelligence gathering, early warning, and force protection in dynamic operational environments. The urgent need for these systems in Operation Enduring Freedom implies they address a critical gap in current threat detection capabilities, possibly related to improvised explosive devices (IEDs), enemy movements, or other hostile activities.

How does the $182.6 million cost compare to similar systems or previous procurements?

Without specific details on the PTDS capabilities and comparable market data, a direct cost comparison is challenging. The $182.6 million award for 17 systems averages over $10.7 million per system, including support equipment and initial spares. This figure could be considered high or low depending on the technological sophistication, intended use (e.g., fixed-site vs. mobile), and operational environment. Benchmarking against other advanced surveillance or detection systems procured by the DoD, or against any prior procurements of PTDS by the Army or other services, would be necessary to assess if this represents good value for money. The sole-source nature of this award further complicates direct price comparisons.

What are the primary risks associated with this sole-source, urgent procurement?

The primary risks associated with this sole-source, urgent procurement include potential overpricing due to the lack of competition, and the possibility of receiving a system that may not be the most technologically advanced or cost-effective solution available on the market. Urgent procurements can sometimes lead to rushed decision-making, potentially overlooking alternative solutions or negotiation opportunities. Furthermore, the 'undeclared contractual action' status (UCA) suggests that the contract terms, including final pricing, may not have been fully negotiated at the outset, introducing financial uncertainty until finalized. Ensuring adequate oversight and justification for the sole-source decision is critical to mitigate these risks.

What is Lockheed Martin's track record with similar defense systems?

Lockheed Martin Corporation is a major defense contractor with extensive experience in developing and producing a wide range of advanced defense systems, including radar, surveillance, and intelligence platforms. They have a long history of supplying complex technological solutions to the U.S. military and allied nations. While specific details on their PTDS offerings are not provided in this data, their general track record suggests they possess the technical capability to deliver sophisticated systems. However, the performance and value of specific contracts can vary, and a deeper dive into their past performance on similar intelligence, surveillance, and reconnaissance (ISR) or sensor system contracts would be needed for a comprehensive assessment.

How does this spending align with historical trends for detection systems within the Department of the Army?

This $182.6 million award for PTDS represents a significant, albeit specific, investment in detection technology. Historical spending patterns for the Department of the Army often show substantial allocations towards intelligence, surveillance, and reconnaissance (ISR) capabilities, which include various forms of threat detection. The urgency tied to Operation Enduring Freedom suggests this procurement was a response to immediate battlefield needs rather than a routine modernization effort. Analyzing broader historical spending on sensor systems, electronic warfare, and ISR platforms would provide context. This single contract, while large, should be viewed within the larger portfolio of the Army's investments in maintaining situational awareness and force protection capabilities.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1210 MASSILLIN RD, AKRON, OH, 13

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $182,601,500

Exercised Options: $182,601,500

Current Obligation: $182,601,500

Contract Characteristics

Cost or Pricing Data: YES

Timeline