DoD Awards $338.6M for 29 Persistent Threat Detection Systems to Lockheed Martin
Contract Overview
Contract Amount: $338,628,231 ($338.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2011-05-27
End Date: 2012-05-26
Contract Duration: 365 days
Daily Burn Rate: $927.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE EFFORT WILL BE FOR THE PROCUREMENT OF TWENTY-NINE (29) DUAL SENSOR (CONFIGURED WITH TWO MX-20 LITE SENSORS) PERSISTENT THREAT DETECTION SYSTEMS (PTDSS), SEVEN (7) SETS OF TETHER-UP KITS TO MAINTAIN A ONE-TO-FOUR SPARING RATIO, TWO (2) SETS OF THEATER SPARES, THIRTY-SIX (36) MX-20 LITE SENSOR SPARES, AND FIVE (5) SETS OF SITE SPARES FOR THE INITIAL FIVE (5) FULLY-INTEGRATED PTDSS 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 $338.6 million to LOCKHEED MARTIN CORPORATION for work described as: THE EFFORT WILL BE FOR THE PROCUREMENT OF TWENTY-NINE (29) DUAL SENSOR (CONFIGURED WITH TWO MX-20 LITE SENSORS) PERSISTENT THREAT DETECTION SYSTEMS (PTDSS), SEVEN (7) SETS OF TETHER-UP KITS TO MAINTAIN A ONE-TO-FOUR SPARING RATIO, TWO (2) SETS OF THEATER SPARES, THIRTY-SIX (36) M… Key points: 1. Significant investment in advanced surveillance technology for ongoing operations. 2. Sole-source award to Lockheed Martin raises questions about competition and potential cost savings. 3. High value contract with a clear operational need, but limited transparency on pricing. 4. Focus on IT and Defense sectors, with implications for national security capabilities.
Value Assessment
Rating: questionable
The total award of $338.6 million for 29 PTDSS and associated spares appears high. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess value for money. The benchmark of $927,749 per system (total award / 29 systems) is a starting point but lacks context.
Cost Per Unit: $927,749
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This lack of competition limits price discovery and may result in a higher price than if multiple vendors had vied for the contract. The justification for sole-source procurement is critical.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.
Public Impact
Enhances intelligence, surveillance, and reconnaissance (ISR) capabilities for military operations. Supports ongoing efforts in Operation Enduring Freedom, directly impacting battlefield awareness. Procurement of spares ensures system readiness and operational continuity. Potential for technology transfer and further development within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Sole-source justification needed
- Limited cost transparency
Positive Signals
- Addresses critical operational need
- Supports ongoing military operations
- Includes essential spare parts for sustainment
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced surveillance and detection systems. The spending benchmark for similar systems is not readily available, but the scale of this award suggests a significant technological investment.
Small Business Impact
The data indicates this contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no information provided regarding subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management, performance monitoring, and financial audits to ensure compliance and proper use of funds.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High contract value warrants scrutiny of cost-effectiveness.
- Lack of transparency regarding specific system capabilities and performance metrics.
- Potential for cost overruns if not closely managed.
- Dependence on a single supplier for critical technology.
Tags
search-detection-navigation-guidance-aer, department-of-defense, oh, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $338.6 million to LOCKHEED MARTIN CORPORATION. THE EFFORT WILL BE FOR THE PROCUREMENT OF TWENTY-NINE (29) DUAL SENSOR (CONFIGURED WITH TWO MX-20 LITE SENSORS) PERSISTENT THREAT DETECTION SYSTEMS (PTDSS), SEVEN (7) SETS OF TETHER-UP KITS TO MAINTAIN A ONE-TO-FOUR SPARING RATIO, TWO (2) SETS OF THEATER SPARES, THIRTY-SIX (36) MX-20 LITE SENSOR SPARES, AND FIVE (5) SETS OF SITE SPARES FOR THE INITIAL FIVE (5) FULLY-INTEGRATED PTDSS 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 $338.6 million.
What is the period of performance?
Start: 2011-05-27. End: 2012-05-26.
What is the specific justification for awarding this contract on a sole-source basis, and were any market research efforts conducted to identify potential alternative sources?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Typically, this involves demonstrating that only one responsible source can provide the required supplies or services. Market research is a standard practice to identify potential sources, and its absence or limitations in this case would be a significant concern regarding value for taxpayer money.
How does the per-unit cost of $927,749 for the MX-20 Lite sensors compare to industry benchmarks for similar advanced sensor technology, considering the quantity and configuration?
Benchmarking the per-unit cost of $927,749 requires detailed comparison with similar advanced sensor systems in the market. Factors like sensor resolution, processing capabilities, environmental ruggedization, and integration complexity influence pricing. Without access to proprietary pricing data or independent market analysis, it's challenging to definitively state if this price represents good value or is inflated due to the sole-source nature of the award.
What are the long-term sustainment costs associated with these PTDSS, including maintenance, upgrades, and spare parts, and how were these factored into the overall value assessment?
The initial award covers the procurement and initial spares, but the total lifecycle cost is a critical factor. Long-term sustainment expenses for advanced systems like PTDSS can be substantial. Understanding how these future costs were projected and accounted for in the contract's overall value assessment is essential for a comprehensive evaluation of taxpayer impact and the true cost-effectiveness of this investment.
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $338,628,231
Exercised Options: $338,628,231
Current Obligation: $338,628,231
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2011-05-27
Current End Date: 2012-05-26
Potential End Date: 2012-05-26 00:00:00
Last Modified: 2014-06-23
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