DoD Awards $154M for Radar Electronic Units Production, Sole-Sourced to Longbow LLC

Contract Overview

Contract Amount: $154,035,342 ($154.0M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2017-10-31

End Date: 2022-01-31

Contract Duration: 1,553 days

Daily Burn Rate: $99.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RADAR ELECTRONIC UNITS PRODUCTION USG LOT 8 AND FMS REQUIREMENTS

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $154.0 million to LONGBOW LLC for work described as: RADAR ELECTRONIC UNITS PRODUCTION USG LOT 8 AND FMS REQUIREMENTS Key points: 1. Significant contract value of $154 million for radar electronic units. 2. Sole-source award to Longbow LLC indicates limited competition. 3. Potential risk associated with lack of competitive bidding impacting price. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract value of $154 million for radar electronic units is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar production runs or alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may be paying a premium for these radar electronic units.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. Dependence on a single supplier could create supply chain vulnerabilities. The specific application of these radar units could impact national security readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential defense procurement
Long-term contract duration

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation capabilities, but competitive sourcing is generally preferred to ensure cost-effectiveness.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the prime contractor is Longbow LLC, which is not identified as a small business. This suggests limited direct participation for small businesses in this specific contract.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and performance. The Department of the Army should have robust internal controls to justify the lack of competition.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for inflated costs due to lack of competitive pressure.
Dependence on a single supplier creates supply chain risk.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $154.0 million to LONGBOW LLC. RADAR ELECTRONIC UNITS PRODUCTION USG LOT 8 AND FMS REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is LONGBOW LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $154.0 million.

What is the period of performance?

Start: 2017-10-31. End: 2022-01-31.

What is the justification for the sole-source award, and has the government explored alternative procurement strategies?

The justification for a sole-source award typically involves unique capabilities or urgent needs. The government should have documented why competition was not feasible or advantageous. Exploring alternative strategies, such as phased procurements or market research for potential competitors, is crucial to ensure the best value is obtained, even in limited competition scenarios.

How does the unit cost of these radar electronic units compare to industry benchmarks or previous contracts?

Without access to specific unit cost data and comparable market information, a precise benchmark is impossible. However, given the sole-source nature, there's a heightened risk that the unit cost may be higher than if the contract were competed. The Department of Defense should conduct post-award analysis to validate pricing against available data.

What are the potential risks to program effectiveness if Longbow LLC faces production issues or supply chain disruptions?

A sole-source award concentrates risk on a single supplier. If Longbow LLC experiences production issues or supply chain disruptions, the delivery of critical radar electronic units could be significantly delayed, impacting the operational readiness of the platforms they support. Contingency planning and close monitoring by the Army are essential to mitigate these risks.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND 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 (UEI: 834951691)

Address: 5600 W SAND LAKE RD, ORLANDO, FL, 32819

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $154,035,342

Exercised Options: $154,035,342

Current Obligation: $154,035,342

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0055

IDV Type: IDC

Timeline