DOT awards $97M contract for advanced surface movement radars to replace aging ASDE-3 systems

Contract Overview

Contract Amount: $97,036,550 ($97.0M)

Contractor: Saab Inc

Awarding Agency: Department of Transportation

Start Date: 2025-09-29

End Date: 2032-02-18

Contract Duration: 2,333 days

Daily Burn Rate: $41.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PURCHASE OF SURFACE MOVEMENT RADARS, MODEL 4 (SMR4), WHICH IS A REPLACEMENT FOR AIRPORT SURFACE DETECTION EQUIPMENT MODEL 3 SURFACE MOVEMENT RADARS (ASDE-3 SMR). PERIOD OF PERFORMANCE: SEPTEMBER 30, 2025 - SEPTEMBER 29, 2028.

Place of Performance

Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $97.0 million to SAAB INC for work described as: PURCHASE OF SURFACE MOVEMENT RADARS, MODEL 4 (SMR4), WHICH IS A REPLACEMENT FOR AIRPORT SURFACE DETECTION EQUIPMENT MODEL 3 SURFACE MOVEMENT RADARS (ASDE-3 SMR). PERIOD OF PERFORMANCE: SEPTEMBER 30, 2025 - SEPTEMBER 29, 2028. Key points: 1. The contract aims to modernize air traffic control with advanced radar technology. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The definitive contract structure with a firm fixed price offers cost certainty. 4. The replacement of ASDE-3 systems addresses obsolescence and enhances safety. 5. Performance is expected over a multi-year period, indicating long-term need. 6. The awardee, SAAB INC, is a known entity in aerospace and defense systems.

Value Assessment

Rating: good

The contract value of approximately $97 million for surface movement radars appears reasonable given the technological upgrade and multi-year performance period. Benchmarking against similar procurements for advanced air traffic control systems would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bids suggests a healthy level of competition for this critical aviation technology. This competitive environment is generally favorable for achieving competitive pricing and innovative solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider range of suppliers to participate, potentially leading to better value.

Public Impact

Enhances aviation safety and efficiency at airports by providing improved surface surveillance. Benefits air traffic controllers and airlines through more reliable and advanced radar data. Supports the modernization of the National Airspace System (NAS). Primarily impacts airport operations and the safety of aircraft on the ground. May indirectly support jobs in the aerospace manufacturing and technology sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future upgrades or maintenance are tied to the initial awardee.
Dependence on a single model (SMR4) might limit flexibility in future technological advancements.
Long-term sustainment costs for the SMR4 system need careful monitoring.

Positive Signals

Addresses a critical need for replacing aging infrastructure with modern technology.
Firm fixed-price contract provides budget predictability.
Full and open competition suggests a competitive award process.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on air traffic management systems. The market for such specialized radar and navigation equipment is characterized by high technological barriers to entry and a limited number of qualified suppliers. The FAA's investment in replacing the ASDE-3 with SMR4 aligns with global trends towards modernizing air traffic control infrastructure to improve safety and capacity.

Small Business Impact

The contract data does not indicate any specific small business set-aside provisions. Given the specialized nature of advanced radar systems, it is likely that the prime contractor, SAAB INC, will manage the majority of the work. Subcontracting opportunities for small businesses may exist in areas such as component manufacturing, installation, or support services, but these are not explicitly detailed in the provided information.

Oversight & Accountability

The contract is managed by the Federal Aviation Administration (FAA), which has established oversight mechanisms for procurements. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through federal procurement databases. Further oversight would typically involve program management reviews, performance monitoring, and potentially Inspector General audits if issues arise.

Related Government Programs

Airport Surface Detection Equipment (ASDE)
Air Traffic Control Systems
Aeronautical Navigation Systems
Federal Aviation Administration Procurements

Risk Flags

Technology obsolescence of current systems.
Potential integration issues with existing infrastructure.
Need for extensive personnel training.
Long-term sustainment and maintenance costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $97.0 million to SAAB INC. PURCHASE OF SURFACE MOVEMENT RADARS, MODEL 4 (SMR4), WHICH IS A REPLACEMENT FOR AIRPORT SURFACE DETECTION EQUIPMENT MODEL 3 SURFACE MOVEMENT RADARS (ASDE-3 SMR). PERIOD OF PERFORMANCE: SEPTEMBER 30, 2025 - SEPTEMBER 29, 2028.

Who is the contractor on this award?

The obligated recipient is SAAB INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $97.0 million.

What is the period of performance?

Start: 2025-09-29. End: 2032-02-18.

What is the historical spending pattern for Surface Movement Radars by the FAA?

Historical spending on Surface Movement Radars by the FAA would likely show a pattern of periodic upgrades to address technological obsolescence and enhance safety. The ASDE-3 system itself would have been procured and maintained over its lifecycle. Analyzing past contracts for similar systems, including their duration, value, and the number of bidders, can provide context for the current $97 million award. This analysis would reveal trends in technology adoption, cost escalation, and the competitive landscape for air traffic control modernization efforts. Without specific historical data, it's difficult to definitively state the pattern, but it's reasonable to assume a cycle of investment driven by safety regulations and technological advancements.

How does the per-unit cost of the SMR4 compare to the previous ASDE-3 system or similar market offerings?

A direct per-unit cost comparison between the SMR4 and the ASDE-3 is challenging without knowing the exact number of units procured under this contract and the original cost of the ASDE-3 units. However, advanced radar systems like the SMR4, incorporating newer technologies for improved detection and tracking, are generally expected to have a higher per-unit cost than their predecessors due to R&D, more sophisticated components, and enhanced capabilities. Benchmarking against current market offerings for comparable advanced surface movement radar systems would be necessary to assess if the SMR4's price is competitive. Factors such as software integration, maintenance packages, and warranty periods also influence the overall cost and make direct comparisons complex.

What are the key performance indicators (KPIs) for this SMR4 contract, and how will they be measured?

Key performance indicators for this SMR4 contract would likely focus on the reliability, availability, and performance of the radar system in detecting and tracking aircraft and vehicles on the airport surface. Specific KPIs could include Mean Time Between Failures (MTBF), system uptime percentage, detection accuracy (e.g., minimum detectable target size, range accuracy), and latency (time from event to display). The FAA would establish these KPIs in the contract's performance work statement. Measurement would involve data logging from the installed systems, regular performance testing, and potentially user feedback from air traffic controllers. Contractual remedies, such as price adjustments or penalties, may be tied to meeting or failing to meet these KPIs.

What is SAAB INC's track record with the FAA and similar air traffic control system procurements?

SAAB INC has a significant track record in the aerospace and defense industry, including providing advanced systems for air traffic management. Their experience likely includes supplying radar, communication, and surveillance solutions to various civil aviation authorities and military organizations globally. For the FAA specifically, SAAB may have supplied components or integrated systems in the past. A thorough review would involve examining their past performance on similar contracts, including any history of successful delivery, cost overruns, schedule delays, or contract disputes. Their established presence suggests a level of capability and familiarity with the regulatory and operational environment of air traffic control.

What are the potential risks associated with the transition from ASDE-3 to SMR4, and how are they being mitigated?

Potential risks in transitioning from ASDE-3 to SMR4 include integration challenges with existing air traffic control infrastructure, potential disruptions to airport operations during installation and testing, and the need for extensive training for air traffic controllers and maintenance personnel. Mitigation strategies would involve detailed planning for phased deployment, rigorous testing protocols in simulated and live environments, comprehensive training programs, and close collaboration between SAAB INC and the FAA. The contract's performance work statement would outline specific requirements for transition management and risk mitigation, ensuring a smooth and safe handover of critical surface surveillance capabilities.

How does this $97 million investment fit into the broader FAA modernization strategy for the National Airspace System (NAS)?

This $97 million investment in SMR4 radars is a crucial component of the FAA's broader strategy to modernize the National Airspace System (NAS). The NAS modernization aims to enhance safety, increase capacity, improve efficiency, and reduce environmental impact through the adoption of new technologies. Replacing aging surveillance equipment like the ASDE-3 with advanced systems like the SMR4 directly addresses the safety and capacity enhancement goals. It supports the integration of more sophisticated data processing and communication systems within the NAS, contributing to a more resilient and future-proof air traffic management environment.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 693KA7-25-R-00001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saab Aktiebolag

Address: 85 COLLAMER CROSSINGS, EAST SYRACUSE, NY, 13057

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $267,341,617

Exercised Options: $97,036,550

Current Obligation: $97,036,550

Actual Outlays: $2,158,307

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline