DoD awards $83.7M for Longbow Apache fire control systems, with a significant portion for sustainment

Contract Overview

Contract Amount: $54,715,358 ($54.7M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2002-12-20

End Date: 2012-03-31

Contract Duration: 3,389 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200304!001805!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0067 !A!N! !N! !20021220!20050630!837750223!837750223!837750223!N!LONGBOW LIMITED LIABILITY COMP!5600 SAND LAKE RD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000005038600!Y!N!000000000000!1230!FIRE CONTROL SYSTEMS, COMPLETE !A7 !ELECTRONICS AND COMMUNICATION !1AIG!LONGBOW APACHE !336413!E! !1! ! ! ! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!1A!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!* !A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $54.7 million to LONGBOW LLC for work described as: 200304!001805!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0067 !A!N! !N! !20021220!20050630!837750223!837750223!837750223!N!LONGBOW LIMITED LIABILITY COMP!5600 SAND LAKE RD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANG… Key points: 1. Contract value indicates a substantial investment in maintaining and upgrading critical aviation systems. 2. The award to Longbow LLC suggests a concentrated market for these specialized components. 3. Long contract duration points to potential long-term sustainment needs and associated risks. 4. Fixed-price contract type aims to control costs, but requires careful monitoring for scope creep. 5. The 'Not Competed' status warrants scrutiny regarding justification and potential missed savings. 6. Focus on fire control systems highlights the importance of advanced technology in modern warfare.

Value Assessment

Rating: fair

The total contract value of $83.7 million over its life is substantial for specialized defense systems. Benchmarking against similar contracts for advanced fire control systems is difficult without more specific technical details and market data. However, the duration and scope suggest a significant investment. The fixed-price nature provides cost certainty, but the lack of competition raises questions about whether the government achieved the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when only one responsible source can provide the required supplies or services. The justification for sole-source awards needs to be thoroughly reviewed to ensure it is valid and that the government did not miss an opportunity to foster competition and potentially achieve better pricing.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as competition is limited, potentially reducing the government's negotiating leverage.

Public Impact

The U.S. Army benefits from the continued availability of critical fire control systems for its Apache helicopters. Services delivered include the provision of complete fire control systems, likely encompassing hardware, software, and integration. The geographic impact is primarily within the U.S. military's operational theaters, supporting aviation readiness. Workforce implications may include specialized engineering, manufacturing, and maintenance roles within the contractor's organization and potentially its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce incentive for contractor innovation and efficiency.
Long contract duration increases risk of cost overruns if not managed tightly.
Dependence on a single supplier can create supply chain vulnerabilities.

Positive Signals

Award ensures continued operational capability for a critical defense asset.
Fixed-price contract provides a degree of cost certainty.
Contractor is a known entity for this specific system, implying expertise.

Sector Analysis

The defense sector, particularly aviation and missile systems, represents a significant portion of federal spending. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category, highlighting the specialized nature of components required for advanced military platforms like the Apache helicopter. The market for such systems is often concentrated among a few key suppliers due to high barriers to entry, including technological complexity and stringent qualification requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component. Given the sole-source nature and the specialized technology involved, it is unlikely that significant subcontracting opportunities for small businesses would be mandated unless specifically included in the contract terms by the prime contractor. Further analysis would be needed to determine if Longbow LLC has a subcontracting plan that includes small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and specifications. Accountability measures are inherent in the fixed-price contract type, which shifts some risk to the contractor. Transparency regarding the sole-source justification and pricing negotiations is crucial for public accountability, though detailed pricing breakdowns are often proprietary.

Related Government Programs

Apache Helicopter Modernization Programs
Aviation Systems Procurement
Missile Fire Control Systems
Defense Logistics Agency (DLA) Aviation Support
Tactical Aircraft Maintenance and Repair

Risk Flags

Sole-source award justification requires review.
Potential for higher costs due to lack of competition.
Long contract duration increases risk exposure.
Dependence on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.7 million to LONGBOW LLC. 200304!001805!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0067 !A!N! !N! !20021220!20050630!837750223!837750223!837750223!N!LONGBOW LIMITED LIABILITY COMP!5600 SAND LAKE RD !ORLANDO !FL!32819!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000005038600!Y!N!000000000000!1230!FIRE CONTROL SYSTEMS, COMPLETE !A7 !ELECTRONICS AND COMMUNICATION !1AIG!LONGBOW APACHE !336413!E! !1! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is LONGBOW LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $54.7 million.

What is the period of performance?

Start: 2002-12-20. End: 2012-03-31.

What is the specific justification for awarding this contract on a sole-source basis to Longbow LLC?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the lack of viable alternative sources that meet the government's requirements. For specialized systems like the Longbow Apache fire control system, the original equipment manufacturer or a highly specialized entity is often the only qualified provider. The government would need to document that a full and open competition was not feasible or cost-effective, citing reasons such as the need for interoperability with existing systems, unique technical expertise, or limited production capabilities among other potential suppliers. This justification is critical for ensuring taxpayer value and preventing unnecessary sole-source awards.

How does the total contract value of $83.7 million compare to similar fire control system procurements?

Direct comparison of the $83.7 million total contract value is challenging without detailed specifications of the fire control systems and the scope of services (e.g., new production vs. sustainment, upgrades, training). However, for advanced military aviation systems, this figure represents a significant investment. Contracts for complex avionics and weapon systems can range from tens to hundreds of millions of dollars, depending on the platform, technology maturity, quantity, and contract duration. The value suggests a comprehensive package, likely including long-term support, maintenance, and potentially upgrades, rather than just initial procurement of a few units. Benchmarking would require access to classified or proprietary data on comparable systems.

What are the primary risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude and duration include potential cost overruns due to a lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and supply chain vulnerabilities if the sole provider faces production issues. Taxpayers may bear a higher cost compared to a competitive procurement. Furthermore, long-term reliance on a single supplier can create strategic risks if that supplier's business circumstances change or if geopolitical factors impact their ability to deliver. Robust contract management, performance monitoring, and clear exit strategies are essential to mitigate these risks.

What is the historical spending pattern for Longbow Apache fire control systems?

Historical spending on Longbow Apache fire control systems would likely show a consistent investment pattern, reflecting the system's critical role in Army aviation. Prior contracts would have supported initial fielding, subsequent upgrades, and ongoing sustainment. Analyzing past spending would reveal trends in unit costs, the proportion allocated to procurement versus sustainment, and the evolution of the system's capabilities. Significant spending over time indicates the enduring importance of this technology and the long-term commitment required for its support. Without access to specific historical contract data, it's difficult to quantify these patterns precisely.

What is the performance track record of Longbow LLC in delivering similar defense systems?

Longbow LLC, as the likely provider of the Longbow system, would have a track record associated with the development and production of this specific weapon system. Performance would be evaluated based on meeting technical specifications, delivery schedules, and quality standards for previous contracts. The U.S. military's continued reliance on the Longbow system suggests a generally positive performance history, although specific details on past contract performance, including any issues or disputes, would typically be found in government performance assessment databases (e.g., Contractor Performance Assessment Reporting System - CPARS).

Industry Classification

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

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 W SAND LAKE RD, ORLANDO, FL, 90

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline