DoD Awards $145.6M for Advanced Radar Threat System Variant 3, X-Band to Lockheed Martin
Contract Overview
Contract Amount: $145,603,924 ($145.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-05-04
End Date: 2026-12-26
Contract Duration: 1,332 days
Daily Burn Rate: $109.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ADVANCED RADAR THREAT SYSTEM VARIANT 3, X-BAND
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $145.6 million to LOCKHEED MARTIN CORPORATION for work described as: ADVANCED RADAR THREAT SYSTEM VARIANT 3, X-BAND Key points: 1. Contract awarded to Lockheed Martin Corporation for advanced radar systems. 2. Significant investment in defense technology, specifically radar systems. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Sector focus on Ammunition (except Small Arms) Manufacturing, though the product is radar.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for potential cost growth, making direct price comparison difficult. The awarded amount of $145.6M for a 3.5-year period needs further analysis against similar advanced radar system procurements to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific impact on price discovery for this specialized radar system requires deeper analysis of the proposals received.
Taxpayer Impact: Taxpayer funds are being utilized for advanced defense technology. The effectiveness of the competition in securing the best price for this specialized system will determine the ultimate taxpayer impact.
Public Impact
Enhances national defense capabilities with advanced radar technology. Supports technological advancement in the defense manufacturing sector. Potential job creation within Lockheed Martin and its supply chain. Ensures the Air Force has access to critical threat detection systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs.
- The 'Ammunition (except Small Arms) Manufacturing' NAICS code seems misaligned with a radar system.
- No explicit mention of small business participation.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical defense need for advanced radar.
- Long-term contract duration suggests sustained capability development.
Sector Analysis
The defense sector, particularly in advanced electronics like radar systems, sees significant investment. Benchmarks for similar complex radar systems are crucial for evaluating this $145.6M award.
Small Business Impact
The data indicates that small businesses were not directly involved in this prime contract award, as the 'sb' field is false. Further investigation would be needed to determine if small businesses are part of Lockheed Martin's subcontracting plan.
Oversight & Accountability
The Department of the Air Force is the contracting agency. Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure delivery of the specified advanced radar system.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to contract type.
- Misaligned NAICS code suggests potential data entry error or unclear program scope.
- Lack of small business participation noted.
- Specialized nature of the system may limit competitive landscape in future procurements.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $145.6 million to LOCKHEED MARTIN CORPORATION. ADVANCED RADAR THREAT SYSTEM VARIANT 3, X-BAND
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 Air Force).
What is the total obligated amount?
The obligated amount is $145.6 million.
What is the period of performance?
Start: 2023-05-04. End: 2026-12-26.
What is the specific threat detection capability this radar system provides, and how does it compare to existing technologies?
The provided data does not detail the specific threat detection capabilities of the 'ADVANCED RADAR THREAT SYSTEM VARIANT 3, X-BAND'. Further analysis would require access to technical specifications and performance metrics. Understanding its unique features and advantages over current systems is crucial for assessing its true value and necessity.
Given the Cost Plus Fixed Fee contract, what mechanisms are in place to control cost overruns and ensure efficient resource utilization?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Effective oversight by the Department of the Air Force, including rigorous auditing of expenses and performance monitoring, is essential. Clear milestones and performance incentives can also help mitigate risks and encourage efficiency.
How does the 'Ammunition (except Small Arms) Manufacturing' NAICS code align with the procurement of an advanced radar system, and could this indicate a broader strategic objective?
The alignment of an 'Ammunition (except Small Arms) Manufacturing' NAICS code with an advanced radar system procurement is unusual and warrants clarification. It could indicate a misclassification, or potentially, that the radar system is intended to support or integrate with ammunition systems, such as targeting or threat assessment for munitions. Further investigation into the program's strategic context is needed.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
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: $698,248,879
Exercised Options: $175,581,881
Current Obligation: $145,603,924
Subaward Activity
Number of Subawards: 72
Total Subaward Amount: $32,736,599
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865623DA017
IDV Type: IDC
Timeline
Start Date: 2023-05-04
Current End Date: 2026-12-26
Potential End Date: 2031-01-04 00:00:00
Last Modified: 2026-01-20
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