Air Force awards $3.17M to Lockheed Martin for radar logistics, extending to March 2026

Contract Overview

Contract Amount: $3,167,344 ($3.2M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-29

End Date: 2026-03-28

Contract Duration: 545 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AN/FPS-117 CONTRACTOR LOGISTICS SUPPORT (CLS) FOR ATMOSPHERIC EARLY WARNING SYSTEMS

Place of Performance

Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $3.2 million to LOCKHEED MARTIN CORPORATION for work described as: AN/FPS-117 CONTRACTOR LOGISTICS SUPPORT (CLS) FOR ATMOSPHERIC EARLY WARNING SYSTEMS Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. Sole-source award raises questions about potential price overruns and lack of competitive pressure. 3. Contract duration of 545 days suggests a focused, short-term need for logistics support. 4. The award falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. 5. Logistics support for early warning systems is critical for national defense readiness. 6. The contractor, Lockheed Martin, is a major defense contractor with extensive experience in this domain.

Value Assessment

Rating: fair

The contract value of $3.17 million for 545 days of logistics support for atmospheric early warning systems appears reasonable on its face, given the specialized nature of the equipment and the contractor's established role. However, without a competitive bidding process, it is difficult to benchmark the pricing against market alternatives or assess if the government received the best possible value. The firm-fixed-price contract type mitigates some risk by capping costs, but the absence of competition prevents a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Lockheed Martin Corporation, was solicited. This approach is typically used when there is a unique capability or proprietary technology involved, or in cases of urgent and compelling need where competition is not feasible. The lack of competition means there were no other bidders to compare against, potentially limiting price discovery and the government's ability to negotiate the most favorable terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the absence of competition removes the incentive for the contractor to offer the lowest possible price. It also limits opportunities for other capable companies to compete for government business.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring the continued operational readiness of atmospheric early warning systems. Services delivered include contractor logistics support, crucial for maintaining complex radar systems. The geographic impact is likely concentrated at Air Force installations where these early warning systems are deployed. Workforce implications may involve specialized technical personnel employed by Lockheed Martin to provide the support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to sole-source nature.
Reliance on a single contractor for critical logistics support could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to an established contractor (Lockheed Martin) with proven experience in defense systems.
Contract supports critical national defense infrastructure (early warning systems).

Sector Analysis

This contract falls within the aerospace and defense sector, specifically supporting radar and early warning systems. The market for such specialized logistics and maintenance services is dominated by a few large, established defense contractors. Spending in this area is driven by national security requirements and the need to maintain aging but critical defense platforms. Comparable spending benchmarks are difficult to establish due to the proprietary nature of many defense systems and the sole-source awards common in this niche.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by the award to Lockheed Martin Corporation, a large prime contractor. There is no explicit information regarding subcontracting plans for small businesses within this specific award. The absence of a set-aside means that opportunities for small businesses to directly participate in this contract are limited, though they may be involved in Lockheed Martin's broader supply chain.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Radar Modernization Programs
Department of Defense Logistics and Sustainment Contracts
Atmospheric Monitoring Systems
Early Warning and Surveillance Systems

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns without competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.2 million to LOCKHEED MARTIN CORPORATION. AN/FPS-117 CONTRACTOR LOGISTICS SUPPORT (CLS) FOR ATMOSPHERIC EARLY WARNING SYSTEMS

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 $3.2 million.

What is the period of performance?

Start: 2024-09-29. End: 2026-03-28.

What is Lockheed Martin Corporation's track record with similar logistics support contracts for early warning systems?

Lockheed Martin Corporation has a long and extensive history of providing logistics, sustainment, and support services for a wide array of defense systems, including radar and early warning platforms. Their experience spans decades, encompassing complex aircraft, missile defense systems, and surveillance technologies. For atmospheric early warning systems specifically, the company has been a key player in the development, production, and ongoing support of various radar technologies. This includes providing spare parts, maintenance, technical expertise, and system upgrades. Their established presence in the defense industrial base suggests a deep understanding of the operational requirements and technical intricacies associated with maintaining such critical national security assets. Past performance on similar contracts, while not detailed here, is generally a significant factor in sole-source justifications, implying a perceived capability and reliability.

How does the pricing of this contract compare to similar sole-source awards for radar logistics support?

Directly comparing the pricing of this $3.17 million contract for 545 days of logistics support to similar sole-source awards is challenging without access to proprietary contract data and specific service scopes. Sole-source awards inherently lack the price discovery mechanism of open competition. However, the firm-fixed-price (FFP) structure suggests that the government has negotiated a set price for the defined scope of work, aiming to mitigate cost overruns. To assess value, one would typically benchmark against historical FFP contracts for comparable systems, considering factors like system complexity, age, required maintenance levels, and contractor overhead. Given Lockheed Martin's position as a major defense contractor, their pricing may reflect established rates for specialized technical support, but the absence of competition means there's no external validation of whether this represents the best market price achievable.

What are the primary risks associated with this sole-source award for critical early warning system logistics?

The primary risk associated with this sole-source award is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, Lockheed Martin may not have had the same incentive to offer the lowest possible price. Another significant risk is contractor performance dependency; the Air Force is reliant on Lockheed Martin's ability to deliver the contracted logistics support effectively. Any performance deficiencies could impact the readiness of the early warning systems. Furthermore, sole-source procurements can sometimes indicate a lack of market competition or potential barriers to entry for other qualified vendors, which could be a systemic issue. Finally, there's a risk of scope creep or unpriced contract modifications if the initial requirements were not fully defined, although the FFP structure aims to mitigate this.

How effective are atmospheric early warning systems, and what is the impact of their logistics support on national security?

Atmospheric early warning systems are critical components of national security infrastructure, providing vital intelligence on potential threats such as missile launches, aircraft incursions, and other atmospheric phenomena. Their effectiveness lies in providing timely and accurate data to decision-makers, enabling rapid response and strategic planning. The logistics support covered by this contract is essential for maintaining the operational readiness and reliability of these systems. Without consistent and expert maintenance, spare parts, and technical support, these complex radar systems could degrade, leading to reduced detection capabilities, false alarms, or outright system failures. Therefore, effective logistics support directly translates to enhanced situational awareness and a stronger national defense posture, ensuring the systems are available and functioning optimally when needed.

What are the historical spending patterns for similar logistics support contracts within the Department of Defense?

Historical spending patterns for logistics support contracts within the Department of Defense (DoD) are substantial and varied, reflecting the vast array of military equipment requiring ongoing maintenance and sustainment. For radar and early warning systems, spending can range from millions to billions of dollars over the lifecycle of a program. These contracts often involve firm-fixed-price or cost-plus-incentive-fee structures and are frequently awarded to large defense prime contractors like Lockheed Martin, Northrop Grumman, and Raytheon. Sole-source awards are not uncommon for specialized systems where only one contractor possesses the necessary technical data, expertise, or intellectual property. Spending trends are influenced by factors such as the age of existing systems, modernization efforts, geopolitical threats, and budget allocations. Analyzing historical data requires segmenting by system type, contractor, contract type, and duration to identify meaningful benchmarks.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $3,167,344

Exercised Options: $3,167,344

Current Obligation: $3,167,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA821720D0006

IDV Type: IDC

Timeline