DoD Air Force Spends $12.8M to Upgrade Aircraft Radios, Replacing Older Models with New Technology
Contract Overview
Contract Amount: $12,829,585 ($12.8M)
Contractor: Lockheed Martin Corp
Awarding Agency: Department of Defense
Start Date: 2025-04-03
End Date: 2031-07-16
Contract Duration: 2,295 days
Daily Burn Rate: $5.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INTEGRATE HIGH FREQUENCY (HF) RADIOS BY REPLACING ARC-190 WITH ARC-260, INTEGRATE ULTRA HIGH FREQUENCY (UHF) RADIOS BY REPLACING ARC-164 WITH ARC-210 GEN 6 AND INTEGRATE VERY HIGH FREQUENCY (VHF) RADIOS BYREPLACING ARC-222 WITH ARC-210 GEN 6
Place of Performance
Location: MARIETTA, COBB County, GEORGIA, 30063
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to LOCKHEED MARTIN CORP for work described as: INTEGRATE HIGH FREQUENCY (HF) RADIOS BY REPLACING ARC-190 WITH ARC-260, INTEGRATE ULTRA HIGH FREQUENCY (UHF) RADIOS BY REPLACING ARC-164 WITH ARC-210 GEN 6 AND INTEGRATE VERY HIGH FREQUENCY (VHF) RADIOS BYREPLACING ARC-222 WITH ARC-210 GEN 6 Key points: 1. Significant investment in modernizing communication systems for enhanced operational capabilities. 2. Sole-source award to Lockheed Martin suggests potential lack of competitive bidding for this specific upgrade. 3. Long contract duration (2025-2031) indicates a phased integration and potential for cost overruns. 4. Focus on HF, UHF, and VHF radio integration points to a comprehensive communication system overhaul.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar radio integration contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and may result in a higher overall cost to the government compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Modernized communication systems will improve the effectiveness and safety of Air Force operations. Potential for increased interoperability between different aircraft and command centers. Long-term sustainment and upgrade costs for these new radio systems will need to be monitored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type carries inherent cost escalation risks.
- Long contract duration increases exposure to market fluctuations and potential scope creep.
Positive Signals
- Upgrades critical communication systems for enhanced operational effectiveness.
- Standardizes radio technology across multiple aircraft platforms.
- Long-term contract provides predictable funding for modernization efforts.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending on avionics and communication systems is a significant component of defense modernization budgets, aimed at maintaining technological superiority.
Small Business Impact
The data does not indicate any specific provisions or participation goals for small businesses in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited to subcontracting roles.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight to ensure costs are reasonable and allocable. The long duration necessitates continuous monitoring of performance and expenditures by the Department of the Air Force.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to higher prices.
- Cost-plus contract type is susceptible to cost overruns.
- Long contract duration increases risk exposure.
- Dependency on a single contractor for critical systems.
- Potential for integration challenges with existing platforms.
Tags
aircraft-manufacturing, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to LOCKHEED MARTIN CORP. INTEGRATE HIGH FREQUENCY (HF) RADIOS BY REPLACING ARC-190 WITH ARC-260, INTEGRATE ULTRA HIGH FREQUENCY (UHF) RADIOS BY REPLACING ARC-164 WITH ARC-210 GEN 6 AND INTEGRATE VERY HIGH FREQUENCY (VHF) RADIOS BYREPLACING ARC-222 WITH ARC-210 GEN 6
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORP.
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 $12.8 million.
What is the period of performance?
Start: 2025-04-03. End: 2031-07-16.
What is the projected total cost of ownership for these new radio systems over their lifecycle, including maintenance and future upgrades?
The current contract value is $12.8 million, covering integration through July 2031. However, the total cost of ownership is not fully detailed. This will include ongoing sustainment, potential software updates, and eventual replacement or further upgrades. A comprehensive lifecycle cost analysis should be conducted to understand the full financial commitment beyond the initial integration phase.
Were there any attempts to explore competitive alternatives or sole-source justifications before awarding this contract to Lockheed Martin?
The provided data explicitly states the contract was 'NOT COMPETED' and is a 'sole-source' award. This implies that a competitive process was not undertaken. A thorough justification for the sole-source award, detailing why only Lockheed Martin could fulfill the requirement, should exist within the agency's procurement documentation.
How will the effectiveness of these new radio systems be measured, and what are the key performance indicators (KPIs) for this contract?
The effectiveness of the new radio systems will likely be measured by improved communication reliability, range, clarity, and reduced downtime compared to the legacy systems. Key performance indicators could include successful transmission rates, signal integrity metrics, and operational readiness levels achieved post-integration. Formal testing and operational assessments by the Air Force will be crucial.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 86 SOUTH COBB DR, MARIETTA, GA, 30063
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: $102,505,861
Exercised Options: $102,049,714
Current Obligation: $12,829,585
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862520D3000
IDV Type: IDC
Timeline
Start Date: 2025-04-03
Current End Date: 2031-07-16
Potential End Date: 2031-07-16 00:00:00
Last Modified: 2025-12-16
More Contracts from Lockheed Martin Corp
- Federal Contract — $48.1B (Department of Energy)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (National Aeronautics and Space Administration)
- 200207!000021!5700!CZ62 !smc/Pkj LOS Angeles AFB !F0470102C0002 !A!N! !N! !20011116!20070630!872978978!196596688!834951691!n!lockheed Martin Corporation !1111 Lockheed Martin WAY !sunnyvale !ca!94089!77000!085!06!sunnyvale !santa Clara !california!+000012250000!n!n!000000000000!ar92!rdte/Space - Other - Applied Research !A2 !missile and Space Systems !3gfk!milstar !541710!E! !1! ! ! ! ! !99990909!B! ! !B! !d!n!j!2!001!n!2a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $9.0B (Department of Defense)
- Next Generation Overhead Persistent Infrared Geosynchronous Earth Orbit Space Vehicle 1-3 Phase 1 — $7.3B (Department of Defense)
- Federal Contract — $7.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)