DoD Awards $94M to Lockheed Martin for Radar Modernization, Facing Limited Competition
Contract Overview
Contract Amount: $94,174,400 ($94.2M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2009-06-30
End Date: 2016-07-31
Contract Duration: 2,588 days
Daily Burn Rate: $36.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RSAF RADAR MODERNIZATION (FPS-117)
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $94.2 million to LOCKHEED MARTIN CORPORATION for work described as: RSAF RADAR MODERNIZATION (FPS-117) Key points: 1. Significant investment in critical defense technology. 2. Sole-source award to Lockheed Martin raises competition concerns. 3. Long contract duration suggests potential for cost overruns. 4. Focus on radar systems highlights importance of surveillance capabilities.
Value Assessment
Rating: questionable
The contract value of $94.17M for radar modernization is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value relative to market rates is difficult. The lack of competition further complicates a fair value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a limited competition, with Lockheed Martin Corporation as the sole awardee. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully open competition.
Taxpayer Impact: The limited competition may result in taxpayers paying a premium for this critical radar modernization.
Public Impact
Enhances national security surveillance capabilities. Supports advanced radar technology development. Impacts military readiness and operational effectiveness. Potential for technological advancements in radar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Sole-source award
- Long contract duration
Positive Signals
- Critical defense technology
- Modernization of essential systems
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced radar systems. Spending in this area is crucial for maintaining technological superiority and national security. Benchmarks for similar radar modernization projects would be needed for a precise comparison.
Small Business Impact
The data indicates this contract was not awarded to small businesses. There is no specific information provided regarding subcontracting opportunities for small businesses within this large prime contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial given the contract's value and duration to ensure performance and cost control.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to long duration.
- Lack of competitive pressure may lead to reduced innovation.
- Dependency on a single supplier for critical defense technology.
- Limited transparency in pricing due to sole-source award.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $94.2 million to LOCKHEED MARTIN CORPORATION. RSAF RADAR MODERNIZATION (FPS-117)
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $94.2 million.
What is the period of performance?
Start: 2009-06-30. End: 2016-07-31.
What specific technological advancements does this radar modernization entail, and how do they justify the cost and limited competition?
The specific advancements are not detailed in the provided data. However, radar modernization typically involves upgrading components for improved detection range, accuracy, target discrimination, and resistance to jamming. These upgrades are often proprietary or require specialized expertise, potentially justifying limited competition and higher costs due to the unique capabilities and R&D investment by the contractor.
What are the long-term risks associated with a sole-source award for critical defense infrastructure like radar systems?
Long-term risks of a sole-source award include vendor lock-in, reduced incentive for innovation and cost reduction by the incumbent, and potential vulnerabilities if the sole provider faces financial or operational difficulties. It also limits the government's ability to leverage competitive market forces for future upgrades or replacements, potentially leading to sustained higher costs.
How will the effectiveness of the modernized radar system be measured, and what are the key performance indicators (KPIs)?
Effectiveness is typically measured against predefined Key Performance Parameters (KPPs) outlined in the contract's Statement of Work (SOW). These KPIs often include metrics such as detection range, accuracy, reliability (Mean Time Between Failures), processing speed, and successful integration with existing command and control systems. Independent testing and validation by the end-user agency are crucial.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $94,214,899
Exercised Options: $94,214,899
Current Obligation: $94,174,400
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-06-30
Current End Date: 2016-07-31
Potential End Date: 2016-07-31 00:00:00
Last Modified: 2020-06-23
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