DoD Awards $49.6M for Iraq Integrated Air Defense Radar System to Lockheed Martin
Contract Overview
Contract Amount: $49,598,463 ($49.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-12-26
End Date: 2025-07-05
Contract Duration: 2,018 days
Daily Burn Rate: $24.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IRAQ INTEGRATED AIR DEFENSE SYSTEM LONG RANGE RADAR 3
Place of Performance
Location: LITTLETON, JEFFERSON County, COLORADO, 80127
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $49.6 million to LOCKHEED MARTIN CORPORATION for work described as: IRAQ INTEGRATED AIR DEFENSE SYSTEM LONG RANGE RADAR 3 Key points: 1. Significant investment in air defense technology for international partner. 2. Sole-source award to Lockheed Martin raises questions about competition. 3. Long-term contract duration (2019-2025) suggests ongoing need. 4. Focus on radar systems highlights critical defense capabilities.
Value Assessment
Rating: fair
The contract value of $49.6 million is substantial for a specialized radar system. Without comparable contract data, assessing its pricing against similar systems is difficult. The firm fixed-price structure aims to control costs, but the lack of competition could lead to suboptimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competitive bidding. This approach may be justified by unique capabilities or existing integration requirements, but it limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
Enhances security posture for a partner nation through advanced radar technology. Supports U.S. foreign policy objectives by providing critical defense assets. Potential for technology transfer and interoperability with U.S. systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in pricing justification.
- Potential for cost overruns due to lack of competitive pressure.
Positive Signals
- Addresses a critical defense need for air defense.
- Utilizes established technology from a known defense contractor.
- Long-term contract provides stability for program execution.
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced radar and integrated air defense systems. Spending in this area is driven by geopolitical needs and technological advancements. Benchmarks for similar sole-source radar systems are difficult to ascertain publicly.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, which is common for highly specialized defense systems.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would typically involve program management reviews, performance monitoring, and financial audits to ensure contract compliance and effective use of funds.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.6 million to LOCKHEED MARTIN CORPORATION. IRAQ INTEGRATED AIR DEFENSE SYSTEM LONG RANGE RADAR 3
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 $49.6 million.
What is the period of performance?
Start: 2019-12-26. End: 2025-07-05.
What specific technical capabilities justify the sole-source award for the Iraq Integrated Air Defense System radar?
The justification for a sole-source award typically centers on unique technical requirements, proprietary technology, or critical interoperability needs that only one contractor can meet. For the Iraq Integrated Air Defense System, this could involve specific long-range detection capabilities, integration with existing Iraqi defense infrastructure, or adherence to stringent U.S. military specifications that Lockheed Martin uniquely possesses or has developed.
How does the firm fixed-price contract structure mitigate risks associated with sole-source procurement?
A firm fixed-price (FFP) contract establishes a ceiling price that the contractor must adhere to, regardless of actual costs incurred. While this shifts cost risk to the contractor, the absence of competition in a sole-source scenario means the initial negotiated price might not reflect the most economical option. Therefore, FFP alone doesn't guarantee optimal value without robust negotiation and cost analysis.
What is the long-term strategic value of providing this radar system to Iraq?
The long-term strategic value lies in enhancing regional stability and security by improving Iraq's ability to detect and counter aerial threats. This strengthens a partner nation's defense capabilities, potentially reducing reliance on external support and contributing to counter-terrorism efforts. It also aligns with U.S. foreign policy goals of promoting security and stability in the Middle East.
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
Address: 12999 DEER CREEK CANYON RD, LITTLETON, CO, 80127
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,598,463
Exercised Options: $49,598,463
Current Obligation: $49,598,463
Subaward Activity
Number of Subawards: 102
Total Subaward Amount: $27,151,736
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-12-26
Current End Date: 2025-07-05
Potential End Date: 2025-07-05 00:00:00
Last Modified: 2025-12-22
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