DHS Coast Guard Awards $32.1M for 17 Seaspray Radar Systems, Training, and Installation

Contract Overview

Contract Amount: $32,155,627 ($32.2M)

Contractor: Leonardo UK Ltd

Awarding Agency: Department of Homeland Security

Start Date: 2008-03-14

End Date: 2008-05-31

Contract Duration: 78 days

Daily Burn Rate: $412.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE OF FIFTEEN (15) PRODUCTION SEASPRAY 7500E SURFACE SEARCH RADAR SYSTEMS INCLUDING REMOVAL OF THE EXISTING RAYTHEON APS-137 RADAR SYTEM, INSTALLATION KITS, ICE DETECTION CAPABILITY, OPERATOR TRAINING AND TWO (2) SPARE RADAR SYSTEMS

Plain-Language Summary

Department of Homeland Security obligated $32.2 million to LEONARDO UK LTD for work described as: PURCHASE OF FIFTEEN (15) PRODUCTION SEASPRAY 7500E SURFACE SEARCH RADAR SYSTEMS INCLUDING REMOVAL OF THE EXISTING RAYTHEON APS-137 RADAR SYTEM, INSTALLATION KITS, ICE DETECTION CAPABILITY, OPERATOR TRAINING AND TWO (2) SPARE RADAR SYSTEMS Key points: 1. Significant investment in advanced radar technology for maritime surveillance. 2. Contract awarded to Leonardo UK Ltd, a key player in defense electronics. 3. Potential for obsolescence risk with older radar system removal. 4. Focus on search and detection capabilities highlights operational needs.

Value Assessment

Rating: good

The total award of $32.16M for 17 radar systems (15 production + 2 spares) and associated services appears reasonable given the advanced technology and scope. Benchmarking against similar complex radar system procurements would provide a more precise valuation.

Cost Per Unit: $1,891,507

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove a fair price. This method ensures multiple vendors had the opportunity to propose solutions.

Taxpayer Impact: Taxpayer funds are being used for critical national security and operational assets, ensuring the Coast Guard has necessary surveillance capabilities.

Public Impact

Enhances U.S. Coast Guard's maritime domain awareness and interdiction capabilities. Improves search and rescue operations through advanced detection technology. Supports national security by bolstering border and coastal surveillance. Potential for follow-on procurements or upgrades based on system performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for integration challenges with existing platforms.
  • Reliance on a single foreign supplier for critical technology.
  • Risk of cost overruns if installation or training proves complex.

Positive Signals

  • Awarded via full and open competition.
  • Includes essential training and installation support.
  • Addresses critical operational needs for maritime security.

Sector Analysis

The procurement falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is driven by defense, homeland security, and aviation needs, with significant R&D investment.

Small Business Impact

The contract was awarded to Leonardo UK Ltd, a large business. There is no indication of specific subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The Department of Homeland Security, through the U.S. Coast Guard, is responsible for oversight. Contract award details suggest a structured procurement process, but ongoing performance monitoring details are not provided.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Homeland Security Contracting
  • U.S. Coast Guard Programs

Risk Flags

  • Potential for technology obsolescence in the future.
  • Dependence on a single supplier for critical components.
  • Integration complexity with existing maritime platforms.
  • Geopolitical risks associated with a foreign supplier.

Tags

search-detection-navigation-guidance-aer, department-of-homeland-security, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.2 million to LEONARDO UK LTD. PURCHASE OF FIFTEEN (15) PRODUCTION SEASPRAY 7500E SURFACE SEARCH RADAR SYSTEMS INCLUDING REMOVAL OF THE EXISTING RAYTHEON APS-137 RADAR SYTEM, INSTALLATION KITS, ICE DETECTION CAPABILITY, OPERATOR TRAINING AND TWO (2) SPARE RADAR SYSTEMS

Who is the contractor on this award?

The obligated recipient is LEONARDO UK LTD.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2008-03-14. End: 2008-05-31.

What is the long-term sustainment strategy for these radar systems, and what are the projected costs?

The provided data focuses on the initial procurement and installation. A comprehensive long-term sustainment strategy, including maintenance schedules, spare parts provisioning, and projected operational costs over the system's lifecycle, would be crucial for assessing the total cost of ownership and ensuring continued operational readiness.

How will the performance of the new Seaspray 7500E systems be measured against the capabilities of the older Raytheon APS-137 systems?

Performance metrics should be established to quantify the improvements offered by the Seaspray 7500E, such as detection range, accuracy, weather penetration, and target identification capabilities, compared to the legacy APS-137. This comparison is vital for validating the technological upgrade and its return on investment.

Are there any potential cybersecurity risks associated with the new radar systems and their integration into existing Coast Guard networks?

As with any advanced electronic system, cybersecurity is a critical consideration. The integration of the Seaspray 7500E systems into Coast Guard networks necessitates a thorough cybersecurity assessment to identify and mitigate potential vulnerabilities, ensuring the integrity and security of sensitive operational data.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: CREWE TOLL HOUSE, EDINBURGH

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $67,893,109

Exercised Options: $42,039,257

Current Obligation: $32,155,627

Parent Contract

Parent Award PIID: HSCG3805DH00009

IDV Type: IDC

Timeline

Start Date: 2008-03-14

Current End Date: 2008-05-31

Potential End Date: 2008-05-31 00:00:00

Last Modified: 2012-07-30

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