Army awards $25.6M for 18 AN/TPQ-50 radar systems and spare parts to SRCTEC, LLC

Contract Overview

Contract Amount: $25,647,987 ($25.6M)

Contractor: Srctec, LLC

Awarding Agency: Department of Defense

Start Date: 2018-07-20

End Date: 2019-12-31

Contract Duration: 529 days

Daily Burn Rate: $48.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR EIGHTEEN (18) AN/TPQ-50 RADAR SYSTEMS AND SPARE PARTS.

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to SRCTEC, LLC for work described as: DELIVERY ORDER FOR EIGHTEEN (18) AN/TPQ-50 RADAR SYSTEMS AND SPARE PARTS. Key points: 1. The contract value of $25.6 million for 18 radar systems suggests a per-unit cost of approximately $1.42 million. 2. This award was not competed, raising questions about potential price discovery and value for money. 3. The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent overpayment. 4. The delivery order period spans over a year, indicating a sustained need for these radar systems. 5. SRCTEC, LLC is the contractor, and their performance history on similar contracts should be reviewed. 6. The procurement falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.

Value Assessment

Rating: questionable

The total award of $25.6 million for 18 AN/TPQ-50 radar systems and spare parts equates to roughly $1.42 million per system. Without direct comparable contract data for this specific system or similar advanced radar technology, it is difficult to definitively benchmark the value. However, the lack of competition suggests that the government may not have achieved the most favorable pricing. Further analysis would require access to historical pricing for these systems or data on similar procurements to assess if this represents a fair market price.

Cost Per Unit: Approximately $1.42 million per system (based on 18 systems for $25.6M)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific circumstances like urgent needs or follow-on work to a previous sole-source award. The lack of competition limits the government's ability to solicit bids from various suppliers, potentially impacting price negotiation and the exploration of alternative solutions.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that can arise from a competitive bidding process. Without multiple offers, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to higher overall expenditure.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive advanced radar systems for its operations. The contract delivers eighteen (18) AN/TPQ-50 radar systems and associated spare parts. These radar systems are crucial for search, detection, and navigation, likely supporting military intelligence and operational readiness. The geographic impact is primarily within the operational theaters of the U.S. Army, though the manufacturing location is in New York. The contract supports jobs within SRCTEC, LLC and its supply chain, contributing to the defense manufacturing workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of competitive bidding may obscure opportunities for more cost-effective solutions.
Dependence on a single source for critical radar systems could pose supply chain risks if not managed proactively.

Positive Signals

Procurement of advanced radar systems enhances military operational capabilities.
Delivery order format suggests a defined need and planned integration into Army operations.
Firm Fixed Price contract type provides cost certainty for the government once awarded.

Sector Analysis

The procurement of AN/TPQ-50 radar systems falls within the broader defense electronics and aerospace manufacturing sector. This sector is characterized by high technological complexity, significant R&D investment, and often involves specialized components and stringent quality control. The market for advanced radar systems is competitive among a few key defense contractors, but specific system procurements can sometimes be sole-sourced due to proprietary technology or unique capabilities. Comparable spending benchmarks for advanced radar systems can vary widely based on features, range, and application, but typically represent substantial investments.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions. As a sole-source award to SRCTEC, LLC, it is unlikely to involve subcontracting opportunities specifically mandated for small businesses through a competitive process. The impact on the small business ecosystem would depend on SRCTEC's internal subcontracting practices, which are not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. As a delivery order under a larger contract vehicle (though the base contract details are not provided), oversight would focus on timely delivery, adherence to specifications, and quality control. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

AN/TPQ Radar Systems
Army Tactical Systems
Defense Radar Procurement
Search and Detection Systems
Military Intelligence Equipment

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to SRCTEC, LLC. DELIVERY ORDER FOR EIGHTEEN (18) AN/TPQ-50 RADAR SYSTEMS AND SPARE PARTS.

Who is the contractor on this award?

The obligated recipient is SRCTEC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.6 million.

What is the period of performance?

Start: 2018-07-20. End: 2019-12-31.

What is SRCTEC, LLC's track record with the Department of Defense, particularly concerning AN/TPQ-50 radar systems?

SRCTEC, LLC has a history of contracts with the Department of Defense, including previous awards related to radar systems. Information regarding their specific performance on AN/TPQ-50 systems or similar advanced radar technology would require a deeper dive into contract databases and performance reports. Analyzing past delivery timelines, quality metrics, and any documented issues or commendations would provide a clearer picture of their reliability and capability. Without specific performance data tied to this contract vehicle, assessing their track record relies on broader contract history analysis, which may not fully capture their suitability for this particular sole-source award.

How does the per-unit cost of $1.42 million for the AN/TPQ-50 radar system compare to similar advanced radar systems procured by the DoD?

Benchmarking the per-unit cost of $1.42 million for the AN/TPQ-50 radar system against similar advanced radar systems is challenging without access to detailed, comparable contract awards. The AN/TPQ-50 is a counter-battery radar system designed for detecting and tracking enemy artillery, rockets, and mortars. Its cost is influenced by factors such as technological sophistication, range, mobility, and integration capabilities. Advanced radar systems for military applications can range significantly in price, from several hundred thousand dollars for simpler surveillance radars to several million dollars for highly complex, long-range, multi-function systems. Given the specialized nature and capabilities of the AN/TPQ-50, a cost in the low millions per unit is plausible, but a definitive value assessment requires direct comparison with systems offering equivalent performance characteristics procured through competitive means.

What are the primary risks associated with a sole-source award for critical military hardware like the AN/TPQ-50 radar system?

The primary risks associated with a sole-source award for critical military hardware like the AN/TPQ-50 radar system include potential overpricing due to the absence of competitive pressure, limited innovation from the sole provider, and increased supply chain vulnerability. Without competition, the government may pay a premium for the system, as the contractor faces less incentive to offer the lowest possible price. Furthermore, reliance on a single source can stifle technological advancements or alternative solutions that might emerge from a competitive environment. Supply chain risks are amplified; any disruption affecting the sole provider could significantly impact the availability of these crucial systems for the military.

What is the operational significance of the AN/TPQ-50 radar system for the Department of the Army?

The AN/TPQ-50 radar system is operationally significant for the Department of the Army as it provides critical counter-battery radar capabilities. Its primary function is to detect and track incoming enemy artillery, rocket, and mortar fire, enabling friendly forces to take protective measures and conduct counter-fire operations. This capability is vital for enhancing the survivability of troops and assets on the battlefield, as well as for disrupting enemy offensive actions. By providing early warning and precise targeting data, the AN/TPQ-50 contributes directly to the Army's situational awareness and its ability to conduct effective defensive and offensive operations in complex threat environments.

How has the Army's spending on search, detection, navigation, guidance, aeronautical, and nautical systems evolved over the past five years?

Analyzing the Army's spending evolution on search, detection, navigation, guidance, aeronautical, and nautical systems over the past five years would reveal trends in investment in these critical areas. This category encompasses a wide range of equipment, including radar systems, GPS receivers, navigation aids, and related instruments. Increased spending might indicate a heightened focus on intelligence, surveillance, reconnaissance (ISR), and precision navigation capabilities, driven by evolving operational requirements and technological advancements. Conversely, stable or decreased spending could suggest maturity in existing systems or shifts in budgetary priorities. Specific data on this spending trend would provide context for the current procurement of AN/TPQ-50 systems and highlight the Army's ongoing commitment to maintaining and upgrading its sensor and navigation technology.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SRC Inc (UEI: 063053771)

Address: 5801 E TAFT RD STE 7, SYRACUSE, NY, 13212

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,647,987

Exercised Options: $25,647,987

Current Obligation: $25,647,987

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $7,357,565

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T13DC702

IDV Type: IDC

Timeline