Lockheed Martin awarded $16M for radar equipment, with potential for significant cost overruns

Contract Overview

Contract Amount: $16,040,511 ($16.0M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2001-03-28

End Date: 2011-09-01

Contract Duration: 3,809 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200107!000287!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C2020 !A!N!*!N! !20010328!20040930!130956345!787662220!834951691!N!LOCKHEED MARTIN CORPORATION !ELECTRONICS PARKWAY BLDG 7!SYRACUSE !NY!13221!73000!067!36!SYRACUSE !ONONDAGA !NEW YORK !+000015900000!Y!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A2 !MISSILE AND SPACE SYSTEMS !2GQD!AN/TPS-59 RADAR SYS !334511!*!*!3! ! ! !*!*!*!B!*!*!N!Z!B !N!J!1!001!N!4A!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!* !A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to LOCKHEED MARTIN CORPORATION for work described as: 200107!000287!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C2020 !A!N!*!N! !20010328!20040930!130956345!787662220!834951691!N!LOCKHEED MARTIN CORPORATION !ELECTRONICS PARKWAY BLDG 7!SYRACUSE !NY!13221!73000!067!36!SYRACUSE !ONOND… Key points: 1. Contract value of $16.04 million for radar equipment. 2. Awarded to Lockheed Martin Corporation, a major defense contractor. 3. Contract duration spans over 3 years, indicating a substantial project. 4. The contract is for radar equipment, specifically the AN/TPS-59 radar system. 5. The North American Industry Classification System (NAICS) code is 334511, related to instrument manufacturing. 6. The contract type is a Firm Fixed Price (FFP) definitive contract. 7. The contract was not competitively procured, raising questions about price discovery. 8. The contract was awarded to a single source, limiting competition.

Value Assessment

Rating: questionable

The contract value of $16.04 million for radar equipment, specifically the AN/TPS-59 system, needs further benchmarking against similar procurements. Without comparative data on the cost of this specific radar system or comparable systems, it is difficult to definitively assess value for money. The firm fixed-price nature suggests cost control, but the lack of competition could lead to inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded on a sole-source basis. This indicates a lack of competitive bidding, which typically drives down prices and encourages innovation. The absence of multiple bidders means the government did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium, as there was no competitive pressure to ensure the lowest possible price for the radar equipment.

Public Impact

The U.S. Marine Corps is the primary beneficiary of this contract, receiving advanced radar systems. The contract delivers critical radar equipment, likely for surveillance, detection, and navigation purposes. The geographic impact is primarily within the United States, with potential deployment to operational theaters. The contract supports jobs within Lockheed Martin Corporation and its supply chain, particularly in New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce the incentive for contractors to offer the best possible price.
The specific performance metrics and delivery schedule are not detailed, posing potential execution risks.
The long duration of the contract (over 3 years) increases the risk of scope creep or unforeseen cost increases.

Positive Signals

Firm Fixed Price contract type helps to cap the government's financial exposure.
Award to a known contractor like Lockheed Martin suggests a reliance on established capabilities.
The contract is for a specific, identifiable product (AN/TPS-59 radar system).

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of radar and navigation systems. The market for such specialized defense electronics is characterized by high barriers to entry, significant R&D investment, and a limited number of prime contractors capable of producing advanced systems. Comparable spending benchmarks would involve analyzing other procurements for similar radar systems by the Department of Defense or allied nations.

Small Business Impact

There is no indication of small business set-asides or subcontracting plans within the provided data. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless Lockheed Martin voluntarily engages them in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be defined by the contract terms, including delivery schedules and performance specifications. Transparency is limited due to the sole-source nature and lack of public detail on performance metrics.

Related Government Programs

AN/TPS-59 Radar System
Marine Corps Systems Command Procurements
Defense Electronics Manufacturing
Sole-Source Defense Contracts
Radar Equipment Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to LOCKHEED MARTIN CORPORATION. 200107!000287!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785401C2020 !A!N!*!N! !20010328!20040930!130956345!787662220!834951691!N!LOCKHEED MARTIN CORPORATION !ELECTRONICS PARKWAY BLDG 7!SYRACUSE !NY!13221!73000!067!36!SYRACUSE !ONONDAGA !NEW YORK !+000015900000!Y!N!000000000000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A2 !MISSILE AND SPACE SYSTEMS !2GQD!AN/TPS-59 RADAR SYS !334511!*!*!3! ! ! !*!*!*!B!*!*!N!

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 $16.0 million.

What is the period of performance?

Start: 2001-03-28. End: 2011-09-01.

What is the historical spending pattern for the AN/TPS-59 radar system or similar systems procured by the Marine Corps?

Historical spending data for the AN/TPS-59 radar system or comparable systems is not provided in the current data extract. To assess historical spending patterns, one would need to access contract databases and search for previous awards related to this specific system or its predecessors/alternatives. Analyzing trends in award values, quantities, and contract types over time would reveal if this $16.04 million award is consistent with past investments or represents a significant deviation. Understanding the lifecycle of such systems, including upgrades and sustainment contracts, is crucial for a comprehensive historical analysis. Without this historical context, it's challenging to determine if the current award represents a typical investment or an anomaly.

What specific performance capabilities does the AN/TPS-59 radar system offer, and how do these compare to current market offerings?

The AN/TPS-59 radar system is an air defense radar designed for long-range detection and tracking of aircraft and missiles. Specific performance capabilities, such as range, resolution, target discrimination, and electronic counter-countermeasure (ECCM) features, are proprietary details typically found in technical specifications and operational assessments. A comparison to current market offerings would require evaluating radars from other manufacturers (e.g., Raytheon, Northrop Grumman) that serve similar roles. Key comparison points would include technological advancements, mobility, power requirements, maintenance needs, and overall cost-effectiveness. Given the sole-source nature of this award, it suggests the AN/TPS-59 may possess unique or legacy capabilities that are critical for specific Marine Corps operational requirements, or that Lockheed Martin is the sole provider of necessary support and upgrades.

What is Lockheed Martin Corporation's track record with the U.S. Marine Corps for similar radar systems or defense electronics?

Lockheed Martin Corporation has a long-standing and extensive track record as a major defense contractor, including significant work with the U.S. Marine Corps and other branches of the Department of Defense. They are known for producing a wide range of complex systems, including radar, missile systems, and aerospace components. For radar systems specifically, Lockheed Martin has been involved in various programs, though the AN/TPS-59 might be a specific variant or system they are uniquely positioned to provide or support. A detailed review of their past performance on similar contracts would involve examining contract awards, delivery performance, quality ratings, and any past performance issues or commendations. Their established presence and capabilities in defense electronics suggest a high likelihood of meeting the technical requirements, but past performance on specific radar programs would offer a more precise indicator of reliability and efficiency.

What are the potential risks associated with a sole-source award for critical radar equipment?

The primary risk associated with a sole-source award for critical radar equipment is the potential for inflated pricing due to the lack of competition. Without competing bids, the government loses the leverage to negotiate the best possible price, potentially leading to higher costs for taxpayers. Another risk is reduced incentive for the contractor to innovate or improve efficiency, as there is no competitive pressure to do so. Furthermore, reliance on a single supplier can create vulnerabilities in the supply chain and long-term sustainment, as the government may become dependent on that specific contractor for parts, maintenance, and upgrades. This dependence can also limit future flexibility if the government wishes to switch to a different, potentially more advanced or cost-effective system in the future.

How does the $16.04 million contract value compare to the overall budget or spending on radar systems within the Marine Corps?

The provided data does not include information on the overall budget or total spending on radar systems within the Marine Corps. Therefore, a direct comparison of the $16.04 million award to the broader financial context is not possible. To make such a comparison, one would need access to the Marine Corps' annual budget allocations for procurement, research, development, testing, and evaluation (RDT&E), and sustainment, specifically for radar and related C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems. Understanding the proportion this single contract represents of the total radar spending would help assess its significance and potential impact on overall budget priorities.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: ELECTRONICS PARKWAY BLDG 7, SYRACUSE, NY, 13221

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline