DoD Awards $133M Lockheed Martin Contract for E2D RADAR OTPS, Lacking Competition
Contract Overview
Contract Amount: $13,299,999 ($13.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-05-23
End Date: 2026-06-30
Contract Duration: 1,499 days
Daily Burn Rate: $8.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: E2D RADAR OTPS PHASE 3&4,GROUP 1 NONRECURRING OTPS ENG & DEV
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to LOCKHEED MARTIN CORPORATION for work described as: E2D RADAR OTPS PHASE 3&4,GROUP 1 NONRECURRING OTPS ENG & DEV Key points: 1. Significant award value of $133 million. 2. Sole-source award to Lockheed Martin Corporation. 3. Contract covers critical radar system development. 4. Potential for cost overruns due to Cost Plus Fixed Fee structure.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type can lead to higher costs if not managed tightly. Benchmarking against similar complex radar development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying a premium for this critical radar system.
Public Impact
Impacts naval aviation capabilities with advanced radar technology. Potential for extended development timelines and associated costs. Reliance on a single contractor for a key defense system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration (over 4 years)
Positive Signals
- Award to established defense contractor
- Focus on critical technology development
Sector Analysis
This contract falls within the defense sector, specifically instrument manufacturing for electrical signal testing. Defense spending on advanced radar systems is substantial, with significant R&D investment.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost control and adherence to development milestones. The Department of the Navy is the awarding agency.
Related Government Programs
- Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee structure
- Potential for cost overruns
- Long contract duration
- No small business participation indicated
Tags
instrument-manufacturing-for-measuring-a, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to LOCKHEED MARTIN CORPORATION. E2D RADAR OTPS PHASE 3&4,GROUP 1 NONRECURRING OTPS ENG & DEV
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 Navy).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2022-05-23. End: 2026-06-30.
What specific technical advancements justify the sole-source award and the $133 million price tag for the E2D RADAR OTPS?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or essential integration with existing systems that only the incumbent contractor can provide. The $133 million price tag reflects the complexity of advanced radar development, including non-recurring engineering and development costs for Phase 3 & 4 of the E2D RADAR OTPS program.
What are the primary risks associated with a Cost Plus Fixed Fee contract for advanced radar development, and how are they being mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies include stringent oversight, detailed cost tracking, performance metrics, and clear scope definition to prevent scope creep. The long duration of this contract increases the potential for unforeseen cost increases.
How will the effectiveness of the E2D RADAR OTPS be measured, and what are the key performance indicators for this contract?
Effectiveness will likely be measured against specific technical performance requirements outlined in the contract, such as detection range, accuracy, processing speed, and reliability under various operational conditions. Key performance indicators would include meeting these technical specifications, successful integration with the E-2D aircraft, and timely delivery of developmental milestones.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833521R0059
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,299,999
Exercised Options: $13,299,999
Current Obligation: $13,299,999
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $768,804
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-05-23
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-09-30
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