DoD's $49.5M AN/TPS 59A(V)3 Radar Electronics Contract Awarded to Lockheed Martin Raises Oversight Questions
Contract Overview
Contract Amount: $49,506,872 ($49.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2014-06-13
End Date: 2019-07-12
Contract Duration: 1,855 days
Daily Burn Rate: $26.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/TPS 59A(V)3 ARRAY ELECTRONICS
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $49.5 million to LOCKHEED MARTIN CORPORATION for work described as: AN/TPS 59A(V)3 ARRAY ELECTRONICS Key points: 1. Significant investment in advanced radar electronics for defense applications. 2. Sole-source award to Lockheed Martin suggests limited market competition. 3. Potential for cost overruns and reduced value due to lack of competition. 4. Sector focus on advanced defense systems and instrumentation.
Value Assessment
Rating: questionable
The contract value of $49.5 million for AN/TPS 59A(V)3 array electronics appears high given the sole-source nature of the award. Without competitive bidding, it's difficult to benchmark against similar systems or ensure the best possible price was achieved.
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 lack of competition limits price discovery and may result in a higher overall cost to the government compared to a competitively bid contract.
Taxpayer Impact: Taxpayer funds may be used inefficiently due to the absence of competitive pressure on pricing and innovation.
Public Impact
Advanced radar technology ensures critical defense capabilities. Sole-source award may limit opportunities for smaller, innovative defense contractors. Long contract duration (over 5 years) requires sustained oversight. Potential for taxpayer funds to be spent without competitive validation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
Positive Signals
- Critical defense system
- Established contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced radar systems and instrumentation. Spending in this area is critical for national security, but often involves high R&D costs and specialized manufacturing, which can sometimes lead to sole-source procurements.
Small Business Impact
The sole-source nature of this contract, awarded to a large corporation like Lockheed Martin, likely excluded small businesses from participating. There is no indication of subcontracting plans to involve small businesses in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants close scrutiny. Robust oversight is needed to ensure the necessity of a sole-source award and to verify that the pricing is fair and reasonable, despite the lack of competitive bids.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs.
- Limited transparency in procurement justification.
- No small business participation evident.
- Long-term contract requires sustained oversight.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.5 million to LOCKHEED MARTIN CORPORATION. AN/TPS 59A(V)3 ARRAY ELECTRONICS
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 $49.5 million.
What is the period of performance?
Start: 2014-06-13. End: 2019-07-12.
What was the justification for not competing this significant defense contract, and were alternative solutions explored?
The justification for not competing this $49.5 million contract is not detailed in the provided data. Typically, sole-source awards are justified by factors such as unique capabilities, urgent needs, or lack of viable alternatives. A thorough review would be required to confirm these justifications and ensure no competitive opportunities were overlooked.
How does the awarded price compare to industry benchmarks for similar radar electronics, considering the sole-source nature?
Benchmarking the price is challenging without competitive data. However, sole-source contracts often carry a premium. The government should have conducted a thorough price analysis, potentially using historical data or independent cost estimates, to ensure the $49.5 million was fair and reasonable despite the lack of competition.
What mechanisms are in place to ensure the effectiveness and value for money of this radar system over its lifecycle?
Effectiveness and value are typically ensured through performance metrics, testing, and ongoing program management. Given the sole-source award, rigorous government oversight of performance, adherence to specifications, and cost control throughout the contract's duration (2014-2019) is paramount to achieving value for taxpayer money.
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
Solicitation ID: W25G1V13R0019
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
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: $61,525,052
Exercised Options: $49,506,872
Current Obligation: $49,506,872
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $2,293,239
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-06-13
Current End Date: 2019-07-12
Potential End Date: 2019-07-12 00:00:00
Last Modified: 2018-12-27
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