DoD's $31M Exciter Radar Contract Awarded to Lockheed Martin Under Sole-Source Basis
Contract Overview
Contract Amount: $31,044,987 ($31.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2010-12-17
End Date: 2017-09-30
Contract Duration: 2,479 days
Daily Burn Rate: $12.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: EXCITER RADAR
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $31.0 million to LOCKHEED MARTIN CORPORATION for work described as: EXCITER RADAR Key points: 1. Significant investment in advanced radar technology for national security. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2479 days) may indicate complex development or sustainment. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $31M over approximately 6.8 years is difficult to benchmark without specific unit details or comparable sole-source awards. The cost-plus-fixed-fee structure can incentivize cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds may be at higher risk of inefficiency due to the lack of competitive pressure on pricing and performance.
Public Impact
National security implications of advanced radar systems. Potential for taxpayer funds to be used less efficiently without competition. Lack of transparency in sole-source contract justifications. Limited opportunities for small businesses in this high-value defense contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
- No small business participation
Positive Signals
- Supports national security objectives
- Awarded to a major defense contractor with established capabilities
Sector Analysis
This contract falls within the Defense sector, specifically for radar systems. Defense spending on advanced technologies like radar is substantial, with benchmarks often driven by specific technological requirements and sole-source justifications.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Lockheed Martin, is handling the entire scope, potentially missing opportunities for subcontracting with smaller, specialized firms.
Oversight & Accountability
Oversight for this sole-source contract would typically be managed by the Defense Contract Management Agency (DCMA). The cost-plus-fixed-fee structure necessitates close monitoring of costs and performance to ensure value for money.
Related Government Programs
- National Security
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus contract type may lead to cost overruns.
- No small business participation limits economic opportunity.
- Long contract duration requires sustained oversight.
- Potential for vendor lock-in due to specialized technology.
Tags
national-security, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.0 million to LOCKHEED MARTIN CORPORATION. EXCITER RADAR
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 $31.0 million.
What is the period of performance?
Start: 2010-12-17. End: 2017-09-30.
What specific justification was provided for the sole-source award of the Exciter Radar contract, and were alternative competitive strategies considered?
Sole-source awards typically require a justification, such as the existence of only one responsible source or a compelling urgency. Without access to the specific justification document, it's impossible to detail the rationale. Agencies are expected to explore competitive options, but unique technological requirements or proprietary data can sometimes lead to sole-source decisions, albeit with potential cost implications.
How does the cost-plus-fixed-fee (CPFF) structure impact the risk profile for this $31M Exciter Radar contract, and what controls are in place?
The CPFF structure shifts some cost risk to the government while providing the contractor with a guaranteed profit. This can incentivize higher spending. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate risks of cost overruns and ensure the contractor remains efficient in meeting the contract's objectives.
What is the expected operational effectiveness and long-term value of the Exciter Radar system procured under this contract for national security?
The 'Exciter Radar' designation suggests a system likely intended for advanced threat detection, tracking, or targeting capabilities. Its long-term value hinges on its technological superiority, reliability, integration with existing defense systems, and adaptability to evolving threats. The $31M investment aims to enhance national security by providing critical situational awareness and operational advantages.
Industry Classification
NAICS: Public Administration › National Security and International Affairs › National Security
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q10R0138
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,044,987
Exercised Options: $31,044,987
Current Obligation: $31,044,987
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-12-17
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2018-06-11
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)