DoD Awards $45.4M for Apache Radar Interferometers, Sole-Sourced to Lockheed Martin
Contract Overview
Contract Amount: $45,420,025 ($45.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-08-27
End Date: 2022-09-30
Contract Duration: 1,130 days
Daily Burn Rate: $40.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: PROCUREMENT OF MODERNIZED RADAR FREQUENCY INTERFEROMETERS FOR USG AND UNITED KINGDOM REQUIREMENTS IN SUPPORT OF THE APACHE PROGRAM OFFICE.
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $45.4 million to LOCKHEED MARTIN CORPORATION for work described as: PROCUREMENT OF MODERNIZED RADAR FREQUENCY INTERFEROMETERS FOR USG AND UNITED KINGDOM REQUIREMENTS IN SUPPORT OF THE APACHE PROGRAM OFFICE. Key points: 1. Significant award for specialized Apache program components. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Potential for cost overruns given fixed-price incentive contract type. 4. High-value contract for critical defense technology.
Value Assessment
Rating: fair
The award price of $45.4M for modernized radar frequency interferometers appears reasonable given the specialized nature and sole-source award. However, without competitive bids, it's difficult to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Lockheed Martin Corporation. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this procurement means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Enhances Apache helicopter combat effectiveness with advanced radar capabilities. Supports critical defense needs for both US and UK forces. Potential impact on future competition for similar defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 40 / 10
Warning Flags
- Sole-source award limits competition.
- Fixed-price incentive contract carries cost overrun risk.
- Lack of clear justification for sole-source award.
Positive Signals
- Supports critical defense program.
- Procurement addresses modernization needs.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is often characterized by high R&D costs and long procurement cycles, with significant government oversight.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication that small businesses were involved in this specific procurement, either as prime or subcontractors.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve contract performance monitoring and financial reviews to ensure delivery and adherence to contract terms, especially given the fixed-price incentive structure.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost growth due to contract type.
- Limited transparency on vendor selection.
- High dollar value requires close monitoring.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.4 million to LOCKHEED MARTIN CORPORATION. PROCUREMENT OF MODERNIZED RADAR FREQUENCY INTERFEROMETERS FOR USG AND UNITED KINGDOM REQUIREMENTS IN SUPPORT OF THE APACHE PROGRAM OFFICE.
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 Army).
What is the total obligated amount?
The obligated amount is $45.4 million.
What is the period of performance?
Start: 2019-08-27. End: 2022-09-30.
What is the justification for the sole-source award of this critical radar technology?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the need for compatibility with existing systems where only one vendor can meet the requirement. A thorough review would be needed to confirm if these conditions were met and if alternatives were adequately explored.
What is the potential cost overrun risk associated with the fixed-price incentive contract?
Fixed-price incentive contracts share cost risks between the government and contractor. If costs exceed targets, the contractor's share increases, but the government's liability is capped. However, if the target cost is set too high or performance is poor, the government could still end up paying more than initially anticipated.
How does this procurement impact the overall modernization of the Apache fleet?
This procurement directly contributes to the modernization of the Apache fleet by providing advanced radar frequency interferometers. These components are crucial for enhancing situational awareness, target acquisition, and electronic warfare capabilities, thereby improving the platform's effectiveness in contemporary combat environments.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1801 STATE RT 17 C, OWEGO, NY, 13827
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: $45,420,025
Exercised Options: $45,420,025
Current Obligation: $45,420,025
Subaward Activity
Number of Subawards: 89
Total Subaward Amount: $49,465,027
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J18D0061
IDV Type: IDC
Timeline
Start Date: 2019-08-27
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 12:09:00
Last Modified: 2022-02-24
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