DoD awards $39.7M for Counter Fire Target Acquisition Radar System support, a sole-source contract

Contract Overview

Contract Amount: $39,707,713 ($39.7M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2022-11-07

Contract Duration: 1,501 days

Daily Burn Rate: $26.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NEW TASK ORDER(TO)ISSUED FOR COUNTER FIRE TARGET ACQUISITION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT (ICS)

Place of Performance

Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $39.7 million to LOCKHEED MARTIN CORPORATION for work described as: NEW TASK ORDER(TO)ISSUED FOR COUNTER FIRE TARGET ACQUISITION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT (ICS) Key points: 1. Contractor support services for a critical radar system were awarded without competition. 2. The contract spans over four years, indicating a long-term need for sustainment. 3. The sole-source nature raises questions about potential price overruns and lack of market pressure. 4. This award is for sustainment and support, not new system development. 5. The system is vital for detecting and locating enemy fire, supporting warfighter safety. 6. The contract type (Cost Plus Fixed Fee) can incentivize cost growth if not managed closely.

Value Assessment

Rating: questionable

Benchmarking value for this sole-source contract is challenging due to the lack of competitive bids. The Cost Plus Fixed Fee (CPFF) structure, while common for complex support, carries inherent risks of cost escalation if not rigorously overseen. Without comparable contract data from a competitive process, it's difficult to definitively assess if the $39.7 million represents a fair price for the services rendered. The absence of competition means there's no market-driven incentive to optimize costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when a specific contractor possesses unique capabilities, proprietary knowledge, or is the only source capable of providing the required services, often due to the nature of the system being supported. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from multiple vendors.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing offers, there is less assurance that the government secured the best possible price for these essential support services.

Public Impact

The primary beneficiaries are the U.S. Army units equipped with the AN/TPQ-53 radar system, enhancing their operational effectiveness. Services include contractor support and interim contractor support, ensuring the radar system remains operational and maintained. The geographic impact is likely global, wherever U.S. forces are deployed with this specific radar system. Workforce implications include specialized technical roles for contractor personnel supporting the radar system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
CPFF contract type requires robust oversight to prevent cost overruns.
Lack of competition may reduce incentives for contractor efficiency.
Long contract duration (over 3 years) increases exposure to potential cost increases.

Positive Signals

Ensures continued operational readiness of a critical defense system.
Provides specialized technical expertise that may not be readily available internally.
Supports warfighters by maintaining essential counter-fire capabilities.

Sector Analysis

The defense electronics and systems manufacturing sector is characterized by high R&D costs, long product lifecycles, and significant government procurement. Contracts for sustainment and support services, like this one for the AN/TPQ-53 radar, are crucial for maintaining the operational readiness of complex military equipment. The market often involves a limited number of prime contractors capable of supporting such specialized systems, leading to a higher incidence of sole-source or limited-competition awards for sustainment.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. Furthermore, the contractor, Lockheed Martin Corporation, is a large prime contractor. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan and its impact on the small business ecosystem are not detailed in the provided data. Without this information, it's difficult to assess the direct benefits or implications for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates close monitoring of costs incurred by the contractor to ensure they align with the fixed fee and the overall contract objectives. Transparency regarding cost reporting and performance metrics would be key accountability measures. Inspector General involvement could be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

AN/TPQ-53 Radar System Procurement
Counter Fire Systems
Defense Radar Manufacturing
Military Electronics Support Services

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Long contract duration
Potential for cost overruns due to CPFF structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 million to LOCKHEED MARTIN CORPORATION. NEW TASK ORDER(TO)ISSUED FOR COUNTER FIRE TARGET ACQUISITION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT (ICS)

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 $39.7 million.

What is the period of performance?

Start: 2018-09-28. End: 2022-11-07.

What is the historical spending trend for contractor support services for the AN/TPQ-53 radar system?

The provided data indicates a single task order valued at $39.7 million issued in September 2018 with an end date in November 2022. This represents the primary documented spending for contractor support services for this specific system within the given dataset. Without access to broader contract databases or historical procurement records for the AN/TPQ-53, it is difficult to establish a comprehensive spending trend. However, the duration and value suggest a significant, multi-year commitment to sustainment, implying ongoing needs beyond this specific task order. Future spending would likely depend on the system's continued operational relevance, planned upgrades, and the availability of alternative support solutions.

How does the cost per year for this contract compare to similar radar system support contracts?

Calculating a precise cost per year requires dividing the total contract value ($39.7 million) by the contract duration (1501 days, approximately 4.1 years), yielding roughly $9.7 million per year. However, a direct comparison to similar radar system support contracts is challenging without knowing the specific capabilities and complexity of those other systems, as well as the scope of services provided. Radar systems vary greatly in size, technological sophistication, and maintenance requirements. Furthermore, the 'Cost Plus Fixed Fee' (CPFF) nature of this contract means the final cost could deviate from the initial estimate. A true benchmark would require access to data on comparable sole-source or competitively procured sustainment contracts for similarly complex radar platforms, detailing their annual costs and service scopes.

What are the key performance indicators (KPIs) used to measure the contractor's performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for contractor support services (CSS) and interim contractor support (ICS) of a critical radar system like the AN/TPQ-53, typical KPIs would likely focus on system availability, mean time between failures (MTBF), mean time to repair (MTTR), response times for technical support, and adherence to maintenance schedules. Performance would also be assessed based on the quality of technical documentation provided, training effectiveness for military personnel, and successful execution of any depot-level maintenance or repair tasks. The government would monitor these metrics to ensure the radar system remains operational and meets its readiness requirements.

What is the track record of Lockheed Martin Corporation in providing support services for complex defense systems?

Lockheed Martin Corporation has an extensive and well-established track record in providing a wide array of support services for complex defense systems across multiple domains, including aerospace, naval, and ground systems. They are a major defense contractor with significant experience in lifecycle sustainment, logistics, maintenance, repair, and overhaul (MRO) for sophisticated platforms. Their portfolio includes support for aircraft, missiles, satellites, and C4ISR systems. While their long history suggests a high degree of capability and experience, the specifics of their performance on any given contract, including cost management and responsiveness, can vary. Government contract databases and performance reviews (like Contractor Performance Assessment Reporting System - CPARS) would offer more granular insights into their specific performance on contracts similar to this one.

Are there any known risks associated with the AN/TPQ-53 radar system itself that impact the support services contract?

The AN/TPQ-53 radar system is designed for counter-fire target acquisition, a critical but inherently challenging operational role. Potential risks associated with the system itself could include its susceptibility to electronic warfare, environmental degradation in harsh operating conditions, obsolescence of certain components over time, and the complexity of its software requiring frequent updates. These system-level risks directly translate into risks for the support services contract. For instance, unexpected vulnerabilities or performance degradation could necessitate more frequent or intensive maintenance, potentially increasing costs beyond initial projections. Similarly, reliance on older technology might lead to supply chain challenges for replacement parts, impacting repair times and overall system availability.

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

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: $39,988,459

Exercised Options: $39,988,459

Current Obligation: $39,707,713

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $16,771,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56KGY17D0005

IDV Type: IDC

Timeline