DoD Awards $145M for AN/TPQ-53 Radar Production to Lockheed Martin, Lacking Competition
Contract Overview
Contract Amount: $145,317,400 ($145.3M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2019-04-17
End Date: 2021-11-30
Contract Duration: 958 days
Daily Burn Rate: $151.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FULL RATE PRODUCTION OF AN/TPQ-53 COUNTER FIRE TARGET ACQUISITION RADAR SYSTEMS LOT 3
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $145.3 million to LOCKHEED MARTIN CORPORATION for work described as: FULL RATE PRODUCTION OF AN/TPQ-53 COUNTER FIRE TARGET ACQUISITION RADAR SYSTEMS LOT 3 Key points: 1. Significant investment in critical counter-fire radar technology. 2. Sole-source award to Lockheed Martin raises concerns about price discovery. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector focus on advanced defense electronics manufacturing.
Value Assessment
Rating: questionable
The contract value of $145.3 million for Lot 3 production of AN/TPQ-53 radar systems is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar advanced radar systems or previous lots.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Lockheed Martin, was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these radar systems, as there was no market pressure to drive down costs.
Public Impact
Enhances battlefield awareness and protection for US forces. Supports critical military operations by identifying enemy fire sources. Ensures continued availability of advanced radar technology for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for inflated pricing
- Lack of transparency in price negotiation
Positive Signals
- Acquisition of critical defense technology
- Supports warfighter capabilities
- Long-term production run
Sector Analysis
This contract falls within the defense electronics manufacturing sector, specifically focusing on advanced radar systems. Spending in this area is driven by national security needs and technological advancements in threat detection.
Small Business Impact
The awardee, Lockheed Martin Corporation, is a large prime contractor. There is no indication in the provided data whether small businesses were involved as subcontractors, which warrants further investigation.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing strategies. Oversight should focus on ensuring fair pricing and exploring future opportunities for competitive procurement.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source procurement limits competition.
- Potential for non-competitive pricing.
- Lack of transparency in price negotiation.
- No clear indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $145.3 million to LOCKHEED MARTIN CORPORATION. FULL RATE PRODUCTION OF AN/TPQ-53 COUNTER FIRE TARGET ACQUISITION RADAR SYSTEMS LOT 3
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 $145.3 million.
What is the period of performance?
Start: 2019-04-17. End: 2021-11-30.
What is the historical cost trend for AN/TPQ-53 radar systems across previous lots, and how does Lot 3's pricing compare?
Analyzing historical cost data from previous production lots is crucial for assessing the value of Lot 3. A significant price increase without justification, especially in a sole-source scenario, would be a red flag. Understanding the cost drivers and any technological upgrades incorporated in Lot 3 is essential for a fair comparison and to ensure taxpayers are not overpaying.
What are the specific justifications for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The Department of Defense should provide detailed reasoning, including market research conducted to confirm the absence of other capable sources. Exploring if a limited competition or other methods could have been employed would shed light on the necessity of this approach.
How does the performance and capability of the AN/TPQ-53 radar system compare to similar systems available on the market, and does this justify the sole-source procurement?
Benchmarking the AN/TPQ-53 against its peers is vital for understanding its technological edge and value proposition. If the system offers unique, indispensable capabilities not found elsewhere, it might partially justify a sole-source award. However, even with unique features, a thorough cost-benefit analysis is needed to ensure the price reflects true value and isn't inflated due to the lack of competition.
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: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $145,317,400
Exercised Options: $145,317,400
Current Obligation: $145,317,400
Subaward Activity
Number of Subawards: 371
Total Subaward Amount: $280,353,599
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
Start Date: 2019-04-17
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 12:11:00
Last Modified: 2023-08-08
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