DoD awards $145M contract for 6 AN/TPQ-53 radars to Lockheed Martin for Romania
Contract Overview
Contract Amount: $144,943,712 ($144.9M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2021-08-12
End Date: 2026-08-10
Contract Duration: 1,824 days
Daily Burn Rate: $79.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS LETTER CONTRACT W56KGY-21-C-0010 TO PROCURE 6 AN/TPQ-53 RADARS FOR THE GOV. OF ROMANIA.
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $144.9 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS LETTER CONTRACT W56KGY-21-C-0010 TO PROCURE 6 AN/TPQ-53 RADARS FOR THE GOV. OF ROMANIA. Key points: 1. This contract is for the procurement of advanced radar systems for a foreign government. 2. The sole awardee is Lockheed Martin Corporation, a major defense contractor. 3. The contract value is substantial, indicating a significant investment in defense capabilities. 4. The sector is defense manufacturing, specifically radar systems.
Value Assessment
Rating: good
The contract value of $144,943,712.42 for 6 radars appears reasonable given the advanced nature of the AN/TPQ-53 system. Benchmarking against similar advanced radar procurements would provide a more precise assessment, but the price per unit is likely competitive for this specialized equipment.
Cost Per Unit: $24,157,285.40
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited source procurement. This could be due to specific requirements, existing sole-source relationships, or unique capabilities of the awarded contractor. Without competition, the government may not have achieved the best possible price.
Taxpayer Impact: Taxpayer funds are being used to procure advanced defense equipment for an allied nation, potentially enhancing regional security and strengthening international partnerships.
Public Impact
Enhances Romania's defense capabilities with advanced radar technology. Strengthens international alliances through military equipment provision. Supports the defense industrial base through a significant contract award. Potential implications for regional security and geopolitical stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Foreign military sales can be complex to manage.
- Dependence on a single contractor for critical technology.
Positive Signals
- Provides advanced defense capabilities to an ally.
- Supports a key defense contractor and its supply chain.
- Fulfills a specific foreign military sales requirement.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of advanced radar and surveillance systems. Spending in this area is driven by national security needs, technological advancements, and geopolitical considerations. Benchmarks for similar high-tech defense procurements are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no specific information provided regarding subcontracting opportunities for small businesses on this particular award. Large defense contracts often involve extensive supply chains where small businesses can play a role, but this is not explicitly detailed here.
Oversight & Accountability
The Department of Defense, through the Department of the Army, is responsible for overseeing this contract. Oversight would focus on ensuring timely delivery, adherence to specifications, and proper financial management. The foreign military sales aspect may involve additional layers of inter-agency and international coordination.
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
- Limited competition
- Sole-source award
- Foreign military sale
- High contract value
- Long contract duration
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $144.9 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS LETTER CONTRACT W56KGY-21-C-0010 TO PROCURE 6 AN/TPQ-53 RADARS FOR THE GOV. OF ROMANIA.
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 $144.9 million.
What is the period of performance?
Start: 2021-08-12. End: 2026-08-10.
What specific technical capabilities does the AN/TPQ-53 radar offer that justify a limited competition award?
The AN/TPQ-53 is a counter-battery radar system designed to detect and track incoming artillery, rocket, and mortar fire, providing early warning and targeting data. Its advanced capabilities likely include rapid deployment, high accuracy, and integration with command and control systems, which may be unique or difficult to replicate, thus justifying a limited competition approach based on specific technical requirements.
What are the potential risks associated with procuring advanced military hardware for a foreign government through a sole-source contract?
Risks include potential overpayment due to lack of competitive pricing, delays in delivery if the sole source faces production issues, and geopolitical implications if the technology transfer is sensitive. Ensuring proper oversight of funds and adherence to delivery schedules is crucial. Additionally, reliance on a single supplier for critical defense technology can create long-term dependencies.
How does this contract contribute to the overall effectiveness of Romania's defense posture and its interoperability with NATO forces?
By providing advanced counter-battery radar, this contract significantly enhances Romania's ability to detect and respond to indirect fire threats, improving soldier survivability and operational effectiveness. The AN/TPQ-53's potential interoperability with NATO systems ensures seamless communication and coordinated defense efforts, strengthening the collective security of the alliance.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $144,943,712
Exercised Options: $144,943,712
Current Obligation: $144,943,712
Subaward Activity
Number of Subawards: 163
Total Subaward Amount: $34,937,728
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-12
Current End Date: 2026-08-10
Potential End Date: 2026-08-10 12:08:00
Last Modified: 2025-10-29
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