DoD awards $39.4M for AN/TPQ-53 radar retrofit kits to Lockheed Martin

Contract Overview

Contract Amount: $39,400,000 ($39.4M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-03-03

End Date: 2023-06-30

Contract Duration: 849 days

Daily Burn Rate: $46.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE PURPOSE OF THIS DELIVERY ORDER W56KGY-21-F-0028 IS TO PROCURE 13 GALLIUM NITRIDE RETROFIT KITS FOR THE AN/TPQ-53 RADAR SYSTEM.

Place of Performance

Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $39.4 million to LOCKHEED MARTIN CORPORATION for work described as: THE PURPOSE OF THIS DELIVERY ORDER W56KGY-21-F-0028 IS TO PROCURE 13 GALLIUM NITRIDE RETROFIT KITS FOR THE AN/TPQ-53 RADAR SYSTEM. Key points: 1. Value-for-money assessment pending detailed cost analysis and benchmarking. 2. Sole-source procurement raises questions about competitive pricing. 3. Risk indicators include potential for cost overruns in sole-source contracts. 4. Performance context is the modernization of critical radar systems. 5. Sector positioning within defense electronics manufacturing. 6. The contract supports the upgrade of essential military surveillance technology.

Value Assessment

Rating: fair

The contract value of $39.4 million for 13 retrofit kits requires further analysis to benchmark against similar procurements. Without competitive bidding, it is difficult to definitively assess value for money. The firm fixed-price structure offers some cost certainty, but the absence of competition may have led to a higher price than a competed award.

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. The rationale for sole-sourcing is not provided in the available data. A lack of competition limits price discovery and may result in less favorable terms for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially increasing the overall cost of the radar system upgrades.

Public Impact

The U.S. Army benefits from enhanced radar system capabilities. Services delivered include the procurement of 13 Gallium Nitride retrofit kits. Geographic impact is primarily on military installations utilizing the AN/TPQ-53 system. Workforce implications may involve specialized technicians for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to sole-source award.
Lack of transparency in the procurement process.
Dependence on a single contractor for critical system upgrades.

Positive Signals

Procurement of essential technology for national defense.
Firm fixed-price contract provides cost predictability.
Supports modernization of existing military hardware.

Sector Analysis

This contract falls within the defense electronics manufacturing sector, specifically focusing on radar systems. The market for military radar technology is characterized by high barriers to entry and significant government investment. Comparable spending benchmarks would involve other large-scale defense system upgrade contracts.

Small Business Impact

The provided data does not indicate any small business set-aside provisions or subcontracting plans. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Lockheed Martin engages small businesses for subcontracting opportunities, which is not specified.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure. Transparency is limited by the sole-source nature of the award, and Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

AN/TPQ-53 Radar System
Defense Radar Modernization Programs
Military Communications and Surveillance Equipment

Risk Flags

Sole-source award may indicate lack of competition.
Potential for above-market pricing due to lack of competition.
Limited transparency in procurement justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.4 million to LOCKHEED MARTIN CORPORATION. THE PURPOSE OF THIS DELIVERY ORDER W56KGY-21-F-0028 IS TO PROCURE 13 GALLIUM NITRIDE RETROFIT KITS FOR THE AN/TPQ-53 RADAR SYSTEM.

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 $39.4 million.

What is the period of performance?

Start: 2021-03-03. End: 2023-06-30.

What is the specific technical advantage of Gallium Nitride (GaN) retrofit kits for the AN/TPQ-53 radar system?

Gallium Nitride (GaN) is a semiconductor material known for its high power efficiency, high-frequency operation, and robustness compared to traditional materials like Gallium Arsenide (GaAs) or Silicon. For the AN/TPQ-53 radar system, GaN retrofit kits are likely intended to enhance performance characteristics such as increased power output, improved signal processing capabilities, greater reliability, and potentially a smaller physical footprint or reduced power consumption. These enhancements are crucial for modern military radar systems, which require superior detection ranges, better target discrimination, and improved resistance to electronic countermeasures.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For the AN/TPQ-53 radar system, this could be due to proprietary technology, unique integration requirements, or the need for specialized expertise held exclusively by Lockheed Martin Corporation, the original equipment manufacturer. The government may have determined that competition was not feasible or would not result in a better value due to the specific nature of the retrofit kits and their integration with the existing radar platform. However, without a formal justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), the precise reasons remain speculative.

How does the $39.4 million cost for 13 retrofit kits compare to market rates or previous procurements?

Benchmarking the cost of $39.4 million for 13 retrofit kits (approximately $3.03 million per kit) is challenging without access to detailed cost breakdowns or comparable contract data. As a sole-source award, direct comparison to market rates is difficult, as competitive pressures are absent. If previous procurements of similar kits or upgrades for the AN/TPQ-53 system were competed, their pricing could serve as a benchmark. However, the specific nature of GaN retrofits and potential technological advancements might also influence pricing. A thorough value analysis would require examining the contractor's cost proposal and comparing it against independent government cost estimates or industry data for similar technological upgrades.

What are the potential risks associated with a sole-source procurement of critical defense equipment?

Sole-source procurements carry several risks for the government. Primarily, the absence of competition can lead to higher prices than might be achieved through a competitive bidding process, potentially resulting in less value for taxpayer money. There's also a risk of contractor complacency, where the lack of competitive pressure might reduce incentives for efficiency or innovation. Furthermore, sole-sourcing can create vendor lock-in, making it difficult and costly to switch providers or integrate alternative solutions in the future. For critical defense equipment, this dependence on a single supplier can also pose supply chain risks if the contractor faces production issues or financial instability.

What is the expected impact of these radar system upgrades on the U.S. Army's operational capabilities?

The upgrade of the AN/TPQ-53 radar system with Gallium Nitride (GaN) retrofit kits is expected to significantly enhance the U.S. Army's operational capabilities. The AN/TPQ-53 is a counter-battery radar system used for detecting and tracking enemy artillery, rocket, and mortar fire. Improvements from GaN technology, such as increased power and efficiency, can lead to longer detection ranges, faster tracking, and more accurate threat identification. This translates to improved early warning times, better situational awareness for ground forces, and enhanced protection against indirect fire attacks, ultimately contributing to mission success and soldier safety.

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: FIRM FIXED PRICE (J)

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: $39,400,000

Exercised Options: $39,400,000

Current Obligation: $39,400,000

Subaward Activity

Number of Subawards: 96

Total Subaward Amount: $22,477,199

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