DoD Awards $33.5M to Lockheed Martin for Terrestrial Spectrum Warfare System for European Command
Contract Overview
Contract Amount: $33,566,331 ($33.6M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-03-31
End Date: 2026-09-08
Contract Duration: 1,257 days
Daily Burn Rate: $26.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: UKRAINE CONTRACT IS IN SUPPORT OF PRODUCT MANAGER TERRESTRIAL SPECTRUM WARFARE ACQUISITION OF TERRESTRIAL LAYER SYSTEM BRIGADE COMBAT TEAM IN SUPPORT OF V CORPS AND UNITED STATES FORCES IN UNITED STATES EUROPEAN COMMAND
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $33.6 million to LOCKHEED MARTIN CORPORATION for work described as: UKRAINE CONTRACT IS IN SUPPORT OF PRODUCT MANAGER TERRESTRIAL SPECTRUM WARFARE ACQUISITION OF TERRESTRIAL LAYER SYSTEM BRIGADE COMBAT TEAM IN SUPPORT OF V CORPS AND UNITED STATES FORCES IN UNITED STATES EUROPEAN COMMAND Key points: 1. This contract supports the acquisition of a Terrestrial Layer System for Brigade Combat Teams. 2. The system is intended for use by V Corps and United States Forces in European Command. 3. The award is a definitive contract with a firm fixed price. 4. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code.
Value Assessment
Rating: fair
The $33.5 million award for a specialized terrestrial spectrum warfare system appears to be within a reasonable range for advanced R&D and acquisition of complex military technology. Benchmarking is difficult without specific system capabilities, but similar advanced electronic warfare or communication systems can range from tens to hundreds of millions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The justification for sole-source is not provided but likely relates to unique capabilities or existing platform integration.
Taxpayer Impact: Taxpayer funds are being used for a critical defense capability, but the lack of competition raises concerns about cost-effectiveness.
Public Impact
Enhances US military communication and electronic warfare capabilities in Europe. Supports ongoing operations and readiness for US forces in the European theater. Contributes to the technological advantage of US military assets. Potential for technology transfer and dual-use applications in the future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated costs.
- Sole-source award requires strong justification for value.
- Long contract duration increases risk of scope creep or obsolescence.
Positive Signals
- Supports critical European Command mission requirements.
- Awarded to a major defense contractor with proven capabilities.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541715. Spending in this sector is crucial for maintaining technological superiority but can be prone to cost overruns due to the inherent uncertainties of R&D.
Small Business Impact
This contract was awarded to Lockheed Martin Corporation, a large defense contractor. There is no indication of small business participation in this specific award, which is common for large, sole-source prime contracts.
Oversight & Accountability
Oversight will be critical to ensure the effective use of funds and the successful delivery of the Terrestrial Layer System. The Department of the Army is responsible for contract administration, and regular performance reviews will be necessary.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pressure on price.
- Potential for cost overruns in complex R&D projects.
- Risk of technological obsolescence over the contract duration.
- Dependence on a single contractor for critical capability.
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.6 million to LOCKHEED MARTIN CORPORATION. UKRAINE CONTRACT IS IN SUPPORT OF PRODUCT MANAGER TERRESTRIAL SPECTRUM WARFARE ACQUISITION OF TERRESTRIAL LAYER SYSTEM BRIGADE COMBAT TEAM IN SUPPORT OF V CORPS AND UNITED STATES FORCES IN UNITED STATES EUROPEAN COMMAND
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 $33.6 million.
What is the period of performance?
Start: 2023-03-31. End: 2026-09-08.
What is the specific justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for compatibility with existing systems. Without access to the specific justification document (e.g., J&A), it's impossible to detail the rationale. Price reasonableness is usually determined through cost analysis, comparison to similar historical contracts, or independent government cost estimates, even in sole-source scenarios.
What are the key performance metrics and milestones for this Terrestrial Layer System, and how will their achievement be measured to ensure effectiveness?
Key performance metrics would likely include system reliability, interoperability with existing networks, signal range and clarity, cybersecurity robustness, and ease of deployment/operation. Milestones would be tied to design reviews, prototype testing, production phases, and final delivery. Effectiveness will be measured through rigorous testing, operational assessments, and feedback from end-users within V Corps and EUCOM.
Given the long duration (over 3 years), what measures are in place to mitigate the risk of technological obsolescence or significant cost increases due to inflation?
Mitigation strategies for obsolescence might include incorporating modular designs for easier upgrades, specifying components with long-term availability, and building flexibility into the system architecture. Cost increase mitigation could involve clauses for economic price adjustments (EPAs) if applicable, or careful upfront cost estimation and contingency planning within the firm fixed price.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W56KGY23R0008
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: $33,566,331
Exercised Options: $33,566,331
Current Obligation: $33,566,331
Subaward Activity
Number of Subawards: 85
Total Subaward Amount: $15,285,838
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-03-31
Current End Date: 2026-09-08
Potential End Date: 2026-09-08 12:09:00
Last Modified: 2025-04-22
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