DoD Awards $379M Contract to Lockheed Martin for AN/TPQ-53 Radars for Ukraine
Contract Overview
Contract Amount: $379,103,725 ($379.1M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-10-27
End Date: 2026-04-30
Contract Duration: 1,281 days
Daily Burn Rate: $295.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UKRAINE LETTER CONTRACT FOR SIXTEEN AN/TPQ-53 RADAR SYSTEMS, TWO DDREX SYSTEM MODIFICATIONS, AND RELATED SUPPLIES AND SERVICES.
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $379.1 million to LOCKHEED MARTIN CORPORATION for work described as: UKRAINE LETTER CONTRACT FOR SIXTEEN AN/TPQ-53 RADAR SYSTEMS, TWO DDREX SYSTEM MODIFICATIONS, AND RELATED SUPPLIES AND SERVICES. Key points: 1. This contract supports Ukraine's defense needs with advanced radar technology. 2. Lockheed Martin is the sole provider, raising questions about competition. 3. The firm fixed-price contract aims to control costs, but the lack of competition is a risk. 4. The sector is critical for national security and international aid.
Value Assessment
Rating: good
The contract value of $379 million for sixteen radar systems and modifications appears reasonable given the advanced technology and sole-source nature. Benchmarking against similar advanced radar systems is difficult due to proprietary information and specific mission requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specific nature of the AN/TPQ-53 system and the urgent need for support to Ukraine. The lack of competition limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: Taxpayers may bear a higher cost due to the sole-source award, but the strategic importance of providing this equipment to Ukraine is a significant factor.
Public Impact
Enhances Ukraine's ability to detect and counter threats. Supports U.S. foreign policy objectives and international security. Provides critical military hardware to an allied nation. Demonstrates U.S. commitment to supporting partners facing aggression.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in sole-source contracts
- Urgency of delivery may impact thoroughness of oversight
Positive Signals
- Supports a key ally in a critical geopolitical situation
- Utilizes advanced, proven radar technology
- Firm fixed-price contract structure
Sector Analysis
This contract falls within the Defense Industrial Base, specifically in the manufacturing of advanced radar and detection systems. Spending in this sector is often high due to the technological sophistication and strategic importance of the equipment.
Small Business Impact
This contract was awarded directly to Lockheed Martin Corporation, a large defense contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight will be crucial to ensure timely delivery, quality of the systems, and adherence to the firm fixed-price terms, especially given the sole-source nature.
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 award limits price competition.
- Potential for cost escalation if unforeseen issues arise.
- Dependency on a single contractor for critical defense technology.
- Geopolitical risks associated with delivery to a conflict zone.
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 $379.1 million to LOCKHEED MARTIN CORPORATION. UKRAINE LETTER CONTRACT FOR SIXTEEN AN/TPQ-53 RADAR SYSTEMS, TWO DDREX SYSTEM MODIFICATIONS, AND RELATED SUPPLIES AND SERVICES.
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 $379.1 million.
What is the period of performance?
Start: 2022-10-27. End: 2026-04-30.
What is the specific justification for the sole-source award, and were any alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For advanced systems like the AN/TPQ-53, the specialized nature of the technology and the urgent requirement to support Ukraine likely led to this determination. Further review of the contract's justification documentation would be needed to confirm specific details and alternatives explored.
How does the per-unit cost of the AN/TPQ-53 radar systems compare to similar systems, considering the lack of competitive bidding?
Without competitive bidding, it is challenging to establish a precise benchmark for the per-unit cost. However, the firm fixed-price contract aims to mitigate cost risks. The Department of Defense would have conducted internal cost analyses or used historical data for similar systems to ensure the price is fair and reasonable, though transparency is limited in sole-source awards.
What are the key performance metrics and oversight mechanisms in place to ensure the effectiveness and timely delivery of these radar systems?
Key performance metrics would likely include system reliability, detection range, accuracy, and delivery schedules. Oversight mechanisms would involve regular progress reports from Lockheed Martin, quality assurance inspections, and potentially joint reviews with Ukrainian forces. The contract's terms and conditions would outline specific deliverables and acceptance criteria.
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
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: $379,103,725
Exercised Options: $379,103,725
Current Obligation: $379,103,725
Subaward Activity
Number of Subawards: 476
Total Subaward Amount: $171,434,997
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56KGY22D0001
IDV Type: IDC
Timeline
Start Date: 2022-10-27
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-14
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