DoD Awards $75.5M for Counter Fire Target Acquisition Radar System Support to Lockheed Martin
Contract Overview
Contract Amount: $75,540,357 ($75.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-30
End Date: 2026-06-30
Contract Duration: 1,247 days
Daily Burn Rate: $60.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COUNTER FIRE TARGET ACQUISTION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT SERVICES (ICS) #5 SERVICES AND SUPPORT.
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $75.5 million to LOCKHEED MARTIN CORPORATION for work described as: COUNTER FIRE TARGET ACQUISTION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT SERVICES (ICS) #5 SERVICES AND SUPPORT. Key points: 1. This contract focuses on essential support services for a critical defense system. 2. Lockheed Martin is the sole provider, raising questions about competition. 3. The Cost Plus Fixed Fee structure requires careful monitoring for cost efficiency. 4. The sector is dominated by large defense contractors, limiting small business opportunities.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. Benchmarking against similar support contracts for complex radar systems is difficult without more granular data, but the total value suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential support services.
Public Impact
Ensures continued operational readiness of a key military asset. Supports advanced targeting capabilities for ground forces. Potential for increased costs due to sole-source award. Limited visibility into the specific services provided under this large contract.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of transparency on specific service breakdowns.
Positive Signals
- Ensures critical system availability.
- Supports national defense objectives.
- Long-term support for a complex system.
Sector Analysis
This contract falls within the Defense sector, specifically for advanced radar systems. Spending in this area is typically high due to the complexity and critical nature of the equipment. Benchmarks are difficult without specific system comparisons, but $75.5M for multi-year support is substantial.
Small Business Impact
The contract is awarded to Lockheed Martin, a large prime contractor, and there is no indication of small business participation. This is typical for highly specialized defense systems where large companies hold the primary contracts.
Oversight & Accountability
The Department of the Army is the awarding agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers necessary support services effectively and efficiently, especially given the sole-source nature of the award.
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
- Cost Plus Fixed Fee contract type
- Lack of competition
- Potential for cost overruns
- Limited small business participation
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.5 million to LOCKHEED MARTIN CORPORATION. COUNTER FIRE TARGET ACQUISTION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT SERVICES (ICS) #5 SERVICES AND SUPPORT.
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 $75.5 million.
What is the period of performance?
Start: 2023-01-30. End: 2026-06-30.
What specific performance metrics are in place to ensure the effectiveness of the contractor support services for the AN/TPQ-53 system?
Performance metrics are critical for a sole-source, cost-plus contract. While not detailed here, effective oversight would require clearly defined deliverables, response times for technical issues, system uptime targets, and potentially user feedback mechanisms. The government should have a robust system for tracking these metrics to ensure value for money and operational effectiveness.
How does the Department of Defense justify the sole-source award for these critical support services, and what steps are taken to mitigate potential cost increases?
Sole-source awards are typically justified when only one source can provide the required goods or services, often due to proprietary technology, unique expertise, or urgent needs. For this contract, the DoD likely cited Lockheed Martin's unique knowledge of the AN/TPQ-53 system. Mitigation strategies would include rigorous negotiation of the fixed fee, detailed cost analysis, and close monitoring of expenditures throughout the contract period.
What is the long-term strategy for acquiring support services for this radar system, and will future contracts be competed to ensure better pricing?
The long-term strategy is unclear from this award alone. While current support is sole-source, the DoD often aims to introduce competition for subsequent contracts, especially if system upgrades or modifications occur that could open the door for other providers. Future competition would depend on market dynamics, technological evolution, and strategic decisions regarding system sustainment and potential replacements.
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: COST PLUS FIXED FEE (U)
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: $81,726,658
Exercised Options: $75,540,357
Current Obligation: $75,540,357
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $11,985,247
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: 2023-01-30
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-11-17
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