DoD awards $8.2M for Q-50 RADAR support to SRCTEC, LLC under a sole-source contract

Contract Overview

Contract Amount: $8,247,354 ($8.2M)

Contractor: Srctec, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-17

End Date: 2026-09-30

Contract Duration: 378 days

Daily Burn Rate: $21.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: Q-50 RADAR SUPPORT FOR REPUBLIC OF GEORGIA

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $8.2 million to SRCTEC, LLC for work described as: Q-50 RADAR SUPPORT FOR REPUBLIC OF GEORGIA Key points: 1. Contract awarded to SRCTEC, LLC for radar support services. 2. The contract is a firm-fixed-price delivery order. 3. Performance period extends from September 17, 2025, to September 30, 2026. 4. The contract was not competed, raising questions about potential cost savings. 5. SRCTEC, LLC is the sole awardee, indicating a lack of competitive bidding. 6. The contract falls under the manufacturing of search, detection, navigation, guidance, aeronautical, and nautical systems. 7. The contract value is approximately $8.25 million. 8. The contract is a delivery order, suggesting it's part of a larger existing agreement or framework.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without competitive bids. As a sole-source award, there's no direct comparison to market rates derived from a competitive process. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition means potential savings from a bidding process are foregone. Further analysis would require understanding the specific nature of the Q-50 RADAR support and whether alternative solutions or contractors exist.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition means the government did not benefit from the price discovery and potential cost reductions that a competitive bidding process usually provides. It is crucial to understand the justification for this sole-source award to ensure it was appropriate and that the government secured fair pricing.

Taxpayer Impact: Taxpayers may have paid a higher price than they would have in a competitive environment. The absence of multiple bids limits the government's ability to negotiate the best possible terms and pricing.

Public Impact

The primary beneficiary is the Department of the Army, receiving critical radar support services. The services delivered are related to the manufacturing and support of advanced radar systems. The geographic impact is likely concentrated where the Q-50 RADAR systems are deployed or maintained. Workforce implications may include specialized technical roles for SRCTEC, LLC employees involved in radar support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-source procurement.
Potential for higher costs due to absence of competitive bidding.
Limited visibility into alternative solutions or technological advancements from other vendors.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
SRCTEC, LLC is likely a specialized provider with expertise in this specific radar system.
Contract ensures continued operational readiness of critical radar assets.

Sector Analysis

This contract falls within the broader "Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing" sector. This industry is characterized by high technological complexity and often involves specialized, niche capabilities. Spending in this sector is driven by defense modernization, aerospace advancements, and national security requirements. Comparable spending benchmarks would typically involve other contracts for advanced sensor systems, radar components, and related manufacturing services, often awarded to a limited number of highly specialized firms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The sole-source nature of the award further reduces opportunities for small businesses to participate in this specific procurement, either as prime contractors or subcontractors, unless they are part of SRCTEC, LLC's supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award; the justification for this procurement method would be the key document for assessing transparency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Radar Systems Procurement
Aeronautical and Nautical Instrument Manufacturing
Military Search and Detection Equipment
Department of Defense Supply Chain Management

Risk Flags

Sole-source award without clear justification.
Potential for above-market pricing due to lack of competition.
Dependency on a single vendor for critical radar support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.2 million to SRCTEC, LLC. Q-50 RADAR SUPPORT FOR REPUBLIC OF GEORGIA

Who is the contractor on this award?

The obligated recipient is SRCTEC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2025-09-17. End: 2026-09-30.

What is the specific justification for awarding this contract on a sole-source basis to SRCTEC, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as "only one responsible source and no other supplies or services will satisfy the agency requirements" (FAR 6.302-1), "national security" (FAR 6.302-7), or when "unusual and compelling urgency" (FAR 6.302-3) necessitates immediate action. For this contract, the justification would likely stem from SRCTEC, LLC possessing unique capabilities, proprietary technology, or essential knowledge related to the Q-50 RADAR system that cannot be replicated by other vendors. Without access to the official Justification and Approval (J&A) document, it is impossible to definitively state the reason, but it is presumed to be related to specialized technical expertise or proprietary system knowledge.

How does the $8.25 million contract value compare to historical spending on similar Q-50 RADAR support or comparable systems?

Direct historical spending comparisons for this specific Q-50 RADAR support contract are not available in the provided data. To conduct such a comparison, one would need access to historical contract databases and search for previous awards related to the Q-50 RADAR system or functionally equivalent radar systems procured by the Department of Defense. Factors influencing historical spending include the quantity of systems supported, the scope of services (e.g., maintenance, upgrades, spare parts), the duration of previous contracts, and the prevailing economic conditions and technological landscape at the time of award. Without this historical context, it is difficult to assess whether the current $8.25 million represents an increase, decrease, or stable level of investment for this type of support.

What are the potential risks associated with a sole-source award for critical radar support?

Sole-source awards for critical systems like radar support carry several potential risks. Firstly, the absence of competition can lead to inflated pricing, as the contractor may not feel pressured to offer the most cost-effective solution. Secondly, it can foster complacency, potentially reducing the incentive for the contractor to innovate or improve service quality over time. Thirdly, it creates a dependency on a single vendor, which can be problematic if that vendor experiences financial difficulties, undergoes mergers, or ceases operations. This dependency also limits the government's flexibility to switch to more advanced or cost-effective solutions if they become available from other sources. Finally, the lack of competitive benchmarking makes it harder for the government to objectively assess whether it is receiving fair value for its investment.

What is SRCTEC, LLC's track record with the Department of Defense, particularly concerning radar systems?

The provided data indicates SRCTEC, LLC is the contractor for this $8.25 million sole-source award for Q-50 RADAR support. To assess their track record, one would need to examine their contract history with the Department of Defense (DoD). This would involve searching contract databases for past awards to SRCTEC, LLC, noting the types of services rendered, contract values, performance periods, and any performance evaluations or past performance questionnaires. Specifically, looking for prior experience with radar systems, particularly the Q-50 or similar technologies, would be crucial. A positive track record would include successful delivery of services, adherence to schedules and budgets, and positive feedback from government agencies. Conversely, a history of performance issues, cost overruns, or contract disputes would raise concerns.

How does the firm-fixed-price contract type mitigate risks for the government in this sole-source scenario?

The firm-fixed-price (FFP) contract type is beneficial for the government, especially in a sole-source situation, as it shifts the majority of the cost risk to the contractor. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This provides the government with cost certainty, meaning they know the maximum amount they will pay for the specified goods or services. While the absence of competition might mean the initial price isn't the lowest possible, the FFP structure protects the government from unexpected cost increases that could arise from unforeseen technical challenges or material price fluctuations. The contractor is incentivized to manage their costs efficiently to maximize their profit margin within the fixed price.

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: 5801 E TAFT RD STE 7, SYRACUSE, NY, 13212

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: $8,247,354

Exercised Options: $8,247,354

Current Obligation: $8,247,354

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $785,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56KGY23D0002

IDV Type: IDC

Timeline