DoD Awards $625M for Radar Reconnaissance Aerostats, Supporting Army Readiness Through 2030
Contract Overview
Contract Amount: $624,925,209 ($624.9M)
Contractor: Tcom, L.P.
Awarding Agency: Department of Defense
Start Date: 2025-10-01
End Date: 2030-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $342.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS ORDER SUPPORTS THE PRODUCTION AND DELIVERY OF AIRSPACE AND SURFACE RADAR RECONNAISSANCE AEROSTAT SYSTEMS AND ACCOMPANYING PRODUCT SUPPORT PACKAGE REQUIRED TO FIELD & MAINTAIN SYSTEM READINESS AND OPERATIONAL CAPABILITY.
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $624.9 million to TCOM, L.P. for work described as: THIS ORDER SUPPORTS THE PRODUCTION AND DELIVERY OF AIRSPACE AND SURFACE RADAR RECONNAISSANCE AEROSTAT SYSTEMS AND ACCOMPANYING PRODUCT SUPPORT PACKAGE REQUIRED TO FIELD & MAINTAIN SYSTEM READINESS AND OPERATIONAL CAPABILITY. Key points: 1. Significant investment in advanced surveillance technology for the Army. 2. Contract awarded to TCOM, L.P. for aerostat systems and product support. 3. Focus on system readiness and operational capability highlights critical defense need. 4. Long-term contract (5 years) indicates sustained operational requirements.
Value Assessment
Rating: good
The $625 million award for aerostat systems appears reasonable given the complex engineering and long-term support required. Benchmarking against similar large-scale defense surveillance contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the initial pool of bidders. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are allocated for critical national defense infrastructure, aiming to enhance surveillance capabilities.
Public Impact
Enhanced border security and threat detection capabilities. Improved situational awareness for military operations. Potential for job creation in aerospace and engineering sectors. Long-term commitment to maintaining advanced defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about optimal pricing.
- Long duration could lead to scope creep or cost overruns if not managed tightly.
- Reliance on a single vendor for critical systems.
Positive Signals
- Addresses a clear and critical need for advanced reconnaissance.
- Focus on system readiness and operational capability ensures immediate utility.
- Long-term contract provides stability for production and support.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense systems. Spending in this area is driven by national security priorities and technological advancements in surveillance and reconnaissance.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the performance of this large contract.
Oversight & Accountability
The Department of the Army is the contracting agency, implying established oversight mechanisms. However, the limited competition aspect warrants close monitoring to ensure fair pricing and effective performance throughout the contract's duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Long contract duration increases risk of cost escalation.
- Dependence on a single contractor for critical systems.
- Potential for technological obsolescence over the contract period.
- Need for robust oversight to ensure performance and value.
Tags
engineering-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $624.9 million to TCOM, L.P.. THIS ORDER SUPPORTS THE PRODUCTION AND DELIVERY OF AIRSPACE AND SURFACE RADAR RECONNAISSANCE AEROSTAT SYSTEMS AND ACCOMPANYING PRODUCT SUPPORT PACKAGE REQUIRED TO FIELD & MAINTAIN SYSTEM READINESS AND OPERATIONAL CAPABILITY.
Who is the contractor on this award?
The obligated recipient is TCOM, L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $624.9 million.
What is the period of performance?
Start: 2025-10-01. End: 2030-09-30.
What specific technical capabilities do these radar reconnaissance aerostats provide that justify the significant investment and limited competition?
These aerostat systems are designed for persistent airspace and surface radar reconnaissance, offering continuous surveillance over large areas. Their unique capabilities likely include long-endurance flight, advanced radar processing, and the ability to operate in challenging environments, providing critical intelligence that may not be achievable with other platforms. This specialized nature often necessitates specific expertise, influencing the procurement strategy.
How will the Department of the Army ensure cost-effectiveness and prevent potential overruns given the long-term nature and limited competition of this contract?
The Army can employ several strategies, including robust performance metrics, regular cost reviews, and incentivizing efficient performance. Establishing clear milestones and deliverables tied to payments, along with competitive re-evaluation clauses if feasible, can help manage costs. Strong contract management and oversight are crucial to ensure TCOM, L.P. meets its obligations effectively and within budgetary constraints.
What are the potential risks associated with relying on a single vendor for the production and long-term support of such critical defense systems?
Sole-source or limited-source reliance can create vulnerabilities, including supply chain disruptions, lack of competitive pressure on pricing and innovation, and vendor lock-in. If TCOM, L.P. faces financial difficulties or operational issues, it could significantly impact the Army's readiness. Mitigating these risks involves strong contract terms, contingency planning, and potentially fostering alternative solutions or domestic industrial base capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7115 THOMAS EDISON DRIVE, COLUMBIA, MD, 21046
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $624,925,209
Exercised Options: $624,925,209
Current Obligation: $624,925,209
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56KGY25D0008
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2030-09-30
Potential End Date: 2030-09-30 12:09:00
Last Modified: 2025-11-25
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