DoD Awards $15.5M to Lockheed Martin for Counter Fire Radar System Support
Contract Overview
Contract Amount: $15,485,650 ($15.5M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2025-12-02
End Date: 2026-12-01
Contract Duration: 364 days
Daily Burn Rate: $42.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COUNTER FIRE TARGET ACQUISITION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT SERVICES (ICS) #6 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 $15.5 million to LOCKHEED MARTIN CORPORATION for work described as: COUNTER FIRE TARGET ACQUISITION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT SERVICES (ICS) #6 SERVICES AND SUPPORT. Key points: 1. Contract awarded to incumbent Lockheed Martin for critical radar system support. 2. High value contract for specialized defense technology. 3. Potential risk associated with sole-source procurement for advanced systems. 4. Spending falls within the IT and Defense sectors.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not closely managed. Benchmarking against similar sole-source support contracts for advanced radar systems is difficult due to proprietary data.
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 increases costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition for this sole-source contract may result in higher costs for taxpayers compared to a competitively bid award.
Public Impact
Ensures continued operational readiness of essential counter fire radar systems. Supports advanced military technology crucial for battlefield awareness. Maintains critical contractor expertise for system maintenance and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type carries inherent risk of cost overruns.
- Lack of small business participation noted.
Positive Signals
- Ensures continuity of essential defense system support.
- Leverages incumbent contractor's specialized knowledge.
- Supports critical national security capabilities.
Sector Analysis
This contract falls under the Defense sector, specifically for advanced radar system support. Spending benchmarks for sole-source support services of this nature are often high due to specialized requirements and limited contractor availability.
Small Business Impact
The data indicates no specific set-aside for small businesses in this contract. Given the specialized nature of the services and the sole-source award to a large corporation, small business participation is likely minimal.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers services effectively and efficiently. The Department of the Army's contracting office is responsible for monitoring performance and costs.
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 small business participation
- Potential for cost overruns
- Limited price discovery
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 $15.5 million to LOCKHEED MARTIN CORPORATION. COUNTER FIRE TARGET ACQUISITION RADAR SYSTEM (AN/TPQ-53) CONTRACTOR SUPPORT SERVICES (CSS) AND INTERIM CONTRACTOR SUPPORT SERVICES (ICS) #6 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 $15.5 million.
What is the period of performance?
Start: 2025-12-02. End: 2026-12-01.
What is the justification for the sole-source award, and has a thorough market analysis been conducted to confirm no other capable sources exist?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. A thorough market analysis is essential to validate these claims and ensure taxpayers are not disadvantaged by the absence of competition. Without this analysis, there's a risk of paying above-market rates.
How will the Department of the Army mitigate the cost risks associated with the Cost Plus Fixed Fee contract type for this specialized support?
Mitigation strategies for Cost Plus Fixed Fee (CPFF) contracts include robust oversight, detailed cost tracking, and clear performance metrics. The Army should establish stringent reporting requirements, conduct regular audits, and negotiate realistic fixed fees based on thorough cost analysis. Incentive clauses tied to performance and cost savings can also encourage efficiency and control expenditures.
What is the long-term strategy for ensuring competitive sourcing of these critical radar system support services to avoid perpetual sole-source awards?
The long-term strategy should involve proactive market research to identify potential future competitors and foster their development. This could include breaking down the requirement into smaller, more accessible components, encouraging technology transfer, or developing alternative systems. Planning for future competition, even with incumbent advantages, is key to achieving better value over time.
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: $15,485,650
Exercised Options: $15,485,650
Current Obligation: $15,485,650
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: 2025-12-02
Current End Date: 2026-12-01
Potential End Date: 2026-12-01 00:00:00
Last Modified: 2026-03-24
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