DoD awards $351M for Saudi Arabia Fire Control Radar Systems and Support to Longbow LLC

Contract Overview

Contract Amount: $35,126,119 ($35.1M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2007-05-24

End Date: 2012-06-30

Contract Duration: 1,864 days

Daily Burn Rate: $18.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PREDOMINANT - SAUDI ARABIA FIRE CONTROL RADAR (FCR) SYSTEMS AND SUPPORT.

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.1 million to LONGBOW LLC for work described as: PREDOMINANT - SAUDI ARABIA FIRE CONTROL RADAR (FCR) SYSTEMS AND SUPPORT. Key points: 1. Contract awarded as 'Not Available for Competition', raising questions about market exploration. 2. Longbow LLC, the sole awardee, suggests a lack of broader industry engagement. 3. The contract duration of 1864 days indicates a long-term commitment for critical systems. 4. Fixed-price contract type aims to control costs, but initial award circumstances warrant scrutiny. 5. Awarded by the Department of the Army, this contract supports foreign military sales. 6. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, potentially related to integration or support.

Value Assessment

Rating: questionable

The total award amount of $351,261,190 for Fire Control Radar (FCR) systems and support is substantial. Without comparable contract data for similar FCR systems or specific support packages, a direct value-for-money assessment is challenging. The 'Not Available for Competition' status inherently limits the ability to benchmark pricing against market alternatives. The firm fixed-price contract type suggests an attempt to cap costs, but the absence of competitive pressure means the government may not have secured the most economical price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed. The 'Not Available for Competition' (NA) code indicates that the agency determined that only one source was capable of satisfying the requirement. This lack of competition limits the opportunity for price discovery and potentially leads to higher costs for the government compared to a fully competed procurement.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. The government did not leverage market forces to drive down costs for these critical radar systems and support.

Public Impact

The primary beneficiaries are the Saudi Arabian armed forces, receiving advanced fire control radar systems and associated support. The services delivered include the provision and maintenance of sophisticated radar technology. The geographic impact is primarily focused on Saudi Arabia, enhancing its defense capabilities. Workforce implications may involve specialized technical personnel for system integration, training, and maintenance, potentially both within the US and abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Lack of transparency in the justification for 'Not Available for Competition'.
Long contract duration could lead to cost overruns if not managed effectively.
Potential for vendor lock-in given the specialized nature of the equipment.

Positive Signals

Firm fixed-price contract provides cost certainty for the awarded scope.
Award to a single, potentially specialized vendor may ensure specific technical expertise.
Supports critical foreign military sales objectives for a key ally.

Sector Analysis

The defense sector, particularly focusing on advanced radar and electronic warfare systems, is characterized by high R&D costs, long product cycles, and significant barriers to entry. Contracts like this, often involving specialized technology and foreign military sales, are common. The market size for such sophisticated defense equipment is global, with major players often engaging in direct sales or government-to-government agreements. Benchmarking spending requires comparing against similar advanced radar systems or integrated defense solutions, which are typically high-value, low-volume procurements.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The nature of advanced defense systems like fire control radars often involves large, prime contractors with specialized capabilities, potentially limiting the direct involvement of small businesses in the prime contract itself. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics and delivery schedules. Transparency may be limited due to the sole-source nature and foreign military sales context. Inspector General jurisdiction would apply to allegations of fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales (FMS)
Advanced Radar Systems
Electronic Warfare Systems
Defense Article Procurement
Aircraft Component Manufacturing

Risk Flags

Sole-source award
Lack of competition justification
Potential for inflated pricing
Long-term commitment without competitive review

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.1 million to LONGBOW LLC. PREDOMINANT - SAUDI ARABIA FIRE CONTROL RADAR (FCR) SYSTEMS AND SUPPORT.

Who is the contractor on this award?

The obligated recipient is LONGBOW 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 $35.1 million.

What is the period of performance?

Start: 2007-05-24. End: 2012-06-30.

What specific Fire Control Radar (FCR) systems are being procured under this contract, and what are their key capabilities?

The contract specifies 'SAUDI ARABIA FIRE CONTROL RADAR (FCR) SYSTEMS AND SUPPORT'. While the exact model or designation of the FCR systems is not detailed in the provided data, Fire Control Radars are sophisticated systems designed to detect, track, and guide weapons onto targets. They are critical components of air defense and combat systems. Given the awardee (Longbow LLC) and the context of military sales, these systems likely represent advanced technology, potentially integrated with aircraft or ground-based platforms. Further details on the specific capabilities, such as target acquisition range, tracking accuracy, multi-target engagement, and resistance to electronic countermeasures, would require access to classified or more detailed contract documentation.

What is the justification for awarding this contract as 'Not Available for Competition' to Longbow LLC?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION' (NA). This classification typically implies that the agency determined only one source was reasonably available or capable of meeting the requirement. Reasons for such a determination can include unique proprietary technology, essential follow-on support for existing systems where only the original manufacturer can provide it, or urgent and compelling circumstances where competition is not feasible. Without the specific justification document filed by the Department of the Army, the precise rationale remains undisclosed. However, sole-source awards generally raise concerns about potential lack of price competition and limited market exploration.

How does the $351 million contract value compare to typical spending on similar defense systems or support services?

Directly comparing the $351 million contract value for Saudi Arabia's Fire Control Radar (FCR) systems and support is challenging without specific benchmarks for comparable FCR systems or support packages. Advanced radar systems are highly specialized and can vary significantly in cost based on technology, capabilities, and integration requirements. However, for context, major defense programs involving complex electronic systems and long-term support often run into hundreds of millions or even billions of dollars. The value of this contract appears substantial, reflecting the advanced nature of FCR technology. A more precise comparison would require analyzing the specific technical specifications of the FCR systems and benchmarking against other FMS contracts for similar equipment or against domestic US military procurements of comparable radar technology.

What is Longbow LLC's track record with the Department of Defense, particularly in providing radar systems?

Longbow LLC is a known entity in the defense sector, often associated with advanced targeting and sensor systems. While the provided data focuses on this specific contract, Longbow LLC has a history of supplying sophisticated defense technology. Their involvement in FCR systems suggests a capability in radar and associated electronics. A comprehensive assessment of their track record would involve reviewing their past performance on other DoD contracts, including delivery timeliness, quality of products/services, and adherence to budget. Their specialization in areas relevant to fire control and targeting likely positions them as a key supplier for such niche, high-technology defense requirements.

What are the potential risks associated with a long-term, sole-source contract for critical defense systems?

A long-term, sole-source contract for critical defense systems like Fire Control Radars presents several risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces less pressure to offer cost-effective solutions. Secondly, there's a risk of vendor lock-in, where the government becomes overly reliant on a single supplier, making future transitions or upgrades difficult and expensive. Thirdly, without competitive oversight, the contractor might have less incentive to innovate or improve performance beyond the contract's minimum requirements. Finally, the absence of multiple bidders can limit the government's options if the sole-source provider experiences financial difficulties, quality issues, or fails to meet delivery schedules, potentially jeopardizing the operational readiness of the supported military forces.

How does this contract align with broader US foreign policy and defense cooperation objectives in the Middle East?

This contract, as part of a Foreign Military Sale (FMS) to Saudi Arabia, directly aligns with US foreign policy and defense cooperation objectives in the Middle East. Providing advanced defense capabilities like Fire Control Radar systems enhances the security and stability of key regional partners, which is a cornerstone of US strategy in the region. Such sales aim to bolster the defensive capabilities of allies to counter regional threats, promote interoperability with US forces, and maintain a balance of power. By equipping Saudi Arabia with modern radar technology, the US supports its partner's ability to defend its territory and interests, contributing to broader regional security architecture that the US seeks to influence and uphold.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 W SAND LAKE RD, ORLANDO, FL, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,126,119

Exercised Options: $35,126,119

Current Obligation: $35,126,119

Contract Characteristics

Cost or Pricing Data: YES

Timeline