DoD Funds $121.7M for Longbow LLC Radar Electronic Units, Raising Concerns Over Competition

Contract Overview

Contract Amount: $121,746,962 ($121.7M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-03

End Date: 2019-10-31

Contract Duration: 1,519 days

Daily Burn Rate: $80.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: FUNDING OF ADVANCE PROCUREMENT FOR 67 RADAR ELECTRONIC UNITS (REUS) AND SPARES FOR LOTS 5-6B FULL RATE PRODUCTION (FRP).

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $121.7 million to LONGBOW LLC for work described as: FUNDING OF ADVANCE PROCUREMENT FOR 67 RADAR ELECTRONIC UNITS (REUS) AND SPARES FOR LOTS 5-6B FULL RATE PRODUCTION (FRP). Key points: 1. Significant funding allocated to a single contractor for critical radar components. 2. Lack of competition raises questions about price reasonableness and potential overspending. 3. Advance procurement for full-rate production suggests a long-term commitment to this system. 4. The sector is characterized by high technological complexity and specialized manufacturing.

Value Assessment

Rating: questionable

The contract value of $121.7M for 67 REUs and spares is difficult to assess without competitive benchmarks. The fixed-price incentive structure aims to control costs, but the absence of competition limits price discovery.

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 as there is no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition for this substantial funding could result in taxpayers paying more than necessary for these critical radar components.

Public Impact

Ensures continued production of advanced radar systems for military operations. Potential for increased costs due to sole-source award impacts overall defense budget. Supports a key defense contractor and its supply chain. Lack of transparency in pricing due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Warning Flags

Sole-source award
Advance procurement without clear competition
High contract value

Positive Signals

Supports critical defense capability
Fixed-price incentive contract aims for cost control

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for defense readiness. Spending in this specialized sector often involves high R&D costs and limited suppliers, making competition challenging but essential for value.

Small Business Impact

The contract was awarded to Longbow LLC, a major defense contractor. There is no indication that small businesses were involved in this specific procurement, which is common for large, specialized defense systems.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Future procurements should explore competitive strategies to mitigate cost risks.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in cost justification
Long-term financial commitment without competitive validation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $121.7 million to LONGBOW LLC. FUNDING OF ADVANCE PROCUREMENT FOR 67 RADAR ELECTRONIC UNITS (REUS) AND SPARES FOR LOTS 5-6B FULL RATE PRODUCTION (FRP).

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 $121.7 million.

What is the period of performance?

Start: 2015-09-03. End: 2019-10-31.

What is the justification for not competing this significant advance procurement contract?

The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent need. However, for advance procurement of production lots, competition is usually sought to ensure best value.

What are the potential cost overruns associated with this sole-source award?

Without competitive bidding, the potential for cost overruns is elevated. The fixed-price incentive contract aims to mitigate this by sharing savings or overruns, but the baseline price is set without market validation, increasing the risk of paying above fair market value.

How does this funding align with the overall effectiveness and modernization goals of the Army's radar systems?

This funding supports the full-rate production of radar electronic units, indicating a commitment to the operational effectiveness and modernization of the Army's radar capabilities. Advance procurement ensures timely delivery for subsequent production phases, crucial for maintaining technological superiority.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 5600 W SAND LAKE RD, ORLANDO, FL, 32819

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $121,746,962

Exercised Options: $121,746,962

Current Obligation: $121,746,962

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline