DoD awards $15.5M for Taiwan fire control radar support, raising competition concerns

Contract Overview

Contract Amount: $15,518,886 ($15.5M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-01

End Date: 2027-07-31

Contract Duration: 2,433 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIRE CONTROL RADAR POST PRODUCTION SUPPORT SERVICES, TAIWAN

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to LONGBOW LLC for work described as: FIRE CONTROL RADAR POST PRODUCTION SUPPORT SERVICES, TAIWAN Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Longbow LLC, the sole awardee, has a history with this specific system. 3. The contract spans over six years, indicating a long-term need for these services. 4. The fixed-price contract type aims to control costs, but the lack of competition is a risk. 5. Services are for Taiwan, highlighting the geopolitical context of defense spending. 6. The contract value is substantial for specialized engineering services.

Value Assessment

Rating: questionable

Benchmarking the value for this specific fire control radar post-production support is challenging due to the sole-source nature of the award. Without competitive bids, it's difficult to ascertain if the $15.5 million represents a fair market price. However, the firm-fixed-price structure suggests an attempt to cap costs. Further analysis would require access to historical pricing for similar support contracts or internal cost estimates from the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Longbow LLC, was solicited. The justification for this approach is not detailed in the provided data, but it typically implies that only one source possesses the necessary expertise, technology, or is the incumbent provider with unique knowledge of the system. The lack of competition means taxpayers did not benefit from a bidding process that could drive down prices.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through market competition, potentially leading to higher expenditures for taxpayers.

Public Impact

The primary beneficiaries are the U.S. Army and potentially allied nations (Taiwan) relying on advanced fire control radar systems. Services delivered include post-production support, crucial for maintaining the operational readiness of critical defense equipment. The geographic impact is primarily focused on supporting U.S. military assets and allies abroad, with services likely managed from contractor facilities in Florida. Workforce implications include the employment of specialized engineers and technicians required for radar system maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award raises questions about the justification and potential for vendor lock-in.
Long contract duration could mask inefficiencies if not closely monitored.
Geopolitical context (Taiwan) adds complexity and potential for unforeseen requirements.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awardee (Longbow LLC) likely possesses specialized knowledge of the specific radar system.
Long-term support ensures continued operational readiness of critical defense assets.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting defense systems. The market for specialized defense system support is often characterized by high barriers to entry due to proprietary technology and security clearances. While the overall market size for engineering services is vast, contracts for specific, advanced military hardware like fire control radar are niche. Comparable spending benchmarks would likely be found within other Department of Defense contracts for similar specialized maintenance and sustainment services.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this contract. Therefore, there is no direct small business set-aside. Subcontracting opportunities for small businesses are not specified but are unlikely to be a primary focus given the sole-source nature and specialized requirements of the contract. This contract does not appear to directly benefit 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 inherent in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is limited due to the sole-source nature and lack of publicly available justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Procurement
Army Weapon Systems Support
Foreign Military Sales Support
Radar Systems Maintenance
Engineering Services Contracts

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Geopolitical sensitivity of support location (Taiwan)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to LONGBOW LLC. FIRE CONTROL RADAR POST PRODUCTION SUPPORT SERVICES, TAIWAN

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 $15.5 million.

What is the period of performance?

Start: 2020-12-01. End: 2027-07-31.

What is Longbow LLC's track record with fire control radar systems, particularly those used by the U.S. Army or its allies?

Longbow LLC has a demonstrated history of providing support services for defense systems. While specific details on their involvement with fire control radar systems are not fully elaborated in the provided data, their selection as the sole source for this $15.5 million contract for Taiwan suggests a recognized capability and potentially a long-standing relationship with the specific radar technology. Further investigation into their contract history with the Department of Defense and other government agencies would reveal the extent and nature of their expertise in this specialized area, including any prior performance issues or commendations.

How does the $15.5 million contract value compare to similar post-production support services for advanced radar systems?

Direct comparison of the $15.5 million contract value for fire control radar post-production support is difficult without access to a broader dataset of similar sole-source or competitively awarded contracts. However, for specialized, long-term sustainment of complex defense systems, such figures are not uncommon. The duration of over six years (December 2020 to July 2027) suggests a significant scope of work. A key factor in assessing value would be the number of systems supported, the complexity of the required maintenance, and the criticality of the systems to operational readiness. The lack of competition inherently makes a definitive value assessment challenging.

What are the primary risks associated with awarding a sole-source contract for critical defense system support?

The primary risks associated with sole-source awards for critical defense system support include a lack of price competition, which can lead to higher costs for the government and taxpayers. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting future flexibility and innovation. Furthermore, without competitive pressure, there may be less incentive for the sole-source provider to optimize efficiency or offer the most cost-effective solutions. Ensuring adequate oversight and performance management becomes even more critical in sole-source scenarios to mitigate these risks.

What is the expected impact of this contract on the operational readiness of Taiwan's fire control radar systems?

This contract is expected to significantly enhance the operational readiness of Taiwan's fire control radar systems by ensuring continuous post-production support. This includes maintenance, repair, and potentially upgrades or technical assistance necessary to keep these critical defense assets functioning effectively. Given the geopolitical context and the importance of robust air defense capabilities, sustained readiness is paramount. The long-term nature of the contract (over six years) suggests a commitment to maintaining these systems throughout their lifecycle, thereby bolstering Taiwan's defense posture.

How has spending on fire control radar support services evolved over the past five years, and does this contract represent a significant shift?

Analyzing the evolution of spending on fire control radar support services over the past five years requires access to historical contract data beyond this single award. This $15.5 million contract, awarded in late 2020, represents a specific investment for a defined period. Without broader trend data, it's impossible to determine if this contract signifies a significant shift in overall spending. Factors influencing historical spending could include technological advancements, changes in threat assessments, geopolitical developments, and budget allocations within the Department of Defense. This contract's sole-source nature also makes it less indicative of broader market trends.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5600 W SAND LAKE RD MP 205, 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: $15,518,886

Exercised Options: $15,518,886

Current Obligation: $15,518,886

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $42,000

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J20D0009

IDV Type: IDC

Timeline