DoD awards $24.3M to Lockheed Martin for modernized radar frequency interferometer, a sole-source contract

Contract Overview

Contract Amount: $24,312,560 ($24.3M)

Contractor: Lockheed Martin Corporation

Awarding Agency: Department of Defense

Start Date: 2021-10-29

End Date: 2025-06-30

Contract Duration: 1,340 days

Daily Burn Rate: $18.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: MODERNIZED-RADAR FREQUENCY INTERFEROMETER (M-RFI)

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to LOCKHEED MARTIN CORPORATION for work described as: MODERNIZED-RADAR FREQUENCY INTERFEROMETER (M-RFI) Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. The contract duration of 1340 days suggests a significant, long-term project. 3. Fixed Price Incentive contract type may incentivize cost control but also carries risk. 4. The award is for specialized aircraft parts, indicating a niche but critical need. 5. No small business set-aside was utilized, potentially limiting broader industry participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specialized nature and sole-source award. Without competitive bids, it's difficult to ascertain if the $24.3 million price represents fair market value. The fixed-price incentive structure aims to align contractor and government interests, but the lack of competition means the government may not be achieving the best possible price. Further analysis would require comparing this to similar, competitively bid contracts for comparable technology, if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Lockheed Martin Corporation, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple companies vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and can potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium, as there was no market pressure to drive down the price. This also reduces transparency in the procurement process.

Public Impact

The Department of the Army benefits from the acquisition of advanced radar technology. This contract supports the modernization of military surveillance and targeting capabilities. The geographic impact is primarily within New York, where the contractor is located. The contract likely supports a specialized workforce within Lockheed Martin, contributing to high-tech manufacturing jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Fixed Price Incentive contract type can lead to cost overruns if not managed carefully.
Lack of small business participation may limit opportunities for smaller innovative firms.

Positive Signals

Award to a major defense contractor suggests access to advanced and potentially reliable technology.
The contract addresses a specific need for modernized radar capabilities, indicating strategic investment.
Long contract duration allows for sustained development and integration of the technology.

Sector Analysis

The defense sector, particularly aircraft parts and auxiliary equipment manufacturing, is characterized by high technological complexity and significant government investment. This contract for a modernized radar frequency interferometer fits within this landscape, addressing a critical need for advanced electronic warfare and surveillance systems. The market is dominated by large, established defense contractors like Lockheed Martin, with specialized R&D capabilities. Comparable spending benchmarks are difficult to establish without more specific technical details, but investments in similar electronic warfare systems often run into tens or hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific procurement are likely limited. The focus on a large, sole-source award to a major prime contractor suggests that the primary benefits will accrue to the prime and its direct supply chain, which may not heavily involve small business set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. The Fixed Price Incentive (FPI) contract type requires careful monitoring of cost performance against targets to ensure the incentive structure is effective and not leading to excessive costs. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Electronic Warfare Systems
Aircraft Radar Systems
Military Surveillance Technology
Lockheed Martin Defense Contracts

Risk Flags

Sole-source award may result in higher costs.
Lack of competition limits price discovery.
Fixed Price Incentive contract requires careful cost monitoring.
No small business set-aside identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to LOCKHEED MARTIN CORPORATION. MODERNIZED-RADAR FREQUENCY INTERFEROMETER (M-RFI)

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 $24.3 million.

What is the period of performance?

Start: 2021-10-29. End: 2025-06-30.

What is the specific technical capability of the Modernized Radar Frequency Interferometer (M-RFI) being procured?

The provided data does not detail the specific technical capabilities of the Modernized Radar Frequency Interferometer (M-RFI). However, based on its designation and the contractor (Lockheed Martin), it is likely an advanced system designed for detecting, identifying, and locating sources of radio frequency emissions. This could include applications in electronic warfare, signals intelligence, and target tracking. The 'modernized' aspect suggests an upgrade or replacement of existing technology to incorporate newer features, improved sensitivity, or enhanced processing power. Further details would typically be found in the contract's statement of work or technical specifications, which are not publicly available in this dataset.

How does the $24.3 million cost compare to similar radar system procurements by the DoD?

Directly comparing the $24.3 million cost to similar radar system procurements is challenging without knowing the exact specifications and scope of the M-RFI. However, radar systems can vary significantly in price based on their complexity, range, resolution, and intended application. For instance, basic airborne radar might cost a few million dollars, while sophisticated, large-scale ground-based or naval radar systems can cost hundreds of millions. Given this is a sole-source award to Lockheed Martin for a specialized component, and considering the contract duration, $24.3 million appears to be a moderate investment for a modernized, potentially critical system. A more robust comparison would require access to a database of competitively bid contracts for similar M-RFI systems or components.

What are the primary risks associated with a sole-source, Fixed Price Incentive (FPI) contract for advanced defense technology?

A sole-source award for advanced defense technology like the M-RFI carries inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a higher price than if multiple vendors had bid. This reduces the government's leverage in price negotiations. Coupled with a Fixed Price Incentive (FPI) contract type, there's a risk that cost targets might be set too high or that the contractor may not be sufficiently motivated to control costs if the incentive structure is not well-defined or monitored. The government assumes a greater share of the cost risk if actual costs exceed the target cost, up to a ceiling price. Effective oversight and robust negotiation of the target cost and incentive sharing are crucial to mitigate these risks.

What is Lockheed Martin's track record with similar radar or electronic warfare systems for the Department of the Army?

Lockheed Martin Corporation has a long and extensive track record of developing and producing advanced radar, electronic warfare, and other sophisticated systems for the Department of Defense, including the Department of the Army. They are a major prime contractor involved in numerous large-scale defense programs. While specific details on their past M-RFI projects are not provided here, their portfolio includes a wide range of airborne radar (e.g., for fighter jets and surveillance aircraft), ground-based radar, and electronic warfare suites. Their experience suggests a high level of technical capability and program execution capacity, though like any large contractor, they have also faced scrutiny on specific programs regarding cost and schedule performance.

How does this contract align with the Department of the Army's broader modernization goals for intelligence, surveillance, and reconnaissance (ISR)?

This contract for a Modernized Radar Frequency Interferometer (M-RFI) directly aligns with the Department of the Army's ongoing modernization efforts in Intelligence, Surveillance, and Reconnaissance (ISR). Advanced radar capabilities are crucial for ISR missions, enabling the detection and tracking of targets in various weather conditions and across different terrains, often complementing electro-optical and signals intelligence systems. By investing in a modernized M-RFI, the Army is likely seeking to enhance its situational awareness, improve targeting accuracy, and maintain a technological edge over adversaries. This procurement supports the Army's strategic objective of leveraging advanced technologies to achieve information dominance on the battlefield.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 1801 STATE RT 17 C, OWEGO, NY, 13827

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: $46,513,430

Exercised Options: $24,312,560

Current Obligation: $24,312,560

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $3,856,764

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J18D0061

IDV Type: IDC

Timeline