Longbow LLC awarded $198.5M for Fire Control Radar production, a sole-source contract with a long performance period

Contract Overview

Contract Amount: $198,476,069 ($198.5M)

Contractor: Longbow LLC

Awarding Agency: Department of Defense

Start Date: 2024-10-11

End Date: 2030-09-30

Contract Duration: 2,180 days

Daily Burn Rate: $91.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIRE CONTROL RADAR (FCR) PRODUCTION

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32819

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $198.5 million to LONGBOW LLC for work described as: FIRE CONTROL RADAR (FCR) PRODUCTION Key points: 1. The contract's value, while substantial, requires careful benchmarking against similar defense systems to ensure optimal value. 2. Sole-source procurement limits competitive pressure, potentially impacting price efficiency and innovation. 3. The extended performance period (2024-2030) presents long-term financial commitments and potential for scope creep. 4. The 'Aircraft Manufacturing' NAICS code suggests a focus on integrated systems, but specific FCR capabilities are key to performance assessment. 5. The contract's reliance on a single provider raises concerns about supply chain resilience and future pricing flexibility. 6. The absence of small business set-asides warrants scrutiny of subcontracting opportunities for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the $198.5 million contract for Fire Control Radar (FCR) production is challenging without detailed technical specifications and comparable market data. However, the sole-source nature and the absence of competition suggest that the pricing may not have benefited from market-driven efficiencies. The long duration of the contract also introduces risks related to cost escalation over time. A thorough review would involve comparing the unit cost of these radars to similar systems procured competitively by the DoD or allied nations, considering technological advancements and production volumes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one responsible source is available or when a compelling justification exists for excluding competition. The lack of a competitive bidding process means that potential cost savings and innovative solutions that might arise from a competitive environment were not realized. The government relied on negotiation to establish the contract terms and pricing.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not leverage market forces to drive down prices. This also limits the opportunity to discover more cost-effective solutions from a wider range of suppliers.

Public Impact

The primary beneficiaries are the Department of the Army, receiving advanced Fire Control Radar systems essential for military operations. The contract ensures the production and delivery of critical defense technology, enhancing the nation's military capabilities. The contract is geographically focused in Florida (ST, SN), potentially supporting regional economic activity and specialized manufacturing. The workforce implications include employment for skilled labor in aircraft manufacturing and defense systems production within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Extended contract duration (over 5 years) increases exposure to potential cost overruns and market volatility.
Lack of competition raises concerns about contractor performance incentives and responsiveness.
Absence of small business set-aside may limit opportunities for smaller, innovative firms in the defense supply chain.

Positive Signals

Contract ensures continued production of critical Fire Control Radar systems for national defense.
Long-term contract provides stability for the contractor and ensures a consistent supply of essential equipment.
Firm Fixed Price contract type shifts some cost risk to the contractor.
Award to a known entity (LONGBOW LLC) may indicate a reliance on specialized expertise or existing systems.

Sector Analysis

The defense electronics sector, particularly radar systems, is a highly specialized and capital-intensive market. This contract for Fire Control Radars (FCR) falls within the broader 'Aircraft Manufacturing' NAICS code, indicating the integration of these systems into aerial platforms. The market is characterized by high barriers to entry due to technological complexity, stringent quality requirements, and long development cycles. Spending in this area is driven by national security needs and technological advancements, with significant government investment. Comparable spending benchmarks would typically involve analyzing other large-scale radar system procurements or integrated defense platform contracts.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. This means the primary award was not specifically targeted to small businesses. Consequently, the direct impact on small business participation is limited unless subcontracting opportunities are actively pursued and awarded. The absence of a set-aside warrants further investigation into the contractor's subcontracting plan to ensure that small businesses have a fair opportunity to participate in fulfilling parts of this large contract, contributing to the broader small business defense ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army contracting and program management offices. Accountability measures are embedded within the contract's terms, including performance standards and delivery schedules, likely overseen by the contracting officer's representative (COR). Transparency is generally limited for sole-source defense contracts, though contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, with potential for audits and investigations throughout the contract's lifecycle.

Related Government Programs

Advanced Radar Systems Procurement
Defense Aircraft Component Manufacturing
Military Electronics Production
Longbow Weapon System Production
Department of Defense Weapon Systems Acquisition

Risk Flags

Sole-source award
Long contract duration
Lack of competition
Potential for cost escalation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $198.5 million to LONGBOW LLC. FIRE CONTROL RADAR (FCR) PRODUCTION

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 $198.5 million.

What is the period of performance?

Start: 2024-10-11. End: 2030-09-30.

What is the specific technological capability and intended use of the Fire Control Radars (FCR) being produced under this contract?

The provided data identifies the product as 'FIRE CONTROL RADAR (FCR) PRODUCTION' and assigns it the NAICS code '336411' (Aircraft Manufacturing). While this indicates the radars are likely integrated into aircraft and designed for targeting, specific details regarding their technological capabilities (e.g., frequency bands, range, resolution, multi-target tracking, electronic counter-countermeasures) are not available in the summary data. The intended use is to enhance the targeting and engagement effectiveness of military aircraft platforms. Further analysis would require access to the contract's statement of work (SOW) or technical exhibits, which would detail the precise specifications and operational requirements for these FCR systems.

How does the per-unit cost of these FCRs compare to similar systems procured by the DoD or allied nations?

A direct per-unit cost comparison is not feasible with the provided data alone. The contract value is $198,476,068.86, and the number of units is not specified, preventing a simple division to find a unit cost. Furthermore, the sole-source nature of the award means there was no competitive bidding to establish a market-driven price. To conduct a meaningful comparison, one would need to identify the exact quantity of FCRs being procured, their detailed technical specifications, and then benchmark these against publicly available data for similar radar systems acquired competitively by the U.S. military or international partners. Without this granular information, assessing value for money on a per-unit basis remains speculative.

What are the key performance indicators (KPIs) and acceptance criteria outlined in the contract for the FCR production?

The provided data does not include specific Key Performance Indicators (KPIs) or acceptance criteria for the Fire Control Radar (FCR) production. Typically, such details are found within the contract's Statement of Work (SOW), performance specifications, and quality assurance provisions. These KPIs would likely relate to factors such as radar reliability (Mean Time Between Failures - MTBF), accuracy in target detection and tracking, system responsiveness, environmental resilience (operating temperature, vibration resistance), and compliance with stringent defense standards. Acceptance criteria would define the conditions under which the delivered FCR units are deemed acceptable by the government, often involving rigorous testing and validation processes.

What is the track record of LONGBOW LLC in producing Fire Control Radars or similar complex defense systems?

The provided data identifies LONGBOW LLC as the contractor but does not offer details on their specific track record concerning Fire Control Radar (FCR) production. LONGBOW LLC is known for its involvement in advanced weapon systems, particularly the LONGBOW missile and associated fire control systems used on helicopters like the Apache. This suggests a relevant, albeit potentially specialized, background. However, a comprehensive assessment would require reviewing their past performance on similar government contracts, including delivery timeliness, quality adherence, cost performance, and any past performance evaluations or disputes. Information on their experience specifically with the type of FCRs being procured under this contract would be crucial.

What is the historical spending trend for Fire Control Radars or similar systems by the Department of the Army?

The provided data only includes information for this specific contract award. Historical spending trends for Fire Control Radars (FCR) or related systems by the Department of the Army are not available within this dataset. To analyze historical spending, one would need access to broader contract databases (like FPDS or SAM.gov) and filter for relevant Product Service Codes (PSCs) or NAICS codes associated with radar systems and defense electronics over multiple fiscal years. This would allow for the identification of spending patterns, major contractors, and the evolution of procurement strategies for such critical technologies within the Army.

What are the potential risks associated with the sole-source award and the long duration of this contract?

The sole-source nature of this contract presents several risks. Firstly, it eliminates the potential for competitive pressure, which typically drives down prices and encourages innovation. This could lead to the government paying a premium for the FCR systems. Secondly, it concentrates reliance on a single supplier, potentially creating vulnerabilities in the supply chain and limiting the government's leverage in future negotiations or contract modifications. The long duration (ending September 30, 2030) exacerbates these risks. It increases the potential for cost overruns due to inflation or unforeseen technical challenges, and it locks the government into a potentially suboptimal pricing structure for an extended period. Furthermore, it reduces flexibility to adapt to evolving technological requirements or to switch to more cost-effective solutions if they emerge.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5600 SAND LAKE ROAD, 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: $224,089,982

Exercised Options: $198,476,069

Current Obligation: $198,476,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline