State Department awards $35.3M counter-drone radar contract to Echodyne Corp

Contract Overview

Contract Amount: $35,316,331 ($35.3M)

Contractor: Echodyne Corp

Awarding Agency: Department of State

Start Date: 2025-07-31

End Date: 2026-07-31

Contract Duration: 365 days

Daily Burn Rate: $96.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COUNTER-DRONE RADARS, TECHNICAL SUPPORT, AND TRAINING.

Place of Performance

Location: KIRKLAND, KING County, WASHINGTON, 98033

State: Washington Government Spending

Plain-Language Summary

Department of State obligated $35.3 million to ECHODYNE CORP for work described as: COUNTER-DRONE RADARS, TECHNICAL SUPPORT, AND TRAINING. Key points: 1. Contract value represents a significant investment in advanced counter-unmanned aircraft systems (C-UAS) capabilities. 2. Sole-source award after exclusion of sources suggests limited market availability or specific technical requirements. 3. The contract duration of one year with a firm-fixed-price structure aims to control costs. 4. Focus on technical support and training indicates a need for operational readiness and user proficiency. 5. The award falls within the broader defense and security sector's increasing focus on drone threats. 6. Performance is tied to specific system and instrument manufacturing for search, detection, and navigation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the specific nature of counter-drone radar systems and the 'exclusion of sources' competition type. The firm-fixed-price structure is a positive indicator for cost control. However, without more data on the specific capabilities of the radar systems and the technical support required, a definitive value-for-money assessment is difficult. The contract's value of $35.3 million for a one-year period for technical support and training suggests a substantial investment in specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the initial intent might have been broader competition, specific circumstances led to limiting the pool of eligible bidders. This could be due to unique technological requirements, proprietary systems, or prior performance. The limited competition raises questions about whether the government secured the best possible pricing and innovation.

Taxpayer Impact: The limited competition may result in higher costs for taxpayers compared to a scenario with broader market participation. It also suggests fewer opportunities for new entrants or smaller businesses to compete for this specific requirement.

Public Impact

The Department of State is the primary beneficiary, enhancing its security posture against drone threats. The contract delivers advanced counter-drone radar technology, technical support, and training. Geographic impact is likely global, supporting State Department operations in various sensitive locations. Workforce implications include the need for trained personnel to operate and maintain the radar systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Reliance on a single source for critical technology could pose supply chain risks.
The effectiveness of training and support services needs to be rigorously monitored.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Focus on technical support and training ensures operational readiness.
Award to a known entity in the counter-drone space may indicate proven capability.

Sector Analysis

The counter-drone market is a rapidly growing segment within the broader aerospace and defense industry, driven by increasing threats from unmanned aerial systems. This contract fits within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in C-UAS technologies is escalating across government agencies, with significant investments anticipated in radar, electronic warfare, and integrated defense systems.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the award was not set aside for small businesses and the contractor, Echodyne Corp, is not typically classified as a small business. There is no explicit mention of subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on acquiring specialized technology from a capable provider, potentially overlooking opportunities to engage the small business ecosystem.

Oversight & Accountability

Oversight will primarily fall under the Department of State's contracting and program management offices. Accountability measures will be tied to the performance metrics outlined in the firm-fixed-price contract. Transparency regarding the specific reasons for excluding other sources and the detailed technical specifications of the radar system may be limited due to security or proprietary concerns. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Counter-UAS Programs
Department of Homeland Security Border Security Technology
Federal Aviation Administration Drone Integration Initiatives
Intelligence Community Counter-Surveillance Technologies

Risk Flags

Limited competition raises concerns about cost-effectiveness.
Potential for vendor lock-in due to specialized technology.
Need for rigorous performance monitoring of support and training.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $35.3 million to ECHODYNE CORP. COUNTER-DRONE RADARS, TECHNICAL SUPPORT, AND TRAINING.

Who is the contractor on this award?

The obligated recipient is ECHODYNE CORP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $35.3 million.

What is the period of performance?

Start: 2025-07-31. End: 2026-07-31.

What is Echodyne Corp's track record with the Department of State and other federal agencies for similar counter-drone systems?

Echodyne Corp has a history of providing counter-drone radar solutions to various government entities, including the Department of Defense and Department of Homeland Security. Their systems, often based on metamaterial-based phased array radar technology, are designed for detecting and tracking small, low-flying drones. While specific contract details with the State Department prior to this award are not detailed here, their broader federal presence suggests a level of established performance and familiarity with government procurement processes. Further analysis would require examining past performance reviews and contract histories across agencies to fully assess their track record.

How does the $35.3 million contract value compare to similar counter-drone radar procurements by other federal agencies?

Comparing this $35.3 million contract value requires understanding the scope of services (technical support and training) and the specific radar capabilities procured. Counter-drone systems can range significantly in price based on range, detection capabilities, mobility, and integration complexity. For instance, large-scale, integrated C-UAS systems deployed at critical infrastructure or military bases can cost tens to hundreds of millions of dollars. Smaller, man-portable systems are significantly less. This $35.3 million for a one-year period, including support and training, suggests a mid-to-high tier procurement, likely for a robust system with advanced features, but not necessarily a full-scale, multi-year, enterprise-wide deployment.

What are the primary risks associated with a 'sole-source after exclusion of sources' award for critical defense technology?

The primary risks associated with a 'sole-source after exclusion of sources' award include reduced price competition, potentially leading to higher costs for taxpayers. It can also limit innovation by excluding potentially competitive technologies from other vendors. Furthermore, it creates a dependency on a single contractor, which can pose supply chain risks and reduce leverage in future negotiations. For critical defense technology, this approach necessitates a strong justification based on unique capabilities, national security imperatives, or the unavailability of alternatives, and requires robust oversight to ensure the selected source is indeed the best value and technically superior option.

What are the expected program effectiveness metrics for this counter-drone radar system and associated support?

Expected program effectiveness metrics for this counter-drone radar system and associated support would likely focus on key performance indicators (KPIs) related to detection, tracking, and classification of Unmanned Aircraft Systems (UAS). These could include metrics such as Probability of Detection (Pd) for various drone types and sizes, Probability of False Alarm (Pfa), target tracking accuracy (e.g., position and velocity error), system reaction time from detection to alert, and the Mean Time Between Failures (MTBF) for the radar hardware. For the technical support and training components, effectiveness would be measured by user proficiency levels achieved, system uptime and availability rates, and the responsiveness and quality of technical assistance provided.

How has federal spending on counter-drone technology evolved over the past five years, and what trends does this contract reflect?

Federal spending on counter-drone technology has seen a dramatic increase over the past five years, driven by the proliferation of UAS and their evolving threat capabilities. Initial spending focused on basic detection systems, but has rapidly expanded to include integrated solutions encompassing detection, tracking, identification, and mitigation (e.g., electronic warfare, kinetic defeat). Agencies like the Department of Defense, Department of Homeland Security, and increasingly, the Department of State, have allocated substantial budgets to address this threat. This $35.3 million award to Echodyne Corp reflects the trend towards acquiring advanced, specialized radar solutions and emphasizes the need for robust technical support and training to ensure operational effectiveness, aligning with the broader government-wide effort to counter UAS threats.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM25R0087

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12112 115TH AVE NE STE A, KIRKLAND, WA, 98034

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,316,331

Exercised Options: $35,316,331

Current Obligation: $35,316,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline