DoD Awards $98M to SAAB, Inc. for Search, Detection, Navigation Systems
Contract Overview
Contract Amount: $98,161,489 ($98.2M)
Contractor: Saab, Inc
Awarding Agency: Department of Defense
Start Date: 2020-09-25
End Date: 2025-12-31
Contract Duration: 1,923 days
Daily Burn Rate: $51.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SPN-50 LRIP - ON FEDBIZOPS SOL# N00019PMA2130020
Place of Performance
Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $98.2 million to SAAB, INC for work described as: SPN-50 LRIP - ON FEDBIZOPS SOL# N00019PMA2130020 Key points: 1. Contract awarded to SAAB, Inc. for critical navigation and detection systems. 2. Significant award value of $98.16 million. 3. The contract is a definitive, fixed-price incentive type. 4. No small business participation noted in this award.
Value Assessment
Rating: fair
The contract is a fixed-price incentive type, which can lead to cost overruns if not managed carefully. The award value is substantial, and benchmarking against similar contracts for specialized navigation systems is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. This may limit price discovery and potentially lead to higher costs for the government compared to a fully competed scenario.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these critical defense systems.
Public Impact
Enhances naval capabilities with advanced search and navigation technology. Supports national security through the acquisition of sophisticated defense instruments. Potential for technological advancements in maritime surveillance and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Fixed-price incentive contract type
- No small business participation
Positive Signals
- Award to established defense contractor
- Supports critical naval systems
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this niche area is driven by defense modernization and technological advancement, with significant investment typically seen in advanced sensor and guidance systems.
Small Business Impact
This contract does not appear to include any provisions for small business participation. This is a missed opportunity to support small businesses within the defense industrial base and could indicate a lack of focus on subcontracting opportunities for smaller entities.
Oversight & Accountability
The award is managed by the Department of the Navy. Oversight will be crucial to ensure the fixed-price incentive contract achieves its objectives without significant cost overruns, given the limited competition.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (FPI)
- No small business participation
- Limited transparency on justification for non-competition
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.2 million to SAAB, INC. SPN-50 LRIP - ON FEDBIZOPS SOL# N00019PMA2130020
Who is the contractor on this award?
The obligated recipient is SAAB, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $98.2 million.
What is the period of performance?
Start: 2020-09-25. End: 2025-12-31.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. However, for limited or sole-source contracts, agencies typically rely on market research and negotiation to ensure fair and reasonable pricing. The use of a fixed-price incentive contract suggests an attempt to share risk and reward with the contractor based on performance targets, but close monitoring is essential to prevent cost escalation.
What are the potential risks associated with a fixed-price incentive contract for advanced navigation systems, especially when not competed?
A fixed-price incentive contract carries the risk of cost overruns if the target cost is set too high or if performance targets are not met efficiently. When not competed, the government has less leverage to negotiate favorable terms, potentially increasing the risk of paying a premium. The complexity of advanced navigation systems can also make it difficult to accurately define and track performance metrics, further complicating oversight.
How will the effectiveness of these navigation systems be measured, and what is the long-term impact on naval operational capabilities?
The effectiveness of these systems will likely be measured against specific performance metrics outlined in the contract, such as accuracy, reliability, and operational readiness. The long-term impact on naval capabilities could be significant, potentially enhancing situational awareness, improving mission success rates, and providing a technological edge in maritime operations. Regular performance reviews and operational testing will be key to assessing their true effectiveness.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Saab Defense and Security USA LLC
Address: 5717 ENTERPRISE PKWY, EAST SYRACUSE, NY, 13057
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $98,161,489
Exercised Options: $98,161,489
Current Obligation: $98,161,489
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $4,186,748
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-25
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-02-21
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