DoD's $76.3M Multi-Mode Radar System Production contract awarded to SAAB, Inc. for naval systems
Contract Overview
Contract Amount: $76,384,200 ($76.4M)
Contractor: Saab, Inc
Awarding Agency: Department of Defense
Start Date: 2017-09-22
End Date: 2022-09-30
Contract Duration: 1,834 days
Daily Burn Rate: $41.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MULTI-MODE RADAR (MMR) SYSTEM PRODUCTION
Place of Performance
Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $76.4 million to SAAB, INC for work described as: MULTI-MODE RADAR (MMR) SYSTEM PRODUCTION Key points: 1. Value-for-money assessment indicates potential for competitive pricing due to full and open competition. 2. Competition dynamics show a robust bidding process, likely driving favorable terms. 3. Risk indicators are moderate, with contract duration and fixed-price structure suggesting cost control. 4. Performance context is tied to naval system production, a critical defense capability. 5. Sector positioning places this contract within the advanced sensor and navigation systems market.
Value Assessment
Rating: good
The contract value of $76.3 million for the Multi-Mode Radar (MMR) System Production appears reasonable given the specialized nature of the equipment. Benchmarking against similar advanced radar systems for naval applications suggests that the pricing is competitive, especially considering the full and open competition. The firm fixed-price structure further supports value for money by shifting cost overrun risks to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of three bidders suggests a healthy level of competition for this specialized defense system. This competitive environment is generally conducive to achieving better pricing and innovative solutions for the government.
Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by fostering a bidding environment where contractors vied for the best price and performance.
Public Impact
The U.S. Department of the Navy is the primary beneficiary, receiving advanced radar systems for its fleet. The contract delivers essential search, detection, navigation, and guidance capabilities for naval operations. The geographic impact is primarily within the United States, supporting naval bases and operations. Workforce implications include skilled labor in advanced manufacturing, engineering, and defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for schedule delays given the 1834-day duration.
- Reliance on a single contractor for production could pose supply chain risks if not managed.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests a strong market offering.
- Award to an established defense contractor like SAAB, Inc. implies technical capability.
Sector Analysis
This contract falls within the broader defense electronics and aerospace sector, specifically focusing on radar and sensor technology. The market for such advanced systems is characterized by high barriers to entry due to technological complexity and stringent quality requirements. Comparable spending benchmarks in this niche often involve significant R&D investment and long production cycles, making the $76.3 million value for a production run appear aligned with industry norms.
Small Business Impact
There is no indication of small business set-asides for this contract, nor is there explicit information on subcontracting plans. Given the specialized nature of advanced radar systems, it is possible that large prime contractors like SAAB, Inc. would engage other specialized firms, which could include small businesses, for specific components or services. However, without further details, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified radar systems. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.
Related Government Programs
- Naval Radar Systems
- Defense Electronics Production
- Search and Detection Systems
- Aeronautical and Nautical Instruments
Risk Flags
- Potential for schedule delays due to long contract duration.
- Reliance on a single prime contractor for production.
Tags
defense, department-of-the-navy, radar-systems, search-detection-navigation-guidance, instrument-manufacturing, definitive-contract, firm-fixed-price, full-and-open-competition, saab-inc, new-york, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.4 million to SAAB, INC. MULTI-MODE RADAR (MMR) SYSTEM PRODUCTION
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 $76.4 million.
What is the period of performance?
Start: 2017-09-22. End: 2022-09-30.
What is SAAB, Inc.'s track record with similar naval radar systems contracts?
SAAB, Inc. has a significant history in defense systems, including radar technology. While specific details on prior naval radar contracts of this exact scope are not provided in the abbreviated data, the company is a known global supplier of advanced radar solutions for various military platforms, including naval vessels. Their experience in developing and producing complex sensor systems suggests a strong capability to fulfill this contract. Further investigation into their past performance ratings and delivery history on comparable projects would provide a more comprehensive assessment of their track record.
How does the $76.3 million contract value compare to similar Multi-Mode Radar systems procured by the DoD?
Direct comparison of the $76.3 million contract value for the Multi-Mode Radar (MMR) System Production is challenging without access to detailed specifications and quantities of the systems procured. However, considering the specialized nature of advanced naval radar, this value appears within a reasonable range for production runs of sophisticated equipment. The firm fixed-price nature and full and open competition suggest that the government sought competitive pricing. Benchmarking against other large-scale defense electronics procurements indicates that costs can vary widely based on technological sophistication, integration requirements, and lifecycle support.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks for this contract include potential technical performance issues, schedule delays, and cost overruns (though mitigated by fixed-price). Given the 1834-day duration, schedule slippage is a notable risk. Technical risks are inherent in advanced systems, but SAAB, Inc.'s experience is a mitigating factor. The firm fixed-price contract shifts financial risk to the contractor, incentivizing efficient production. The Department of the Navy's oversight and acceptance testing processes serve as key mitigation strategies for performance and quality.
How effective is the 'full and open competition' strategy in ensuring value for this type of specialized defense procurement?
The 'full and open competition' strategy is generally highly effective in ensuring value for specialized defense procurements like this radar system contract. By allowing all responsible sources to submit bids, it maximizes the pool of potential suppliers, fostering a competitive environment. This competition drives down prices, encourages innovation, and ensures that the government receives the best possible combination of technical capability and cost. The fact that three bidders participated indicates a healthy market for this technology, further supporting the effectiveness of this procurement approach in achieving value for taxpayers.
What is the historical spending trend for Multi-Mode Radar systems by the Department of the Navy?
Historical spending on Multi-Mode Radar (MMR) systems by the Department of the Navy is not detailed in the provided data. However, it is understood that naval forces require continuous upgrades and replacements of advanced sensor systems like radar due to technological advancements and operational demands. Spending in this category is typically significant and can fluctuate based on modernization programs, fleet expansion, and specific threat assessments. The $76.3 million awarded to SAAB, Inc. represents a specific investment within this broader category, likely part of a larger, ongoing effort to maintain and enhance naval situational awareness capabilities.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002417R5381
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations
Financial Breakdown
Contract Ceiling: $77,941,956
Exercised Options: $77,328,225
Current Obligation: $76,384,200
Actual Outlays: $5,910,536
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,693,487
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-22
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2025-06-30
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