DoD Awards SAAB $65.2M for MK 9 Tracker Illuminator System Replacement
Contract Overview
Contract Amount: $65,200,062 ($65.2M)
Contractor: Saab, Inc
Awarding Agency: Department of Defense
Start Date: 2021-08-02
End Date: 2030-03-30
Contract Duration: 3,162 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DEVELOPMENT AND PRODUCTION OF MK 9 TRACKER ILLUMINATOR SYSTEM (TIS) REPLACEMENT CONTINUOUS WAVE TRACKING ILLUMINATOR (CWTI) BASE AWARD
Place of Performance
Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $65.2 million to SAAB, INC for work described as: DEVELOPMENT AND PRODUCTION OF MK 9 TRACKER ILLUMINATOR SYSTEM (TIS) REPLACEMENT CONTINUOUS WAVE TRACKING ILLUMINATOR (CWTI) BASE AWARD Key points: 1. Contract awarded to SAAB, Inc. for a critical defense system replacement. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans nearly 9 years, indicating a long-term need. 4. The North American Industry Classification System (NAICS) code 336419 points to specialized manufacturing.
Value Assessment
Rating: good
The $65.2 million award for the CWTI system appears reasonable given the long duration and specialized nature of the equipment. Benchmarking against similar complex defense system development and production contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, potentially driving down costs and ensuring the government receives competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for this essential defense system.
Public Impact
Enhances naval defense capabilities with updated tracking illuminator technology. Supports the Department of the Navy's modernization efforts. Ensures operational readiness for critical naval platforms. Contributes to the specialized aerospace and defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may introduce scope creep risks.
- Reliance on a single awardee for a critical system.
Positive Signals
- Utilized full and open competition.
- Awarded to a reputable defense contractor.
- Addresses a clear technological upgrade need.
Sector Analysis
This contract falls within the specialized manufacturing sector for guided missile and space vehicle parts. Spending in this area is driven by defense modernization and national security requirements, with significant R&D investment typical.
Small Business Impact
The contract was awarded to SAAB, Inc., a large corporation, and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The definitive contract structure with a long performance period necessitates robust oversight from the Department of the Navy to manage performance, costs, and adherence to specifications throughout the contract lifecycle.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration (nearly 9 years)
- Potential for cost growth over the contract period
- Reliance on a single contractor for a critical system
- Need for ongoing oversight to ensure performance and value
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.2 million to SAAB, INC. DEVELOPMENT AND PRODUCTION OF MK 9 TRACKER ILLUMINATOR SYSTEM (TIS) REPLACEMENT CONTINUOUS WAVE TRACKING ILLUMINATOR (CWTI) BASE AWARD
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 $65.2 million.
What is the period of performance?
Start: 2021-08-02. End: 2030-03-30.
What is the specific technological advancement this replacement system offers over the previous MK 9 TIS?
The replacement CWTI system is expected to offer significant technological advancements, likely including improved signal processing, enhanced targeting accuracy, greater resistance to countermeasures, and potentially reduced power consumption or a smaller footprint compared to the legacy MK 9 TIS. These upgrades are crucial for maintaining a technological edge in evolving naval warfare environments.
What are the potential risks associated with a single definitive contract for a critical system over a 9-year period?
A long-term, single definitive contract carries risks such as potential cost overruns if initial estimates are inaccurate, vendor lock-in limiting future technological adoption, and reduced incentive for the contractor to innovate aggressively after the initial award. Robust contract management, clear performance metrics, and regular reviews are essential to mitigate these risks.
How effectively will this contract ensure long-term system sustainment and potential upgrades beyond the initial 2030 end date?
The contract's structure through March 2030 provides a foundation for sustainment during its term. However, ensuring long-term sustainment and future upgrades will depend on the inclusion of appropriate options, service life extension clauses, and potentially follow-on contracts. Proactive planning by the Navy is needed to address obsolescence and incorporate future technological advancements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002419R5414
Offers Received: 2
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, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $110,877,833
Exercised Options: $65,200,062
Current Obligation: $65,200,062
Subaward Activity
Number of Subawards: 41
Total Subaward Amount: $20,283,289
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-02
Current End Date: 2030-03-30
Potential End Date: 2030-03-30 00:00:00
Last Modified: 2025-09-19
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