DoD's $55.3M Multi-Mode Radar Contract Awarded to SAAB, Inc. Lacks Competition
Contract Overview
Contract Amount: $55,288,523 ($55.3M)
Contractor: Saab, Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2027-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $30.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY-22 PRODUCTION OF MULTI-MODE RADAR
Place of Performance
Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $55.3 million to SAAB, INC for work described as: FY-22 PRODUCTION OF MULTI-MODE RADAR Key points: 1. Significant spending on advanced radar systems for naval applications. 2. Sole-source award to SAAB, Inc. raises questions about price discovery. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on specialized navigation and guidance instruments.
Value Assessment
Rating: questionable
The contract value of $55.3M for FY22 production of multi-mode radar is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems or if it reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to SAAB, Inc. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for the multi-mode radar systems.
Public Impact
Naval forces may receive advanced radar technology crucial for operations. Taxpayers could be overpaying for the radar systems due to the absence of competition. SAAB, Inc. benefits from a guaranteed contract without market pressure. Future procurements of similar systems might follow this non-competitive pattern.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential defense technology
- Long-term contract duration
Sector Analysis
The Department of Defense's spending in the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector is critical for national security. Benchmarks for radar systems vary widely based on complexity and capabilities.
Small Business Impact
There is no indication of small business participation in this sole-source contract award to SAAB, Inc. Further analysis would be needed to determine if subcontracting opportunities were explored or offered.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure the government obtained the best value and that such sole-source decisions are justified and documented.
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
- Sole-source award lacks competitive pricing.
- Potential for cost overruns.
- Limited transparency in price negotiation.
- Dependency on a single vendor.
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 $55.3 million to SAAB, INC. FY-22 PRODUCTION OF MULTI-MODE RADAR
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 $55.3 million.
What is the period of performance?
Start: 2022-09-30. End: 2027-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives that meet specific requirements. Without further documentation, it's presumed the Navy determined SAAB, Inc. was the only viable source for these specific multi-mode radar systems at the time of procurement.
How does the cost of this radar system compare to similar systems procured competitively?
Direct comparison is challenging without competitive data. However, sole-source contracts often carry a price premium compared to competed contracts due to the absence of market forces driving down costs. A thorough cost analysis by the agency would be necessary to validate the pricing.
What is the long-term strategic impact of relying on a single supplier for critical radar technology?
Long-term reliance on a single supplier can create strategic vulnerabilities, including potential supply chain disruptions, price escalation, and reduced innovation. It also limits the government's flexibility in adapting to new technologies or changing operational needs.
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
Solicitation ID: N0002421R5530
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Saab Defense and Security USA LLC
Address: 5717 ENTERPRISE PKWY STE 3, 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: $67,601,512
Exercised Options: $55,791,884
Current Obligation: $55,288,523
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,182,044
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-09-30
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-09-26
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