Navy Awards $44.1M Contract to SAAB, Inc. for Submarine Warfare Training Targets
Contract Overview
Contract Amount: $44,158,265 ($44.2M)
Contractor: Saab, Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2026-08-14
Contract Duration: 1,414 days
Daily Burn Rate: $31.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION AND ENGINEERING SUPPORT SERVICES FOR THE MK 39 MOD 3 EXPANDABLE MOBILE ANTISUBMARINE WARFARE TRAINING TARGET.
Place of Performance
Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $44.2 million to SAAB, INC for work described as: PRODUCTION AND ENGINEERING SUPPORT SERVICES FOR THE MK 39 MOD 3 EXPANDABLE MOBILE ANTISUBMARINE WARFARE TRAINING TARGET. Key points: 1. Contract awarded to SAAB, Inc. for specialized anti-submarine warfare training targets. 2. The contract value is $44.1 million, with a performance period extending to August 2026. 3. This procurement falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' NAICS code. 4. The award was made under full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $44.1 million for specialized training targets appears reasonable given the duration and complexity of the system. Benchmarking against similar defense training systems would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for advanced military training capabilities, which is a standard defense expenditure.
Public Impact
Enhances anti-submarine warfare (ASW) training capabilities for the U.S. Navy. Supports the development and production of advanced, expandable mobile training targets. Contributes to readiness and effectiveness of naval forces in a critical defense area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if production complexities arise.
- Dependence on a single contractor for specialized components or services.
- Long-term sustainment and upgrade costs are not detailed.
Positive Signals
- Utilizes full and open competition to ensure competitive pricing.
- Awarded to a known defense contractor with relevant expertise.
- Supports critical national defense training requirements.
Sector Analysis
This contract falls within the defense sector, specifically focusing on specialized ordnance and training equipment. Defense spending on advanced training systems is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The data indicates that SAAB, Inc. is the prime contractor and that small business participation was not explicitly noted as a requirement or achievement in this award. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The use of a definitive contract with a set end date suggests a structured oversight framework is in place.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for schedule delays due to complex engineering requirements.
- Risk of obsolescence if technology advances rapidly.
- Dependence on SAAB, Inc. for critical ASW training capabilities.
- Uncertainty regarding long-term operational and maintenance costs.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.2 million to SAAB, INC. PRODUCTION AND ENGINEERING SUPPORT SERVICES FOR THE MK 39 MOD 3 EXPANDABLE MOBILE ANTISUBMARINE WARFARE TRAINING TARGET.
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 $44.2 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-08-14.
What is the projected lifecycle cost of these training targets, including maintenance and upgrades?
The provided data focuses on the initial production and engineering support services. Lifecycle cost projections, including maintenance, sustainment, and potential future upgrades, are not detailed in this award notice. A comprehensive lifecycle cost analysis would be necessary to fully understand the long-term financial commitment associated with these training targets.
How does the unit cost of these targets compare to similar systems used by allied nations or in previous Navy programs?
Benchmarking the unit cost against similar systems is crucial for assessing value. Without access to comparative data on allied nation programs or historical Navy procurement of comparable training targets, it is difficult to definitively state if this contract represents optimal value. Further research into industry cost standards and historical pricing would be beneficial.
What are the key performance metrics and testing protocols to ensure the effectiveness of these training targets?
The effectiveness of the training targets will depend on their ability to accurately simulate real-world threats and provide realistic training scenarios. Specific performance metrics and testing protocols are typically detailed in the contract's statement of work. Ensuring these metrics align with training objectives and are rigorously tested is vital for validating the contract's effectiveness.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6660422R0002
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 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: $182,344,978
Exercised Options: $51,991,862
Current Obligation: $44,158,265
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $2,842,206
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-30
Current End Date: 2026-08-14
Potential End Date: 2032-08-13 00:00:00
Last Modified: 2025-12-23
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