DoD Awards $928M for Counter Fire Radar System Enhancements to Lockheed Martin
Contract Overview
Contract Amount: $928,365,084 ($928.4M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2012-02-29
End Date: 2017-10-30
Contract Duration: 2,070 days
Daily Burn Rate: $448.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS CONTRACT WILL PROCURE AN ENHANCEMENT OF THE AGING AN/TPQ-36(V)8 AND AN/TPQ-37 TARGET ACQUISITION COUNTER FIRE RADAR SYSTEMS. THE CONTRACTOR WILL DELIVER TWO SYSTEMS PER MONTH IN SUPPORT OF A TOTAL OF 32 ACCELERATED INITIAL PRODUCTION (IP) SYSTEMS.
Place of Performance
Location: LIVERPOOL, ONONDAGA County, NEW YORK, 13088
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $928.4 million to LOCKHEED MARTIN CORPORATION for work described as: THIS CONTRACT WILL PROCURE AN ENHANCEMENT OF THE AGING AN/TPQ-36(V)8 AND AN/TPQ-37 TARGET ACQUISITION COUNTER FIRE RADAR SYSTEMS. THE CONTRACTOR WILL DELIVER TWO SYSTEMS PER MONTH IN SUPPORT OF A TOTAL OF 32 ACCELERATED INITIAL PRODUCTION (IP) SYSTEMS. Key points: 1. Significant investment in modernizing aging radar systems. 2. Lockheed Martin is the sole awardee, raising questions about competition. 3. Risk of cost overruns or schedule delays in a complex upgrade. 4. Spending aligns with the Defense sector's need for advanced surveillance.
Value Assessment
Rating: questionable
The contract value of $928M for 32 systems over approximately 5 years suggests a per-system cost of roughly $29M. Benchmarking this against similar complex radar system procurements is difficult without more specific technical details, but the scale of the award warrants scrutiny.
Cost Per Unit: $29M (estimated)
Competition Analysis
Competition Level: full-and-open
Despite being awarded to Lockheed Martin, the contract states 'full and open competition.' This implies multiple bids were considered, but the single awardee suggests Lockheed Martin was the most competitive or the only viable option. Price discovery may have been robust during the bidding process.
Taxpayer Impact: Taxpayers are funding a critical upgrade to military hardware, aiming to enhance battlefield awareness and protection. The effectiveness of the competition will determine if the best value was achieved.
Public Impact
Enhances critical counter-fire capabilities for military operations. Supports modernization efforts within the Department of Defense. Potential for job creation within Lockheed Martin and its supply chain. Ensures continued technological advantage in target acquisition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee despite stated full and open competition.
- Long contract duration increases risk of scope creep.
- Aging technology upgrade may face unforeseen technical challenges.
Positive Signals
- Addresses a clear military need for improved radar.
- Firm Fixed Price contract provides cost certainty.
- Accelerated initial production aims for rapid deployment.
Sector Analysis
This contract falls within the Defense sector, specifically targeting the manufacturing of advanced radar systems. Spending benchmarks for such specialized military hardware are highly variable, but $928M represents a substantial commitment to maintaining and upgrading critical surveillance technology.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Lockheed Martin is a large prime contractor, and any small business involvement would likely be as a subcontractor, which is not detailed here.
Oversight & Accountability
The Department of Defense, through its various agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Accountability for performance, cost, and schedule rests with the contracting parties and the DoD oversight bodies.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to complexity and duration.
- Risk of schedule delays impacting operational readiness.
- Dependence on a single contractor for critical system upgrades.
- Technological obsolescence of the base systems being enhanced.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $928.4 million to LOCKHEED MARTIN CORPORATION. THIS CONTRACT WILL PROCURE AN ENHANCEMENT OF THE AGING AN/TPQ-36(V)8 AND AN/TPQ-37 TARGET ACQUISITION COUNTER FIRE RADAR SYSTEMS. THE CONTRACTOR WILL DELIVER TWO SYSTEMS PER MONTH IN SUPPORT OF A TOTAL OF 32 ACCELERATED INITIAL PRODUCTION (IP) SYSTEMS.
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $928.4 million.
What is the period of performance?
Start: 2012-02-29. End: 2017-10-30.
How effectively did the 'full and open competition' process ensure the best possible price and technical solution, given the single award to Lockheed Martin?
While the contract states 'full and open competition,' the single award to Lockheed Martin warrants further investigation into the bidding process. It's crucial to understand if other capable vendors were discouraged from bidding, if proposals were evaluated rigorously, and if the final price reflects competitive pressure or a lack thereof. Without detailed bid data, it's difficult to definitively assess price discovery.
What are the specific technical risks associated with enhancing the AN/TPQ-36(V)8 and AN/TPQ-37 systems, and how are they being mitigated?
Enhancing aging radar systems presents inherent technical risks, including integration challenges with newer technologies, potential obsolescence of underlying components, and unforeseen performance limitations. Mitigation strategies likely involve detailed system engineering, rigorous testing protocols, and close collaboration between Lockheed Martin and the DoD. The contract's success hinges on proactively addressing these technical hurdles.
Beyond the immediate military application, what is the broader technological or industrial impact of this radar system enhancement?
This enhancement primarily serves a direct military need for improved counter-fire capabilities. However, advancements in radar technology, signal processing, and data analysis developed under this contract could potentially have dual-use applications in areas like civilian air traffic control, weather forecasting, or geological surveying. The extent of this broader impact depends on the specific innovations achieved and their potential for commercialization.
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: W15P7T11RT201
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 497 ELECTRONICS PKWY BLDG 5, LIVERPOOL, NY, 13088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,779,206,662
Exercised Options: $1,848,609,935
Current Obligation: $928,365,084
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-02-29
Current End Date: 2017-10-30
Potential End Date: 2017-10-30 00:00:00
Last Modified: 2025-04-22
More Contracts from Lockheed Martin Corporation
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Department of Defense)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Department of Defense)
- THE Purpose of This Modification IS to Award F-35A Lrip 15 Usaf Aircraft* Long Lead Funding — $30.1B (Department of Defense)
- THE Purpose of This Contract IS to Award Long Lead Funding for F-35A, F-35B, and F-35C Aircraft for U.S. Services, Non-Dod Partners, and FMS Customers — $24.5B (Department of Defense)
- Lrip 11 AAC — $12.3B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)