DoD awards $46.2M for 36 Giraffe radar systems to SAAB, Inc., with no competition

Contract Overview

Contract Amount: $46,204,620 ($46.2M)

Contractor: Saab, Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-29

End Date: 2026-12-07

Contract Duration: 434 days

Daily Burn Rate: $106.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS REQUIREMENT IS FOR UP TO THIRTY-SIX (36) GIRAFFE 1X (G1X) SHORT TO MEDIUM RANGE RADAR SYSTEMS.

Place of Performance

Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $46.2 million to SAAB, INC for work described as: THIS REQUIREMENT IS FOR UP TO THIRTY-SIX (36) GIRAFFE 1X (G1X) SHORT TO MEDIUM RANGE RADAR SYSTEMS. Key points: 1. The contract's value of $46.2 million for 36 radar systems suggests a per-unit cost of approximately $1.28 million. 2. The sole-source nature of this award raises questions about potential overpricing and the absence of market-driven cost efficiencies. 3. A single bidder indicates a lack of competitive pressure, which could lead to suboptimal pricing and limited innovation. 4. The firm-fixed-price contract type shifts cost risk to the contractor, but the lack of competition may still inflate the baseline price. 5. This procurement supports the Department of the Army's operational capabilities with advanced radar technology. 6. The duration of the contract (434 days) suggests a focused delivery and implementation timeline for these critical systems.

Value Assessment

Rating: questionable

The awarded amount of $46.2 million for 36 Giraffe 1X radar systems equates to roughly $1.28 million per unit. Without competitive bids or publicly available benchmark data for similar systems, it is difficult to definitively assess value for money. However, the absence of competition inherently limits the government's ability to secure the best possible price. This price point should be scrutinized against any historical SAAB contracts for similar equipment or against publicly available pricing for comparable radar systems from other manufacturers.

Cost Per Unit: Approximately $1.28 million per unit (36 units / $46.2M)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, SAAB, Inc., was solicited. The data does not indicate any justification for this sole-source award, such as a specific technological requirement or a lack of alternative sources. The absence of a competitive bidding process means that the Department of the Army did not explore pricing or capabilities from other potential suppliers, which is a significant departure from standard procurement practices aimed at maximizing value.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding. Without multiple offers, there is no market pressure to drive down costs, potentially leading to a higher overall expenditure for these radar systems.

Public Impact

The primary beneficiaries are the Department of the Army, which will receive advanced radar systems to enhance its operational capabilities. The contract will deliver thirty-six (36) Giraffe 1X Short to Medium Range Radar Systems. These systems are likely to be deployed to support critical defense missions, potentially impacting national security. The contract is associated with New York (ST: NY, SN: NEW YORK), suggesting potential manufacturing or delivery activities in that state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant award raises concerns about price reasonableness and potential for inflated costs.
Absence of justification for sole-source award requires further investigation to ensure adherence to procurement regulations.
Limited transparency into the decision-making process for not pursuing a competitive solicitation.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risk for the government once the price is set.
Procurement of advanced radar systems addresses a specific military requirement, potentially enhancing defense capabilities.

Sector Analysis

The defense sector, specifically military equipment manufacturing, is characterized by high technological complexity and significant government investment. The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' covers companies involved in producing such advanced systems. This contract for radar systems fits squarely within this specialized market, where a few key players often dominate due to proprietary technology and established relationships. Benchmarking spending in this area is challenging without access to classified or proprietary data, but significant investments are typical for advanced defense electronics.

Small Business Impact

The provided data indicates that this contract was not competed and does not mention any small business set-aside provisions (SS: false, SB: false). Therefore, there is no direct indication of small business participation or subcontracting opportunities stemming from this specific award. The sole-source nature of the procurement limits the potential for small businesses to compete for this prime contract. Further analysis would be needed to determine if SAAB, Inc. has any subcontracting plans that include small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's internal procurement review processes and potentially the Department of the Army's Inspector General. The firm-fixed-price nature of the contract provides a degree of accountability regarding the final cost, assuming the scope of work remains unchanged. Transparency is limited due to the sole-source nature and lack of public justification; however, contract award details are typically recorded in federal procurement databases.

Related Government Programs

Department of Defense Radar Systems Procurement
Army Air Defense Systems
Search and Detection Equipment Manufacturing
SAAB Defense Contracts

Risk Flags

Sole-source award without apparent justification
Potential for non-competitive pricing
Lack of transparency in procurement decision

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.2 million to SAAB, INC. THIS REQUIREMENT IS FOR UP TO THIRTY-SIX (36) GIRAFFE 1X (G1X) SHORT TO MEDIUM RANGE RADAR SYSTEMS.

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 Army).

What is the total obligated amount?

The obligated amount is $46.2 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-12-07.

What is the track record of SAAB, Inc. in delivering similar radar systems to the U.S. military?

SAAB, Inc., a subsidiary of the Swedish defense company SAAB AB, has a history of supplying defense equipment globally, including radar systems. While specific details on past U.S. military contracts for Giraffe 1X systems are not readily available in the public domain, SAAB is known for its advanced radar technology, including the Giraffe family, which is used by several NATO and international partners. Their experience in developing and delivering sophisticated surveillance and targeting systems suggests a capability to meet the technical requirements of the U.S. Army. However, a deeper dive into contract performance data, delivery timelines, and any past issues or successes with U.S. government contracts would be necessary for a comprehensive assessment of their track record for this specific award.

How does the per-unit cost of $1.28 million for the Giraffe 1X radar compare to similar systems or previous procurements?

The per-unit cost of approximately $1.28 million for the Giraffe 1X radar system is difficult to benchmark definitively without access to proprietary pricing data or specific competitive bid results for comparable systems. Radar systems vary significantly in capability, range, sophistication, and intended use, which heavily influences their cost. For instance, short-range, ground-based air defense radars might differ substantially in price from long-range, multi-function surveillance radars. Given this is a sole-source award, there's no direct competitive data to establish a market price. Historical data on previous U.S. military procurements of similar class radars, if available and comparable, would be the best reference point. Without such data, assessing whether $1.28 million represents good value is speculative, but the lack of competition suggests potential for higher pricing than in a competitive environment.

What are the specific risks associated with a sole-source procurement of this magnitude?

Sole-source procurements, especially for significant dollar amounts like $46.2 million, carry inherent risks. The primary risk is the potential for inflated pricing due to the absence of competitive pressure. Without multiple bidders vying for the contract, the government loses the leverage to negotiate the best possible price and terms. This can lead to taxpayers footing a higher bill than necessary. Another risk is the potential for complacency from the sole provider, possibly impacting delivery schedules or quality if there's no external threat of losing future business. Furthermore, sole-source awards can stifle innovation by not allowing alternative solutions or technologies from other vendors to be considered. Transparency is also often reduced, making it harder to scrutinize the justification and fairness of the award.

What is the intended operational impact of the Giraffe 1X radar systems for the Department of the Army?

The Giraffe 1X is described as a short-to-medium range radar system, typically used for air surveillance, target detection, and potentially weapon control. For the Department of the Army, these systems are likely intended to enhance battlefield awareness and air defense capabilities. They can provide crucial information on incoming aerial threats, such as aircraft, drones, and missiles, within their operational range. This allows for timely defensive responses and better coordination of military assets. The procurement suggests a need to modernize or expand the Army's radar network to counter evolving threats in the short-to-medium range airspace, thereby improving force protection and mission effectiveness.

Are there any publicly available benchmarks for the manufacturing of specialized defense instruments like radar systems?

Publicly available benchmarks for the manufacturing of specialized defense instruments like radar systems are scarce due to the proprietary nature of the technology and the classified aspects of military applications. While industry reports might provide market size estimates for the defense electronics sector or radar market overall, specific per-unit cost benchmarks for individual systems are rarely disclosed. Companies like SAAB operate in a market where technological advantage and intellectual property are key competitive factors. Therefore, direct cost comparisons are often limited to internal government cost analyses, classified intelligence, or highly aggregated market data. The NAICS code 334511 provides a classification for manufacturers but does not offer pricing benchmarks. Comparisons are typically made against previous contracts for similar, though not identical, systems awarded through competitive processes, or against international sales data where available.

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: W31P4Q25R0092

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, 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: $46,204,620

Exercised Options: $46,204,620

Current Obligation: $46,204,620

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline