This paper discusses a solution to the problems posed by sensor resource allocation in an adaptive, distributed radar array. We have formulated a variant of the classic resource allocation problem, called the setting-based resource allocation problem, which reflects the challenges posed in domains in which sensors have multiple settings, each of which could be useful to multiple tasks. Further, we have implemented a solution to this problem that takes advantage of the locality of resources and tasks that is common to such domains. This solution involves translating tasks and possible resource configurations into bids that can be solved by a modified combinatorial auction, thus allowing us to make use of recent developments in the solution of such auctions. We have also developed an information-theoretic procedure for accomplishing this translation, which models the effect various sensor settings would have on the network's output.