Army Spends $105M on 274 M1000 Trailers from DRS Sustainment Systems

Contract Overview

Contract Amount: $104,810,774 ($104.8M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2009-05-20

End Date: 2015-09-30

Contract Duration: 2,324 days

Daily Burn Rate: $45.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCUREMENT OF 274 EACH M1000 TRAILERS

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63121

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $104.8 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: PROCUREMENT OF 274 EACH M1000 TRAILERS Key points: 1. Significant investment in specialized trailers for military logistics. 2. Sole-source procurement raises questions about price discovery and competition. 3. Long contract duration (2009-2015) suggests potential for cost overruns or evolving needs. 4. Focus on a niche manufacturing sector (Truck Trailer Manufacturing).

Value Assessment

Rating: questionable

The total award of $104.8M for 274 trailers results in an average price of approximately $384,000 per unit. Without specific details on the M1000 trailer's capabilities and features, it's difficult to benchmark against similar complex military equipment, but this price point warrants scrutiny, especially given the lack of competition.

Cost Per Unit: $384,000

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may have led to a higher overall cost for the government compared to a competed procurement.

Taxpayer Impact: The absence of competition likely resulted in taxpayers paying a premium for these trailers.

Public Impact

Ensures critical logistical capabilities for the Department of the Army. Supports a specific defense contractor, DRS Sustainment Systems, Inc. Procurement impacts the specialized truck trailer manufacturing industry. Long-term contract may reflect sustained operational requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High per-unit cost
Long contract duration
Lack of small business participation indicated

Positive Signals

Procures essential military equipment
Supports a specific defense industrial base capability

Sector Analysis

The procurement falls under Truck Trailer Manufacturing (NAICS 336212), a specialized segment of the manufacturing sector. Spending benchmarks for such niche, high-value military equipment are not readily available, but the significant dollar value suggests a substantial investment in specialized logistics.

Small Business Impact

The data indicates that small business participation was not a factor in this sole-source award (sb: false). This procurement did not appear to leverage small businesses within the truck trailer manufacturing sector.

Oversight & Accountability

The sole-source nature of this award suggests that justification for non-competition should be thoroughly documented and reviewed by oversight bodies to ensure the government received fair value. Long-term contracts require ongoing monitoring for performance and cost efficiency.

Related Government Programs

Truck Trailer Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competitive pricing.
High per-unit cost requires strong justification.
Long contract duration increases risk of cost escalation.
No indication of small business participation.
Potential for outdated technology by contract end.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.8 million to DRS SUSTAINMENT SYSTEMS, INC. PROCUREMENT OF 274 EACH M1000 TRAILERS

Who is the contractor on this award?

The obligated recipient is DRS SUSTAINMENT SYSTEMS, 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 $104.8 million.

What is the period of performance?

Start: 2009-05-20. End: 2015-09-30.

What specific capabilities justify the high per-unit cost of the M1000 trailers, and how does this compare to commercially available or similarly equipped military trailers?

The high per-unit cost of approximately $384,000 for the M1000 trailers likely stems from specialized military-grade features, durability requirements, and potentially unique design specifications necessary for their intended operational environment. A detailed comparison with commercial equivalents or other military trailers would require access to technical specifications and performance data for the M1000, which is not publicly available. However, the sole-source nature of the award raises concerns that a competitive process might have yielded a lower price for comparable or adequate capabilities.

What were the specific justifications for awarding this contract on a sole-source basis, and were alternative solutions or competitors considered?

Sole-source justifications typically arise when only one responsible source can provide the required supplies or services. For the M1000 trailers, this could be due to proprietary technology, unique manufacturing capabilities held exclusively by DRS Sustainment Systems, Inc., or urgent requirements where no other vendor could meet the timeline. Without the specific justification documentation (e.g., Justification and Approval - J&A), it's impossible to definitively state the reasons or confirm if alternatives were thoroughly explored and deemed unsuitable.

Given the contract spanned from 2009 to 2015, how did the government ensure the pricing remained fair and reasonable throughout the period, and were there mechanisms for price adjustments?

The contract type was Firm Fixed Price (FFP), which generally shifts cost risk to the contractor. However, for long-duration FFP contracts, especially those awarded without competition, mechanisms like economic price adjustments (EPAs) or periodic reviews might be included to account for significant changes in material costs or labor. The government would typically rely on contract clauses, contractor reporting, and potentially independent cost estimates to monitor fairness, but the lack of competition limits the government's leverage in price negotiations over time.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 201 EVANS LN, SAINT LOUIS, MO, 90

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: $104,810,774

Exercised Options: $104,810,774

Current Obligation: $104,810,774

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV09D0107

IDV Type: IDC

Timeline