Army awards $94.5M for 275 M1000 Semi Trailers to DRS Sustainment Systems, Inc

Contract Overview

Contract Amount: $94,543,491 ($94.5M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2010-02-03

End Date: 2015-09-30

Contract Duration: 2,065 days

Daily Burn Rate: $45.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 275 EACH HET M1000 SEMI TRAILERS.

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $94.5 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: 275 EACH HET M1000 SEMI TRAILERS. Key points: 1. High value contract for specialized military equipment. 2. Sole-source award raises questions about price discovery. 3. Long duration suggests potential for cost overruns or scope creep. 4. Truck Trailer Manufacturing sector, with specific military application.

Value Assessment

Rating: questionable

The total award amount is $94.5M for 275 units. The average price per unit is approximately $343,800. Without comparable contract data, it's difficult to definitively assess pricing, but this appears high for semi-trailers.

Cost Per Unit: $343,800 (estimated)

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these specialized trailers.

Public Impact

Ensures operational readiness for Army logistics by providing essential transport equipment. Supports a specific defense contractor, DRS Sustainment Systems, Inc. Long-term contract (2010-2015) implies sustained need for these trailers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High per-unit cost
Long contract duration

Positive Signals

Essential military equipment
Supports operational readiness

Sector Analysis

This contract falls within the Truck Trailer Manufacturing sector, specifically for heavy-duty military semi-trailers. Spending benchmarks for such specialized equipment are difficult to ascertain without direct comparisons, but the unit price appears elevated.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false and the contractor is DRS Sustainment Systems, Inc., a large entity.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further oversight may be needed to ensure the pricing is justified and that future requirements are competed where possible.

Related Government Programs

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

Risk Flags

Sole-source award limits competition and price discovery.
High estimated per-unit cost requires justification.
Long contract duration may not reflect current market prices.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.5 million to DRS SUSTAINMENT SYSTEMS, INC. 275 EACH HET M1000 SEMI 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 $94.5 million.

What is the period of performance?

Start: 2010-02-03. End: 2015-09-30.

What is the justification for the sole-source award of these M1000 Semi Trailers?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Without specific documentation, it's presumed the Army determined DRS Sustainment Systems, Inc. was the only viable source for these specialized trailers at the time of award.

How does the per-unit cost compare to commercial or similar military trailer acquisitions?

The estimated per-unit cost of approximately $343,800 is significantly higher than typical commercial semi-trailers. While military-grade equipment often incurs higher costs due to specialized features and durability requirements, this figure warrants further investigation against any available benchmarks for similar military transport assets.

What is the potential impact of the long contract duration on overall cost-effectiveness?

A long contract duration, like the 2065 days (approx. 5.6 years) for this award, can offer price stability but also carries risks. It may lock in prices that become uncompetitive over time or allow for scope creep. Conversely, it can provide predictable supply chain management for essential assets.

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, 63121

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: $94,543,491

Exercised Options: $94,543,491

Current Obligation: $94,543,491

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV09D0107

IDV Type: IDC

Timeline