DoD Awards $69.4M for Aircraft Cargo Loader Overhauls to DRS Sustainment Systems
Contract Overview
Contract Amount: $69,412,343 ($69.4M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2014-12-22
End Date: 2016-10-31
Contract Duration: 679 days
Daily Burn Rate: $102.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: IGF::OT::IGF TUNNER 60K AIRCRAFT CARGO LOADER OVERHAULS/VEHICLE MODIFICATIONS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63121
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $69.4 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: IGF::OT::IGF TUNNER 60K AIRCRAFT CARGO LOADER OVERHAULS/VEHICLE MODIFICATIONS Key points: 1. Contract awarded to DRS Sustainment Systems, Inc. for aircraft cargo loader overhauls and vehicle modifications. 2. The contract was awarded under full and open competition. 3. The total value of the contract is $69.4 million. 4. The contract period spans from December 2014 to October 2016. 5. The contract type is Fixed Price Incentive.
Value Assessment
Rating: good
The contract's fixed-price incentive structure aims to balance cost control with performance incentives. Benchmarking against similar overhaul contracts for specialized military equipment is necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust process for soliciting bids and ensuring competitive pricing. This method typically leads to better price discovery and value for the government.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible pricing through a competitive bidding process.
Public Impact
Ensures operational readiness of critical aircraft cargo handling equipment. Supports maintenance and modification services for military logistics. Contributes to the sustainment of defense assets. Impacts the supply chain for specialized vehicle repair.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed Price Incentive contract type can lead to cost overruns if not managed carefully.
- Contract duration of 679 days requires diligent oversight.
- No specific mention of small business participation.
Positive Signals
- Awarded under full and open competition.
- Addresses critical sustainment needs for defense equipment.
- Clear contract award with defined scope.
Sector Analysis
This contract falls within the industrial machinery manufacturing and maintenance sector, supporting defense logistics. Spending benchmarks for similar specialized vehicle overhaul contracts can vary significantly based on complexity and scale.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight mechanisms. However, the effectiveness of this oversight in controlling costs and ensuring performance requires ongoing monitoring.
Related Government Programs
- Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Fixed Price Incentive contract risk.
- Potential for cost overruns.
- Long contract duration requires sustained oversight.
- Lack of explicit small business set-aside.
Tags
industrial-truck-tractor-trailer-and-sta, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.4 million to DRS SUSTAINMENT SYSTEMS, INC. IGF::OT::IGF TUNNER 60K AIRCRAFT CARGO LOADER OVERHAULS/VEHICLE MODIFICATIONS
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $69.4 million.
What is the period of performance?
Start: 2014-12-22. End: 2016-10-31.
What was the final cost compared to the initial target cost, and how did the incentive structure influence the final price?
The final cost relative to the target cost under a Fixed Price Incentive (FPI) contract is crucial for assessing value. The incentive structure is designed to share cost savings or overruns between the government and the contractor based on pre-defined formulas. Analyzing the final negotiated price against the target and understanding the contractor's performance against established metrics would reveal the effectiveness of the incentive clauses in achieving both cost efficiency and desired outcomes.
Were there any performance issues or delays during the contract period that impacted operational readiness or incurred additional costs?
Performance issues or delays on a contract for aircraft cargo loader overhauls could directly impact the operational readiness of military units relying on this equipment. Such problems might necessitate costly expedited repairs, extend deployment timelines, or require the use of less efficient alternative equipment. A review of contract performance reports, delivery schedules, and any issued modifications or claims would highlight potential risks and their impact on both mission effectiveness and taxpayer funds.
How does the per-unit cost of these overhauls compare to industry benchmarks for similar specialized military vehicle modifications?
Comparing the per-unit cost of these overhauls to industry benchmarks is essential for evaluating the government's procurement value. Specialized military equipment often commands higher prices due to stringent requirements, unique modifications, and limited production runs. However, significant deviations from comparable contracts, adjusted for complexity and scope, could indicate potential overpricing or exceptional value. Benchmarking provides a critical data point for assessing the fairness and competitiveness of the awarded price.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $177,489,879
Exercised Options: $177,489,879
Current Obligation: $69,412,343
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA851914D0001
IDV Type: IDC
Timeline
Start Date: 2014-12-22
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2021-02-19
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