DoD awards $34.2M TAS contract to DRS Sustainment Systems, Inc. for industrial machinery
Contract Overview
Contract Amount: $34,203,301 ($34.2M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2011-02-28
End Date: 2012-10-19
Contract Duration: 599 days
Daily Burn Rate: $57.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FULL RATE OVERHAUL TAS: 97 4930
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63121
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $34.2 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: FULL RATE OVERHAUL TAS: 97 4930 Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Fixed Price Incentive contract type may incentivize cost control. 3. The contract duration of 599 days is relatively short. 4. No small business participation noted.
Value Assessment
Rating: fair
The award amount of $34.2M for a 599-day period for TAS equipment needs further benchmarking against similar DoD procurements. Without specific unit details or comparison data, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition procurement. This lack of competition may have limited price discovery and potentially led to a higher overall cost for the government.
Taxpayer Impact: The absence of competition could mean taxpayers did not benefit from the most cost-effective solution available.
Public Impact
Military readiness may be impacted by the availability and maintenance of critical TAS equipment. Dependence on a single supplier for essential machinery could pose supply chain risks. The specific application of this machinery within the DoD is not detailed, limiting public understanding of its necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- No small business participation
Positive Signals
- Fixed Price Incentive contract type
- Awarded to established defense contractor
Sector Analysis
The defense sector frequently procures specialized machinery and equipment. Spending benchmarks for similar industrial truck and tractor machinery within the DoD can vary significantly based on quantity, specifications, and contract type.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could suggest a lack of outreach or specific requirements that favored larger entities.
Oversight & Accountability
Contract oversight by the Defense Contract Management Agency (DCMA) is crucial for ensuring performance and adherence to contract terms. The fixed-price incentive structure requires careful monitoring to ensure cost efficiencies are realized.
Related Government Programs
- Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may have inflated costs.
- Sole-source award limits market research and potential savings.
- No small business participation noted.
- Contract duration is relatively short, potentially leading to frequent re-procurement.
- Specific equipment details and operational necessity are not clear.
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 $34.2 million to DRS SUSTAINMENT SYSTEMS, INC. FULL RATE OVERHAUL TAS: 97 4930
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 $34.2 million.
What is the period of performance?
Start: 2011-02-28. End: 2012-10-19.
What specific TAS equipment was procured, and what is its operational importance to the Department of Defense?
The specific Tactical Assembly System (TAS) equipment procured is not detailed in the provided data. However, TAS equipment generally refers to systems used for assembling, disassembling, and maintaining various military assets, including vehicles and weapon systems. Its operational importance likely lies in maintaining the readiness and functionality of the DoD's extensive equipment inventory, ensuring that critical assets are kept in optimal working condition.
What were the justifications for not competing this contract, and were alternative sources considered?
The provided data states the contract was 'NOT COMPETED' but does not offer the specific justification. Typically, non-competitive awards occur due to reasons such as urgent and compelling needs, the unavailability of other sources, or when a specific technology or proprietary item is required. Without further documentation, it is unknown if alternative sources were considered or if a formal justification for sole-sourcing was documented and approved.
How does the fixed-price incentive (FPI) structure in this contract aim to balance cost control with contractor performance?
A Fixed Price Incentive (FPI) contract establishes a target cost, target profit, and a price ceiling. The contractor and the government share any cost savings below the target cost, and any cost overruns above the target cost (up to the ceiling) are also shared. This structure incentivizes the contractor to control costs to achieve a higher profit, while the price ceiling protects the government from excessive spending. The effectiveness depends on the accuracy of the initial target cost and profit.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA (UEI: 428869465)
Address: 201 EVANS LANE, SAINT LOUIS, MO, 63121
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,203,301
Exercised Options: $34,203,301
Current Obligation: $34,203,301
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA851904D0006
IDV Type: IDC
Timeline
Start Date: 2011-02-28
Current End Date: 2012-10-19
Potential End Date: 2012-10-19 00:00:00
Last Modified: 2018-12-19
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