State Department awards $42.9M contract for Counter-UAS support, with 285 days duration

Contract Overview

Contract Amount: $42,939,635 ($42.9M)

Contractor: Federal Resources Supply Company, LLC

Awarding Agency: Department of State

Start Date: 2024-09-18

End Date: 2025-06-30

Contract Duration: 285 days

Daily Burn Rate: $150.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INL FA5 MULTIPLE AWARD IDIQS - INL KYIV - COUNTERUAS PROJECT

Plain-Language Summary

Department of State obligated $42.9 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC for work described as: INL FA5 MULTIPLE AWARD IDIQS - INL KYIV - COUNTERUAS PROJECT Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract is a delivery order under an IDIQ, indicating potential for future task orders. 3. Fixed-price contract type generally shifts risk to the contractor. 4. The award is for Counter-UAS project support, a critical area for diplomatic security. 5. The duration of 285 days suggests a focused, short-term project. 6. The North American Industry Classification System (NAICS) code 334516 points to analytical laboratory instrument manufacturing, which may be a component of the counter-UAS solution.

Value Assessment

Rating: good

The contract value of $42.9 million for a 285-day period appears reasonable for specialized counter-UAS support. Benchmarking against similar projects is challenging without more specific details on the services rendered. However, the firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor performs efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's choice of full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces, ensuring that government funds are used more efficiently.

Public Impact

The primary beneficiaries are likely personnel and facilities requiring protection from unmanned aerial systems. Services delivered will focus on counter-UAS capabilities, potentially including technology, training, or operational support. Geographic impact is likely concentrated in areas where the Department of State operates and faces UAS threats. Workforce implications may involve specialized technical personnel for the implementation and operation of counter-UAS systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential disconnect between NAICS code (Analytical Laboratory Instrument Manufacturing) and the stated purpose (Counter-UAS Project), requiring clarification on how instruments relate to the solution.
Limited duration (285 days) may indicate a pilot program or a specific phase, raising questions about long-term sustainment and follow-on needs.
The contract is a delivery order under an IDIQ, meaning the full scope and ultimate cost across all orders are not yet defined, posing a risk of scope creep or unbudgeted expenditures.
Lack of detail on specific performance metrics makes it difficult to assess the effectiveness and value for money beyond the initial award.

Positive Signals

Awarded under full and open competition, which generally promotes competitive pricing and a wider range of potential solutions.
Firm fixed-price contract type shifts cost risk to the contractor, incentivizing efficient performance.
The contract addresses a critical and evolving security need (Counter-UAS), indicating proactive risk mitigation by the agency.
The IDIQ structure allows for flexibility in addressing future needs within the counter-UAS domain.

Sector Analysis

The counter-UAS market is a rapidly growing sector driven by increasing threats from unmanned aerial systems across military, security, and civilian applications. This contract falls within the broader defense and security technology sector. While the NAICS code points to analytical instruments, the application in counter-UAS suggests a focus on detection, tracking, identification, or neutralization technologies. Comparable spending benchmarks are difficult to establish without more granular details on the specific technologies and services procured.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not mention any specific subcontracting requirements for small businesses (st: ''). This suggests that the primary awardee is likely a large business, and there may be limited direct opportunities for small businesses unless they are part of the larger contractor's supply chain or are awarded future task orders under the IDIQ. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a delivery order under an IDIQ, oversight would involve monitoring performance against task order requirements and ensuring compliance with contract terms. Transparency is facilitated by the public nature of contract awards, but detailed performance metrics and specific oversight mechanisms are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Counter-UAS Programs
Department of Homeland Security UAS Detection and Mitigation
Federal Aviation Administration UAS Regulations
Intelligence Community UAS Threat Assessments

Risk Flags

Potential NAICS code mismatch
Short contract duration may not address long-term needs
IDIQ structure requires careful management to prevent scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $42.9 million to FEDERAL RESOURCES SUPPLY COMPANY, LLC. INL FA5 MULTIPLE AWARD IDIQS - INL KYIV - COUNTERUAS PROJECT

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES SUPPLY COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $42.9 million.

What is the period of performance?

Start: 2024-09-18. End: 2025-06-30.

What specific counter-UAS technologies or services are being procured under this contract, and how do they align with the stated NAICS code?

The contract's stated purpose is a 'COUNTERUAS PROJECT' awarded to 'FEDERAL RESOURCES SUPPLY COMPANY, LLC'. However, the associated NAICS code is '334516 - Analytical Laboratory Instrument Manufacturing'. This presents a potential discrepancy. It is possible that the procured items are specialized analytical instruments used for detecting, identifying, or analyzing components of unmanned aerial systems, or perhaps instruments used in testing and development of counter-UAS systems. Alternatively, the NAICS code might be a broad categorization, and the actual services or equipment procured are more directly related to operational counter-UAS capabilities such as sensors, jammers, or interceptors. Clarification from the Department of State regarding the specific nature of the goods or services is needed to reconcile this apparent mismatch and understand the precise application of the funds.

How does the $42.9 million award compare to other counter-UAS contracts awarded by the Department of State or similar agencies?

Direct comparison of the $42.9 million award value is challenging without knowing the specific scope of work, duration, and type of counter-UAS solution (e.g., technology procurement, system integration, operational support, training). However, counter-UAS initiatives are increasingly significant investments for government agencies. Contracts in this domain can range from tens of millions for system development and deployment to hundreds of millions for large-scale programs. The firm fixed-price nature of this award suggests a defined scope, and the value appears commensurate with a substantial project phase or a specific set of capabilities. Further analysis would require benchmarking against contracts with similar deliverables and timeframes, which are not detailed in the provided data.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include technological obsolescence in the rapidly evolving counter-UAS field, potential performance issues with the procured systems or services, and the possibility of scope creep if the IDIQ structure is not managed tightly. Given the firm fixed-price contract type, the primary risk of cost overrun lies with the contractor, Federal Resources Supply Company, LLC. Mitigation strategies likely involve robust government oversight of performance, adherence to defined milestones, and clear task order definitions under the IDIQ. The Department of State's contracting officers are responsible for monitoring performance and ensuring the contractor meets all requirements. The short duration (285 days) may also mitigate long-term technology risk.

What is the track record of Federal Resources Supply Company, LLC in delivering similar counter-UAS solutions or complex technology projects for the government?

Information regarding Federal Resources Supply Company, LLC's specific track record in counter-UAS solutions is not provided in the data. To assess their capability, one would need to examine their past performance on similar government contracts, particularly those involving defense, security, or advanced technology systems. This would include reviewing past performance evaluations, any history of contract disputes or terminations, and their experience with firm fixed-price contracts of comparable size and complexity. A thorough review of their contract history with the Department of State and other agencies would be necessary to gauge their reliability and expertise in this specialized area.

How does the 285-day duration impact the overall effectiveness and long-term value of this counter-UAS project?

The 285-day duration suggests this contract may represent a specific phase, a pilot program, or a short-term operational requirement rather than a comprehensive, long-term solution. While it allows for focused execution and potentially quicker deployment of capabilities, it raises questions about sustainability and follow-on needs. If this is a pilot, its success will be critical for justifying future, potentially larger, investments. If it's for a specific event or short-term operational need, its effectiveness will be measured by its ability to meet that immediate requirement. The Department of State will need a strategy for addressing ongoing counter-UAS needs beyond this contract's end date, potentially through subsequent IDIQ orders or new contract vehicles.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA5 DORP PR12259834

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 235-G LOG CANOE CIR, STEVENSVILLE, MD, 21666

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,939,635

Exercised Options: $42,939,635

Current Obligation: $42,939,635

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 19AQMM21D0042

IDV Type: IDC

Timeline