DoD awards $120M for night vision equipment, highlighting a significant investment in advanced sensor technology

Contract Overview

Contract Amount: $11,976,680 ($12.0M)

Contractor: DRS Network & Imaging Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2001-04-12

End Date: 2007-05-31

Contract Duration: 2,240 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200107!002446!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CJ406 !A!N!*!N! !20010412!20020830!037204125!037204125!061345351!N!DRS INFRARED TECHNOLOGIES, L P!13544 N CENTRAL EXPY !DALLAS !TX!75243!19000!113!48!DALLAS !DALLAS !TEXAS !+000006303430!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!J!2!003!B! !A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001!

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to DRS NETWORK & IMAGING SYSTEMS, LLC for work described as: 200107!002446!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CJ406 !A!N!*!N! !20010412!20020830!037204125!037204125!061345351!N!DRS INFRARED TECHNOLOGIES, L P!13544 N CENTRAL EXPY !DALLAS !TX!75243!19000!113!48!DALLAS !DALLA… Key points: 1. Contract value of $119.8M for night vision equipment suggests a substantial need for advanced surveillance and targeting capabilities. 2. The award to DRS Infrared Technologies, L.P. indicates a reliance on established players in the defense electronics sector. 3. A contract duration of over 5 years (from award to final delivery) points to long-term program requirements and potential for follow-on work. 4. The North American Industry Classification System (NAICS) code 334511 covers Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing, placing this contract within a specialized technological domain. 5. The contract's 'firm fixed price' nature aims to control costs for the government, though it places cost risk on the contractor. 6. The absence of small business set-aside flags suggests this contract was likely too specialized or large for typical small business participation.

Value Assessment

Rating: good

The contract value of $119.8 million for night vision equipment appears reasonable given the specialized nature of the technology and the multi-year duration. Benchmarking against similar advanced sensor systems in the defense sector would provide a more precise value-for-money assessment. The firm fixed price contract structure is a positive indicator for cost control, shifting risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 3 bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific number of bidders (3) is a moderate level of competition for a specialized defense contract.

Taxpayer Impact: Full and open competition, with multiple bidders, increases the likelihood that the Department of Defense secured competitive pricing for this critical night vision equipment, potentially saving taxpayer dollars compared to a sole-source award.

Public Impact

The primary beneficiaries are U.S. military personnel who will receive advanced night vision equipment to enhance operational capabilities in low-light conditions. The services delivered include the manufacturing and supply of night vision equipment, crucial for surveillance, targeting, and navigation. The geographic impact is likely global, supporting deployed military forces wherever they operate. Workforce implications include employment opportunities within DRS Infrared Technologies, L.P. and its supply chain, particularly in specialized manufacturing and engineering roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's fixed price does not adequately account for unforeseen production challenges.
Dependence on a single contractor (DRS Infrared Technologies, L.P.) for a critical technology could pose supply chain risks.
The long contract duration might lead to technology obsolescence if not managed proactively.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed price contract structure provides cost certainty for the government.
The contractor, DRS Infrared Technologies, L.P., is likely experienced in producing advanced electro-optical systems.

Sector Analysis

This contract falls within the Defense Industrial Base, specifically the segment focused on advanced electronics and sensor systems. The market for night vision and other electro-optical/infrared (EO/IR) systems is highly specialized, dominated by a few key defense contractors. Spending in this area is driven by military modernization efforts and the need for superior situational awareness in all operational environments. Comparable spending benchmarks would involve analyzing other large contracts for similar EO/IR systems awarded by the DoD.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the specialized nature of night vision technology and the significant contract value, it is unlikely that small businesses were the primary awardees, though they may participate as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses within the defense industrial base for this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms, quality standards, and delivery schedules. Accountability measures are embedded in the firm fixed price structure and performance requirements. Transparency is generally maintained through contract award databases, though specific technical details of the equipment may be classified.

Related Government Programs

Night Vision Goggles
Targeting Systems
Electro-Optical Infrared Systems
Defense Electronics Manufacturing
Military Sensor Technology

Risk Flags

Long contract duration increases risk of technological obsolescence.
Firm Fixed Price contract places cost risk on contractor.
Potential supply chain dependencies for specialized components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to DRS NETWORK & IMAGING SYSTEMS, LLC. 200107!002446!2100!AB07 !USA COMMUNICATIONS-ELECTRONICS !DAAB0701CJ406 !A!N!*!N! !20010412!20020830!037204125!037204125!061345351!N!DRS INFRARED TECHNOLOGIES, L P!13544 N CENTRAL EXPY !DALLAS !TX!75243!19000!113!48!DALLAS !DALLAS !TEXAS !+000006303430!N!N!000000000000!5855!NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !334511!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is DRS NETWORK & IMAGING SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2001-04-12. End: 2007-05-31.

What is the specific type and capability of the 'Night Vision Equipment, Emitted and Reflected Radia' being procured?

The contract description 'NIGHT VISION EQUIPMENT, EMITTED AND REFLECT RADIA' (NAICS 334511) suggests the procurement of advanced systems that can detect and amplify ambient light (like starlight or moonlight) or utilize infrared illumination for visibility in low-light or no-light conditions. This could encompass a range of equipment, from individual soldier-worn goggles and weapon sights to larger vehicle-mounted or airborne sensor platforms. The 'emitted and reflected radia' likely refers to the detection of electromagnetic radiation across various spectrums, including visible light and infrared, which are crucial for both passive (amplifying existing light) and active (using IR illuminators) night vision capabilities. The specific technical specifications, performance metrics (e.g., range, resolution, field of view), and form factor would be detailed in the contract's statement of work, which is not publicly available in this data extract.

How does the $119.8 million contract value compare to historical spending on similar night vision systems by the Department of Defense?

The $119.8 million awarded to DRS Infrared Technologies, L.P. represents a significant, but not unprecedented, investment in night vision technology. The Department of Defense consistently procures advanced electro-optical and infrared (EO/IR) systems, including night vision, to maintain battlefield superiority. Historical spending data reveals multi-billion dollar annual expenditures across various branches for such equipment. For instance, major programs like the Family of Weapon Sights (FWS) or various soldier system upgrades often involve contracts in the tens to hundreds of millions of dollars over their lifecycle. This specific award appears to be for a substantial quantity or a highly advanced generation of night vision equipment, aligning with ongoing modernization efforts. A detailed comparison would require analyzing spending trends for specific system types (e.g., goggles vs. vehicle sights) over the past decade.

What are the key performance risks associated with this contract for DRS Infrared Technologies, L.P.?

As a firm fixed price contract, the primary performance risk for DRS Infrared Technologies, L.P. lies in managing production costs to remain profitable while meeting stringent government specifications. Risks include potential cost overruns due to unforeseen manufacturing challenges, supply chain disruptions for specialized components, or difficulties in achieving the required performance thresholds for advanced night vision capabilities. Technological obsolescence is another risk; if the technology rapidly advances during the contract's multi-year execution, the delivered systems might be less capable than newer market offerings by the time of final delivery. Furthermore, meeting demanding delivery schedules and quality assurance standards set by the Department of Defense presents ongoing operational risks. Failure to meet these requirements could lead to penalties or contract termination.

What is the expected impact of this contract on the broader defense electronics market and competition?

This $119.8 million award to DRS Infrared Technologies, L.P. reinforces its position as a key player in the defense electronics market, particularly in the niche of advanced night vision and infrared systems. The full and open competition, with three bidders, suggests a moderately competitive landscape for this specific contract, but the overall market for such high-technology defense components is often concentrated among a few specialized firms. This award may signal a demand for specific technological advancements or capabilities that DRS excels at, potentially influencing R&D priorities for competitors. While it demonstrates market activity, it doesn't necessarily broaden competition significantly unless it encourages new entrants or spurs innovation among existing rivals to vie for future, similar contracts. The long-term impact depends on whether this leads to sustained investment in this technology area by the DoD and the competitive responses from other major defense contractors.

How does the contract duration of approximately 5 years (from award to final delivery) influence the assessment of value for money?

The contract duration, spanning from April 2001 to August 2007 (over 5 years), suggests a long-term requirement for the procured night vision equipment. For value-for-money assessment, this extended period allows for potential economies of scale in production, which can lower per-unit costs compared to shorter-term, smaller-batch procurements. It also implies a stable demand, enabling the contractor to invest in specialized manufacturing capabilities and potentially offer more competitive pricing over time. However, a longer duration also increases the risk of technological obsolescence; the value proposition must consider whether the technology remains relevant and effective throughout its service life. The firm fixed price structure helps mitigate cost escalation over this period, providing budget certainty for the government, which is a positive aspect of value realization.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 13544 N CENTRAL EXPY, DALLAS, TX, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline