DoD Spends $34M on Non-Recurring Engineering Services with DRS Sustainment Systems, Inc

Contract Overview

Contract Amount: $34,035,759 ($34.0M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2009-01-29

End Date: 2018-02-14

Contract Duration: 3,303 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NON-RECURRING ENGINEERING

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: NON-RECURRING ENGINEERING Key points: 1. Significant investment in specialized engineering services. 2. Sole-source contract raises questions about competition and pricing. 3. Long contract duration (2009-2018) suggests a sustained need. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The $34M contract for Non-Recurring Engineering (NRE) is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value is difficult. The firm fixed-price structure offers some cost certainty, but the lack of competition limits price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The absence of competition for a $34M contract likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers funded a significant sole-source engineering contract. Limited transparency into the necessity and cost-effectiveness of the NRE services. Potential for reduced innovation due to lack of competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Firm fixed-price contract

Sector Analysis

Engineering services, particularly NRE, are critical for developing and refining complex systems, often seen in the defense sector. Spending benchmarks for NRE can vary widely based on project scope and technological complexity.

Small Business Impact

The contract data indicates no small business participation. This suggests that the prime contractor, DRS Sustainment Systems, Inc., did not subcontract with small businesses for this significant engineering effort.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny to ensure the government received fair value. Further review of the justification for not competing the award is recommended.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks transparency.
Potential for inflated costs due to no competition.
No small business participation noted.
Long contract duration without clear competitive review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to DRS SUSTAINMENT SYSTEMS, INC. NON-RECURRING ENGINEERING

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 $34.0 million.

What is the period of performance?

Start: 2009-01-29. End: 2018-02-14.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the justification for the sole-source award. Typically, such justifications are based on factors like unique capabilities, urgent needs, or the unavailability of other sources. A thorough review would require accessing the contract file to understand the rationale behind bypassing the competitive process.

How does the $34M cost compare to industry benchmarks for similar non-recurring engineering projects?

Without specific details on the NRE project's scope, complexity, and deliverables, a direct cost comparison to industry benchmarks is challenging. NRE costs are highly project-dependent. However, the lack of competition for a $34M award raises concerns that the price may not reflect optimal market rates.

What was the ultimate impact or outcome of the Non-Recurring Engineering services provided under this contract?

The data indicates the contract was for Non-Recurring Engineering (NRE) services, which typically involve initial design, development, and testing. The long duration suggests these services were integral to a larger defense system. The specific impact or outcome would be tied to the success and deployment of the system these NRE services supported.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

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

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

Financial Breakdown

Contract Ceiling: $34,099,361

Exercised Options: $34,099,361

Current Obligation: $34,035,759

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline