DoD Awards $29.9M for Tunner Loader Overhaul to DRS Sustainment Systems
Contract Overview
Contract Amount: $29,947,937 ($29.9M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2018-12-27
End Date: 2020-09-30
Contract Duration: 643 days
Daily Burn Rate: $46.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: TUNNER LOADER OVERHAUL
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63121
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $29.9 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: TUNNER LOADER OVERHAUL Key points: 1. Contract awarded to a single vendor, DRS Sustainment Systems, Inc. 2. The contract is for the overhaul of Tunner Loaders, a critical piece of equipment. 3. Fixed Price Incentive contract type suggests potential for cost savings if performance targets are met. 4. The spending falls under the Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing sector.
Value Assessment
Rating: fair
The award amount of $29.9M for 643 days of work appears reasonable given the specialized nature of heavy equipment overhaul. Benchmarking against similar complex machinery repairs would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential equipment maintenance, ensuring operational readiness for the Air Force. The competitive award process aims to maximize value for the investment.
Public Impact
Ensures operational readiness of Air Force logistics capabilities. Supports specialized manufacturing and maintenance jobs within the defense industrial base. Investment in maintaining aging, critical military equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns with Fixed Price Incentive contracts if not closely managed.
- Limited visibility into the specific overhaul scope and required parts.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical operational need for the Air Force.
- Contract type incentivizes contractor performance.
Sector Analysis
This contract falls within the Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing sector, which supports the production and maintenance of specialized material handling equipment crucial for military logistics operations.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation may be needed to assess small business involvement.
Oversight & Accountability
The Department of Defense's oversight mechanisms should ensure that the Fixed Price Incentive contract is managed effectively to control costs and achieve the required overhaul standards for the Tunner Loaders.
Related Government Programs
- Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns.
- Limited visibility into specific scope and deliverables.
- Reliance on a single vendor for a critical overhaul.
- Aging equipment may require unforeseen extensive repairs.
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 $29.9 million to DRS SUSTAINMENT SYSTEMS, INC. TUNNER LOADER OVERHAUL
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $29.9 million.
What is the period of performance?
Start: 2018-12-27. End: 2020-09-30.
What is the specific scope of work for the Tunner Loader overhaul and what are the key performance metrics tied to the incentive structure?
The provided data lacks specifics on the overhaul scope. Typically, such overhauls involve comprehensive inspection, repair, and replacement of worn components to restore full functionality. Key performance metrics for an incentive contract would likely relate to timely completion, adherence to quality standards, and potentially cost efficiency, directly impacting the final price paid by the government.
How does the $29.9M contract value compare to the estimated total lifecycle cost of maintaining and overhauling the Air Force's fleet of Tunner Loaders?
Without data on the total fleet size, age, and historical maintenance costs, it's difficult to benchmark this $29.9M award against the overall lifecycle cost. This single award represents a significant investment for a specific set of overhauls, and its true value depends on the number of units serviced and the expected operational lifespan extension achieved.
What is the historical performance and reliability of DRS Sustainment Systems, Inc. on similar defense contracts, particularly those involving heavy equipment overhauls?
Assessing DRS Sustainment Systems' past performance on comparable contracts is crucial for evaluating risk. Information on their track record regarding on-time delivery, quality of work, cost control, and responsiveness to government needs would provide insight into the likelihood of successful contract execution and value realization for this Tunner Loader overhaul.
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
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA
Address: 4201 INNOVATION WAY, BRIDGETON, MO, 63044
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: $29,959,970
Exercised Options: $29,959,970
Current Obligation: $29,947,937
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA851914D0001
IDV Type: IDC
Timeline
Start Date: 2018-12-27
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2024-12-18
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