Air Force awards $28M TUNNER LOADER overhaul contract to DRS Sustainment Systems, Inc

Contract Overview

Contract Amount: $28,088,040 ($28.1M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2021-12-31

End Date: 2023-01-31

Contract Duration: 396 days

Daily Burn Rate: $70.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: TUNNER LOADER OVERHAUL

Place of Performance

Location: WEST PLAINS, HOWELL County, MISSOURI, 65775

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: TUNNER LOADER OVERHAUL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Fixed Price Incentive, which aims to balance cost control with performance incentives. 3. The duration of the contract is 396 days, indicating a medium-term project. 4. The award is a delivery order, suggesting it's part of a larger contract vehicle. 5. The primary contractor, DRS Sustainment Systems, Inc., is involved in industrial machinery manufacturing. 6. The contract is for the overhaul of TUNNER LOADERS, critical equipment for aircraft ground support.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total contract value it belongs to or comparable overhaul costs for similar equipment. The fixed-price incentive structure suggests an attempt to manage costs, but the final price is subject to incentive targets. The raw dollar amount of $28 million for an overhaul of specialized equipment like TUNNER LOADERS appears substantial, warranting scrutiny to ensure it aligns with industry standards and the scope of work.

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 a bid. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and terms for the government. The open competition suggests that the Air Force sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of innovative solutions, potentially leading to cost savings or improved service delivery.

Public Impact

The U.S. Air Force benefits from the overhaul of its TUNNER LOADER fleet, ensuring operational readiness. Services delivered include the repair and refurbishment of specialized ground support equipment. The geographic impact is likely concentrated at Air Force bases where these loaders are utilized. Workforce implications may include skilled technicians and mechanics involved in the overhaul process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of work for the overhaul.
Potential for cost overruns if incentive targets are not met or if unforeseen issues arise during overhaul.
Dependence on a single contractor for a critical piece of equipment's maintenance.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed Price Incentive contract type aims to align contractor and government interests for cost efficiency.
The contractor, DRS Sustainment Systems, Inc., operates within the industrial machinery manufacturing sector, suggesting relevant expertise.

Sector Analysis

The contract falls within the Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing sector. This sector is crucial for logistics and ground support operations across various industries, including defense. Spending in this area is often driven by the need to maintain aging fleets of specialized equipment. Comparable spending benchmarks would typically involve the cost of overhauling similar heavy-duty industrial vehicles, factoring in complexity, parts, and labor.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of TUNNER LOADER overhauls and the potential value, it is likely that larger, established companies with specific expertise and manufacturing capabilities were the primary bidders. Subcontracting opportunities for small businesses might exist for specific components or services, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Accountability measures are embedded in the Fixed Price Incentive contract type, which links contractor profit to achieving specific cost and performance targets. Transparency is generally facilitated through contract award databases, though detailed statements of work and performance reports may be less publicly accessible.

Related Government Programs

Ground Support Equipment Maintenance
Air Force Logistics Modernization
Defense Industrial Base Manufacturing
Heavy Equipment Overhaul Contracts

Risk Flags

Potential for cost overruns due to incentive structure.
Scope of work details are not publicly available.
Limited information on contractor's specific past performance for this exact equipment type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 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 $28.1 million.

What is the period of performance?

Start: 2021-12-31. End: 2023-01-31.

What is the specific scope of work included in the TUNNER LOADER overhaul?

The provided data does not detail the specific scope of work for the TUNNER LOADER overhaul. Typically, such overhauls involve comprehensive inspection, repair, replacement of worn parts, refurbishment of systems (e.g., hydraulic, electrical, engine), and testing to ensure the equipment meets original specifications or updated performance standards. The exact tasks would be defined in the contract's Statement of Work (SOW), which is not publicly available in this dataset. Understanding the SOW is crucial for assessing the value and appropriateness of the $28 million award.

How does the $28 million award compare to historical spending on TUNNER LOADER overhauls?

Without access to historical contract data specifically for TUNNER LOADER overhauls by the Air Force or other branches, a direct comparison is not possible. The $28 million figure represents the value of this particular delivery order. To assess historical spending patterns, one would need to analyze past awards for similar services, considering factors like the number of units overhauled, the extent of the work performed, inflation, and changes in technology or parts costs over time. A trend analysis of such data would reveal if this award is consistent with, higher than, or lower than previous spending.

What are the key performance metrics and incentive targets for this Fixed Price Incentive contract?

The specific key performance metrics (KPIs) and incentive targets for this Fixed Price Incentive (FPI) contract are not detailed in the provided data. In an FPI contract, the government and contractor agree on target cost, target profit, and a price ceiling. The final price is determined by how the final cost compares to the target cost, with profit adjusting based on pre-defined formulas. Incentives are typically tied to meeting or exceeding performance standards (e.g., delivery schedule, quality of overhaul) or cost savings. Without these specifics, it's difficult to fully evaluate the risk and reward structure for both parties.

What is the track record of DRS Sustainment Systems, Inc. with similar government contracts?

DRS Sustainment Systems, Inc. operates within the defense industrial base and has a history of providing sustainment and manufacturing services. While specific details on their track record with TUNNER LOADER overhauls are not provided here, their involvement in industrial machinery manufacturing suggests they possess relevant capabilities. A thorough assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and their experience with similar complex overhaul projects for the Department of Defense or other federal agencies.

What is the risk associated with the 'Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing' classification for this contract?

The classification 'Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing' indicates the general industry category of the contractor and the equipment involved. The primary risks associated with this classification for an overhaul contract typically revolve around the availability and cost of specialized parts, the complexity of the machinery, the need for highly skilled labor, and potential obsolescence of older models. For TUNNER LOADERS, which are critical ground support equipment, risks could include extended downtime if the overhaul is delayed, or if the refurbished equipment does not meet performance expectations, impacting Air Force operational readiness.

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: $28,088,040

Exercised Options: $28,088,040

Current Obligation: $28,088,040

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