DoD Awards $17.3M for Halvorsen Aircraft Cargo Loader Support to DRS Sustainment Systems

Contract Overview

Contract Amount: $17,285,573 ($17.3M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2023-05-25

End Date: 2025-08-11

Contract Duration: 809 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: HALVORSEN AIRCRAFT CARGO LOADER SUPPORT

Place of Performance

Location: WEST PLAINS, HOWELL County, MISSOURI, 65775

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: HALVORSEN AIRCRAFT CARGO LOADER SUPPORT Key points: 1. The contract is for support of aircraft cargo loaders, a niche but critical component for air operations. 2. DRS Sustainment Systems, Inc. is the incumbent provider, suggesting potential for continued reliance. 3. The fixed-price incentive contract type aims to balance cost control with performance incentives. 4. The award value is significant for specialized equipment support, warranting scrutiny of unit costs and duration.

Value Assessment

Rating: good

The contract value of $17.3M over approximately 2.7 years suggests a substantial investment. Benchmarking against similar specialized equipment support contracts would be necessary for a precise assessment, but the duration and scope appear reasonable for the stated purpose.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure fair market value.

Taxpayer Impact: The competitive award process is designed to ensure taxpayer funds are used efficiently for necessary equipment support.

Public Impact

Ensures continued operational readiness for Air Force cargo handling capabilities. Supports specialized maintenance and sustainment for critical aviation infrastructure. Potential for follow-on contracts if performance is satisfactory. Impacts the logistics and supply chain efficiency of air mobility operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Fixed Price Incentive contracts can lead to cost overruns if not managed carefully.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Contract aims to ensure operational readiness.
Fixed Price Incentive contract structure can incentivize efficiency.

Sector Analysis

This contract falls within the industrial machinery manufacturing and support sector, specifically related to aerospace ground support equipment. Spending benchmarks for this niche area are difficult to establish without more granular data, but it represents a critical investment in maintaining air mobility capabilities.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the specialized support inherently limits their involvement.

Oversight & Accountability

The contract is managed by the Department of the Air Force. Oversight will be crucial to ensure the contractor meets performance requirements and that the fixed-price incentive structure does not lead to excessive costs for the government.

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 due to FPI contract type.
Lack of transparency on specific performance metrics.
No small business participation noted.
Reliance on a single incumbent provider could limit future competition.
Specialized nature of equipment may lead to limited vendor pool.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to DRS SUSTAINMENT SYSTEMS, INC. HALVORSEN AIRCRAFT CARGO LOADER SUPPORT

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 $17.3 million.

What is the period of performance?

Start: 2023-05-25. End: 2025-08-11.

What specific support services are included in this contract, and how do they contribute to overall operational effectiveness?

The contract covers support for Halvorsen Aircraft Cargo Loaders. These services likely include maintenance, repair, parts, and technical support essential for the operation of these loaders. Their effectiveness is directly tied to the Air Force's ability to rapidly and efficiently load and unload cargo from aircraft, a critical function for deployment and logistics.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure value for money?

Specific KPIs are not detailed in the provided data. However, typical metrics for such contracts might include response time for support requests, equipment uptime, availability of spare parts, and adherence to maintenance schedules. The effectiveness of the Fixed Price Incentive (FPI) contract relies on clearly defined targets and penalties/bonuses tied to these KPIs.

How does the pricing structure of this Fixed Price Incentive contract compare to industry standards for similar specialized equipment support?

The Fixed Price Incentive (FPI) structure aims to share cost risks and rewards between the government and the contractor. Without specific cost breakdowns and profit margins, a direct comparison is challenging. However, FPI contracts are generally used when cost uncertainty is moderate, and they require careful negotiation of target costs, incentive fees, and ceiling prices to ensure fair value.

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: $17,285,573

Exercised Options: $17,285,573

Current Obligation: $17,285,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA851914D0007

IDV Type: IDC

Timeline