Dod Awards $3.76M for Tunner Loader Support to DRS Sustainment Systems, Inc
Contract Overview
Contract Amount: $3,756,914 ($3.8M)
Contractor: DRS Sustainment Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2024-02-02
End Date: 2024-10-31
Contract Duration: 272 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: TUNNER LOADER SUPPORT
Place of Performance
Location: BRIDGETON, SAINT LOUIS County, MISSOURI, 63044
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $3.8 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: TUNNER LOADER SUPPORT Key points: 1. Spending on TUNNER LOADER SUPPORT totals $3.76M. 2. DRS SUSTAINMENT SYSTEMS, INC. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The contract type is Fixed Price Incentive. 5. This contract falls under the Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $3.76M for TUNNER LOADER SUPPORT appears reasonable given the duration and nature of the services. Benchmarking against similar support contracts for specialized equipment would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary equipment support.
Public Impact
Ensures operational readiness of critical TUNNER loaders. Supports Department of Defense logistics and supply chain functions. Provides specialized maintenance and sustainment services. Impacts personnel relying on these loaders for mission success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed Price Incentive contract type can lead to cost overruns if not managed carefully.
- Limited information on specific performance metrics and potential penalties.
- Dependence on a single contractor for critical support.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration and delivery order structure.
- Focus on essential equipment sustainment.
Sector Analysis
This contract falls within the Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing sector, which supports the production and maintenance of heavy equipment essential for logistics and operations. Spending benchmarks for this sector vary widely based on equipment type and service scope.
Small Business Impact
There is no indication that small businesses were involved in this specific award, as the contractor is DRS SUSTAINMENT SYSTEMS, INC. Future solicitations could explore opportunities for small business participation in subcontracting roles.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, indicating established oversight mechanisms. However, the effectiveness of this oversight depends on the rigor of performance monitoring and compliance checks throughout the contract period.
Related Government Programs
- Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to FPI contract type.
- Reliance on a single contractor for critical sustainment.
- Lack of explicit small business participation.
- Need for detailed performance monitoring.
Tags
industrial-truck-tractor-trailer-and-sta, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.8 million to DRS SUSTAINMENT SYSTEMS, INC. TUNNER 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $3.8 million.
What is the period of performance?
Start: 2024-02-02. End: 2024-10-31.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective support for the TUNNER loaders?
Key performance indicators would likely include metrics such as response time for maintenance requests, equipment uptime, availability of spare parts, and successful completion of scheduled maintenance. These would be measured through contractor reporting, government inspections, and operational readiness assessments. The effectiveness of the support hinges on the government's ability to track these KPIs and enforce contract terms.
What is the potential risk associated with the Fixed Price Incentive (FPI) contract type, and what mitigation strategies are in place?
The FPI contract type carries a risk of cost overruns if the contractor's costs exceed projections, as the government shares in the savings or overruns. Mitigation strategies include establishing realistic target costs, defining clear incentive goals tied to performance and cost, and robust government oversight to monitor contractor expenditures and performance against the baseline.
How does this contract contribute to the overall operational readiness and mission effectiveness of the Department of Defense units utilizing TUNNER loaders?
This contract directly contributes by ensuring that critical TUNNER loaders are maintained, repaired, and operational. Reliable equipment is fundamental to efficient logistics, deployment, and mission execution. By securing specialized support, the DoD minimizes downtime and ensures these essential assets are available when and where needed, thereby enhancing overall 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: $3,846,504
Exercised Options: $3,846,504
Current Obligation: $3,756,914
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: 2024-02-02
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2026-01-12
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