DoD's $31.7M Tunner Loader Support contract awarded to DRS Sustainment Systems, Inc. for 2 years

Contract Overview

Contract Amount: $31,674,718 ($31.7M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2025-06-30

End Date: 2027-06-29

Contract Duration: 729 days

Daily Burn Rate: $43.5K/day

Competition Type: NOT COMPETED

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 $31.7 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: TUNNER LOADER SUPPORT Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Long-term contract duration of 729 days suggests a need for sustained support. 3. The contract type, Fixed Price Incentive, aims to balance cost control with performance. 4. Awarded by the Department of the Air Force, indicating a specific military need. 5. The industrial machinery manufacturing sector is critical for maintaining heavy equipment. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract's value of $31.7 million over two years for Tunner Loader support requires careful benchmarking. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The absence of competition further complicates a thorough price assessment, as there is no market-driven comparison to evaluate if the negotiated price is reasonable. The fixed-price incentive structure suggests an attempt to manage costs, but the ultimate expenditure will depend on performance outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a fully competed scenario.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding. Without multiple offers, the government cannot be assured it received the best possible price for the required support services.

Public Impact

The primary beneficiaries are the Department of the Air Force units requiring the operational readiness of Tunner loaders. Services delivered include essential support and maintenance for specialized ground support equipment. The geographic impact is likely concentrated at Air Force bases where these loaders are deployed. Workforce implications may include the need for specialized technicians to maintain and repair the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the sole-source justification process can obscure the true necessity.
Contract duration may lock in costs without opportunities for re-evaluation of market alternatives.
Absence of small business participation may limit broader economic impact and innovation.

Positive Signals

Fixed Price Incentive contract type aims to incentivize contractor performance and cost control.
Award to an established entity (DRS Sustainment Systems, Inc.) suggests a known capability.
Specific focus on Tunner loader support indicates a critical operational requirement being met.
Long-term contract provides stability for essential equipment maintenance and readiness.

Sector Analysis

The contract falls within the Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing sector, a niche but vital part of the broader industrial equipment market. This sector supports logistics and operations across various industries, including defense. Spending in this area is often driven by the need for specialized, heavy-duty equipment maintenance and sustainment. Comparable spending benchmarks would typically involve other government contracts for similar heavy machinery support or original equipment manufacturer (OEM) service agreements.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are limited. The absence of a set-aside or explicit subcontracting goals may reduce the direct economic benefit to the small business ecosystem for this particular award, although the prime contractor may engage small businesses independently.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded within the Fixed Price Incentive contract type, which links contractor profit to performance against cost and schedule targets. Transparency is limited due to the sole-source nature of the award; however, contract award details are typically made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Ground Support Equipment Maintenance
Air Force Logistics Command Contracts
Heavy Equipment Sustainment
Defense Industrial Base Support

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.7 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $31.7 million.

What is the period of performance?

Start: 2025-06-30. End: 2027-06-29.

What is the track record of DRS Sustainment Systems, Inc. with similar government contracts, particularly for ground support equipment?

DRS Sustainment Systems, Inc. has a history of performing contracts for the Department of Defense, often involving sustainment and support for various military equipment. Their experience typically includes providing maintenance, repair, and overhaul (MRO) services for complex systems. For ground support equipment like the Tunner loader, their track record would likely involve similar contracts for other types of vehicles or specialized machinery used in logistics and operational support. A detailed review of their past performance ratings, any past performance issues, and the scale of previous similar contracts would be necessary to fully assess their capability and reliability for this specific award. Information on contract awards and performance can often be found in federal procurement databases.

How does the pricing of this contract compare to similar Tunner loader support contracts awarded previously or to other branches of the military?

Direct comparison of pricing for this $31.7 million contract is challenging due to its sole-source nature and the limited data provided. Typically, a competitive bidding process allows for price discovery and benchmarking against multiple offers. Without access to historical data for identical Tunner loader support contracts or contracts for similar equipment within the Department of Defense or other federal agencies, it's difficult to establish a precise benchmark. The Fixed Price Incentive (FPI) contract type means the final price is contingent on performance, making a static comparison less straightforward. A thorough analysis would require access to detailed cost proposals, negotiation records, and data from comparable sole-source or competitively awarded contracts for specialized ground support equipment sustainment.

What are the specific risks associated with a sole-source award for critical equipment support, and how are they mitigated?

The primary risk of a sole-source award for critical equipment support is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible value for its expenditure. Another risk is vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting flexibility and future negotiation power. Mitigation strategies often include rigorous justification for the sole-source determination, detailed cost and price analyses by the contracting agency to ensure reasonableness, and strong contract management to oversee performance and adherence to terms. The FPI contract structure itself aims to mitigate cost risks by incentivizing the contractor to stay within or below target costs.

What is the expected impact of this contract on the operational readiness of the Air Force's Tunner loader fleet?

This contract is expected to significantly enhance the operational readiness of the Air Force's Tunner loader fleet by ensuring timely and effective maintenance, repair, and sustainment services. Tunner loaders are specialized pieces of ground support equipment crucial for various logistical operations, such as aircraft loading and cargo handling. By awarding a multi-year contract to DRS Sustainment Systems, Inc., the Air Force aims to secure the necessary technical expertise and parts availability to keep these essential assets in optimal working condition. This sustained support is vital for maintaining mission capability, reducing downtime, and ensuring that Air Force personnel have reliable equipment to perform their duties effectively.

How does the $31.7 million contract value align with historical spending patterns for Tunner loader support or similar ground support equipment within the Department of Defense?

Assessing how the $31.7 million contract value aligns with historical spending requires access to detailed historical procurement data for Tunner loaders and comparable ground support equipment (GSE) within the Department of Defense. Without this specific historical context, it's difficult to determine if this figure represents an increase, decrease, or stable level of investment. Factors influencing historical spending include the size of the fleet, the age of the equipment, technological upgrades, and changes in maintenance strategies. If historical spending was significantly lower, this contract might indicate an increased need for support or a shift towards more comprehensive sustainment. Conversely, if historical spending was higher, it could suggest cost-saving measures or a reduction in the fleet size.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing

Product/Service Code: MATERIALS HANDLING EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $31,674,718

Exercised Options: $31,674,718

Current Obligation: $31,674,718

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $1,424,275

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA853425D0003

IDV Type: IDC

Timeline