Textron Systems awarded $31.3M for ISR services, highlighting engineering expertise in defense

Contract Overview

Contract Amount: $31,301,686 ($31.3M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2018-09-18

End Date: 2021-08-14

Contract Duration: 1,061 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ISR SERVICES

Plain-Language Summary

Department of Defense obligated $31.3 million to TEXTRON SYSTEMS CORPORATION for work described as: ISR SERVICES Key points: 1. Contract value of $31.3M for ISR services indicates significant investment in intelligence, surveillance, and reconnaissance capabilities. 2. Full and open competition suggests a robust market for these specialized engineering services. 3. The contract duration of 1061 days points to a long-term need for sustained support. 4. Fixed-price contract type shifts performance risk to the contractor, potentially benefiting the government. 5. Awarded by U.S. Special Operations Command, this contract likely supports critical national security missions. 6. Engineering services (NAICS 541330) are a key component of defense technology and operational readiness.

Value Assessment

Rating: good

The contract value of $31.3 million for ISR services appears reasonable given the duration and the specialized nature of engineering support required by U.S. Special Operations Command. Benchmarking against similar ISR contracts is challenging without more specific service details, but the fixed-price structure suggests a focus on cost control. The award amount is within the expected range for complex defense support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the government receives the best value. The number of bidders is not specified, but the open competition suggests a healthy market for these services.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which is beneficial for taxpayers by ensuring funds are used efficiently.

Public Impact

Intelligence, Surveillance, and Reconnaissance (ISR) capabilities are enhanced, directly benefiting national security operations. U.S. Special Operations Command receives critical engineering support for its advanced technological requirements. The contract supports specialized engineering roles, potentially creating or sustaining high-skilled jobs within the defense sector. Geographic impact is likely global, given the nature of special operations and ISR missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical ISR engineering services could pose a risk if performance issues arise.
Ensuring continued innovation and technological advancement from the contractor over the contract's duration.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost management.
Award through full and open competition suggests a competitive market and potentially better value.
Long contract duration (1061 days) provides stability and allows for deep integration of services.

Sector Analysis

The defense sector, particularly within intelligence, surveillance, and reconnaissance (ISR), is characterized by high technological complexity and significant government investment. This contract for engineering services fits within a broader market for defense support, where companies provide specialized expertise to enhance military capabilities. Comparable spending benchmarks for ISR engineering services vary widely based on scope, but contracts in the tens of millions are common for sustained support.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While Textron Systems Corporation is a large business, the contract terms do not preclude subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which places performance risk on the contractor. Transparency is facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Engineering Services
Special Operations Forces Support
Advanced Technology Development

Risk Flags

Contract awarded to a large business, potentially limiting small business subcontracting opportunities.
Long contract duration requires careful monitoring for sustained performance and relevance.
Specific performance metrics and quality assurance details are not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to TEXTRON SYSTEMS CORPORATION. ISR SERVICES

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

Start: 2018-09-18. End: 2021-08-14.

What is Textron Systems Corporation's track record with similar ISR services contracts for the Department of Defense?

Textron Systems Corporation has a significant history of providing defense-related services and products, including those related to ISR. Their experience often encompasses advanced systems development, integration, and support. For ISR services specifically, their track record would likely involve providing platforms, sensors, data processing, and analytical support. A detailed review of their contract history with DoD agencies, particularly SOCOM, would reveal the scope and success of past ISR-related awards, including performance ratings and any past performance issues. This specific contract's value and duration suggest a level of trust and proven capability in delivering complex ISR engineering solutions.

How does the $31.3 million award compare to other ISR engineering service contracts awarded by U.S. Special Operations Command?

The $31.3 million award for ISR services over approximately three years (1061 days) is a substantial but not extraordinary figure for specialized defense engineering support. U.S. Special Operations Command (SOCOM) often procures high-value, complex services to maintain technological superiority. Comparing this to other SOCOM ISR contracts would require analyzing awards with similar scope (engineering services) and duration. Contracts for ISR platform development, advanced sensor integration, or large-scale data analytics could range from tens to hundreds of millions of dollars. This particular award appears to be for a significant, but likely focused, engineering support effort rather than a broad platform acquisition.

What are the primary risks associated with this firm-fixed-price contract for ISR engineering services?

The primary risks associated with a firm-fixed-price (FFP) contract for ISR engineering services, while generally favorable to the government regarding cost certainty, include potential contractor underperformance or quality issues if the price is too low to sustain adequate effort. Textron Systems Corporation, as the contractor, bears the risk of cost overruns. However, if the FFP price is not adequately set, the contractor might cut corners on quality or scope, impacting the effectiveness of the ISR services. Another risk is the potential for scope creep if requirements evolve and are not managed through formal contract modifications, which could lead to disputes or reduced value. Ensuring robust technical oversight and clear performance metrics is crucial to mitigate these risks.

How effective are ISR services typically in supporting special operations missions, and how does this contract contribute?

ISR services are fundamental to the success of special operations missions, providing critical intelligence, situational awareness, and targeting data. They enable special operators to understand the operational environment, identify threats, plan precise actions, and assess mission outcomes. This contract, by providing specialized engineering support for ISR, directly contributes to the development, maintenance, and enhancement of these vital capabilities. It ensures that the technology and systems underpinning ISR operations are robust, reliable, and advanced, thereby increasing the effectiveness, safety, and success rates of special operations missions.

What has been the historical spending trend for ISR services by the Department of Defense over the last five years?

Historical spending on ISR services by the Department of Defense (DoD) has generally been robust and increasing over the last five years, driven by evolving global threats and the need for advanced intelligence gathering. While specific figures fluctuate annually based on budget allocations and strategic priorities, the overall trend indicates a sustained and significant investment in ISR capabilities across all branches. This includes spending on platforms, sensors, data processing, analytics, and associated engineering and support services. Factors such as technological advancements in AI and machine learning for data analysis, and the proliferation of peer adversaries, continue to drive demand and funding for sophisticated ISR solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: H9222215R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 124 INDUSTRY LN, HUNT VALLEY, MD, 21030

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: $31,301,686

Exercised Options: $31,301,686

Current Obligation: $31,301,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222217D0019

IDV Type: IDC

Timeline