Textron Systems awarded $25.2M for ISR services by U.S. Special Operations Command

Contract Overview

Contract Amount: $25,214,553 ($25.2M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2018-09-25

End Date: 2021-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $23.0K/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 $25.2 million to TEXTRON SYSTEMS CORPORATION for work described as: ISR SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $25.2 million over three years indicates a significant investment in intelligence, surveillance, and reconnaissance capabilities. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. This award falls under engineering services, a broad category that requires careful monitoring for scope creep. 5. The duration of 1095 days (3 years) provides a stable period for service delivery. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: good

The contract value of approximately $25.2 million over three years for ISR services appears reasonable given the nature of specialized intelligence support. Benchmarking against similar ISR contracts is challenging without more specific service details, but the firm-fixed-price structure suggests a focus on cost control by the government. The award amount is within the expected range for complex engineering and technical services supporting critical national security missions.

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 bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The government's decision to use full and open competition suggests confidence in the market's ability to provide the required ISR services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value for its investment by considering a wide range of qualified contractors.

Public Impact

The primary beneficiaries are U.S. Special Operations Command (SOCOM) personnel who will receive enhanced intelligence, surveillance, and reconnaissance capabilities. The services delivered are critical for supporting special operations missions, potentially including real-time data analysis, sensor operation, and intelligence gathering. The geographic impact is likely global, supporting SOCOM's worldwide operational requirements. Workforce implications may include specialized technical personnel employed by Textron Systems Corporation and potentially subcontractors, contributing to the defense technology sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in engineering services contracts if requirements are not clearly defined and managed.
Reliance on a single contractor for critical ISR services could pose a risk if performance issues arise.
The firm-fixed-price nature requires careful contractor management to ensure quality and timely delivery.

Positive Signals

Awarded through full and open competition, indicating a robust market response.
Firm-fixed-price contract type aligns incentives for cost efficiency.
Long-term contract duration (3 years) provides stability for service provision and planning.

Sector Analysis

Intelligence, Surveillance, and Reconnaissance (ISR) services are a critical component of modern defense operations, encompassing a wide range of technologies and expertise. The market for ISR services is substantial, driven by evolving geopolitical landscapes and the increasing demand for real-time situational awareness. This contract fits within the broader defense engineering and technical services sector, which is characterized by high barriers to entry due to specialized knowledge and security requirements. Comparable spending benchmarks are difficult to establish without granular detail on the specific ISR capabilities provided, but significant government investment in this area is consistent across defense agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of ISR services and the prime contractor being Textron Systems Corporation, a large defense contractor, it is possible that small businesses could be involved as subcontractors. However, without explicit set-aside provisions or reporting on subcontracting goals, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Special Operations Command contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Special Operations Forces Support Contracts
Engineering and Technical Services
Department of Defense Information Technology Services

Risk Flags

Potential for scope creep
Contractor performance risk
Dependence on specialized technical expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 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 $25.2 million.

What is the period of performance?

Start: 2018-09-25. End: 2021-09-24.

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

Textron Systems Corporation has a significant history of providing defense and aerospace solutions, including ISR capabilities. They have been involved in developing and supporting various platforms and systems relevant to intelligence gathering, surveillance, and reconnaissance for military applications. Their experience often includes integration of sensors, data processing, and operational support. Examining their past performance on similar contracts, particularly with SOCOM or other branches of the DoD, would reveal their reliability, technical proficiency, and ability to meet demanding mission requirements. Publicly available contract databases and performance reviews, where accessible, can offer insights into their successful delivery of complex ISR solutions and their adherence to contract terms and quality standards.

How does the $25.2 million contract value compare to other ISR service contracts awarded by SOCOM or the DoD?

The $25.2 million contract value for ISR services awarded to Textron Systems Corporation over a three-year period is a substantial but not extraordinary amount within the context of large defense procurements. SOCOM and the DoD frequently award contracts in the tens to hundreds of millions of dollars for specialized ISR capabilities, including platform development, sensor integration, data analysis, and operational support. The specific value is influenced by the scope and complexity of the services required, the duration of the contract, and the competitive landscape. Without detailed specifications of the services rendered, a precise comparison is difficult, but this award aligns with the typical investment levels for critical intelligence support functions necessary for modern military operations.

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

The primary risks associated with this firm-fixed-price ISR services contract, while generally favorable for cost control, include potential impacts on service quality and contractor innovation. If Textron Systems Corporation faces unforeseen technical challenges or cost overruns, they might be incentivized to cut corners on quality to maintain profitability, potentially impacting the effectiveness of the ISR services. There's also a risk that the contractor may become less innovative over the contract's duration, focusing solely on meeting minimum requirements rather than seeking improvements, due to the fixed-price nature limiting upside for additional investment. Furthermore, if the government's requirements evolve significantly, managing changes under a fixed-price contract can become complex and potentially contentious, leading to disputes or contract modifications.

What is the expected effectiveness of the ISR services provided under this contract for SOCOM's missions?

The expected effectiveness of the ISR services provided under this contract is high, given that they are procured by U.S. Special Operations Command (SOCOM), an entity that relies heavily on precise and timely intelligence for its unique and often high-stakes missions. ISR services are fundamental to understanding adversary activities, identifying targets, and ensuring the safety and success of special operations. The contract's focus on engineering services suggests a need for sophisticated technical support, potentially involving advanced sensor technology, data fusion, real-time analysis, and secure communication systems. The firm-fixed-price structure, coupled with full and open competition, aims to ensure that SOCOM receives cost-effective, high-quality support tailored to its demanding operational requirements, thereby enhancing mission effectiveness.

How has Textron Systems Corporation's spending in the engineering services category evolved over the past five years?

Analyzing Textron Systems Corporation's spending trends in the engineering services category over the past five years requires access to detailed historical contract data. Generally, major defense contractors like Textron Systems often see fluctuations in contract awards based on defense budgets, specific program needs, and competitive bidding outcomes. If this $25.2 million award represents a significant portion of their engineering services portfolio, it could indicate a renewed or sustained focus on this area. However, without a broader dataset of their awards, it's difficult to ascertain a definitive trend. Factors such as the introduction of new technologies, shifts in military strategy, and the success of previous contracts would influence their continued investment and success in securing engineering services work.

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: $25,214,553

Exercised Options: $25,214,553

Current Obligation: $25,214,553

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