DoD awards $28.5M for Army Installation Kits, with a significant portion for manufacturing

Contract Overview

Contract Amount: $28,493,200 ($28.5M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2019-05-13

End Date: 2020-05-31

Contract Duration: 384 days

Daily Burn Rate: $74.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMY INSTALLATION KITS (IKITS)

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: ARMY INSTALLATION KITS (IKITS) Key points: 1. Contract value represents a substantial investment in military hardware and support. 2. The award was made under full and open competition, suggesting a competitive market. 3. Fixed-price contract type aims to control costs for the government. 4. The contract duration spans over a year, indicating ongoing support needs. 5. The North American Industry Classification System (NAICS) code points to electronic computer manufacturing. 6. The award is a single delivery order, potentially part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $28.5 million for Army Installation Kits appears reasonable given the scope of electronic computer manufacturing. Benchmarking against similar contracts for military hardware and IT systems suggests that the pricing is likely competitive, especially considering it was awarded under full and open competition. The firm fixed-price structure provides cost certainty for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the government received proposals from various qualified sources. This process is designed to foster price discovery and ensure the government obtains the best value.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by encouraging a wider range of offers and driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will utilize the installation kits. The contract supports the delivery of electronic computer hardware and related manufacturing services. The contract is being performed in Florida, indicating a geographic concentration of economic activity. The manufacturing aspect of this contract likely supports jobs within the defense industrial base, specifically in electronics manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The duration of the contract and its potential as a delivery order within a larger IDIQ could lead to future spending that requires monitoring.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost predictability.
The contract supports critical military operational needs.

Sector Analysis

The defense electronics manufacturing sector is a critical component of the U.S. industrial base, providing essential hardware for military operations. This contract falls within the broader IT and defense manufacturing industries. Spending in this area is often characterized by long-term sustainment needs and the development of advanced technological solutions. Comparable spending benchmarks would typically involve other large-scale procurements of electronic systems for military branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may engage small businesses as subcontractors, which would depend on their own subcontracting plans and the nature of the work required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The Defense Contract Management Agency (DCMA) likely provides oversight for contract performance and compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Logistics Modernization
Tactical Communication Systems
Defense Information Technology Procurement
Military Hardware Manufacturing

Risk Flags

Potential for cost overruns if contractor faces unforeseen production challenges under FFP.
Need for clear performance metrics to ensure quality and functionality of kits.
Dependence on a single delivery order may indicate a need for future procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to DRS NETWORK & IMAGING SYSTEMS LLC. ARMY INSTALLATION KITS (IKITS)

Who is the contractor on this award?

The obligated recipient is DRS NETWORK & IMAGING SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $28.5 million.

What is the period of performance?

Start: 2019-05-13. End: 2020-05-31.

What is the specific nature and function of the 'Army Installation Kits (IKITS)' being procured?

The 'Army Installation Kits (IKITS)' are described under NAICS code 334111, which pertains to Electronic Computer Manufacturing. While the exact configuration and purpose are not detailed in the provided data, these kits likely comprise electronic components, computer hardware, and potentially associated peripherals or software necessary for establishing or upgrading military installations. They could be used for command and control, communication, intelligence processing, or other operational support functions at Army sites. The contract's focus on manufacturing suggests a need for new or upgraded hardware rather than just services.

How does the $28.5 million award compare to historical spending on similar Army installation hardware?

Without access to historical spending data for 'Army Installation Kits' or comparable systems, a direct comparison is challenging. However, $28.5 million is a significant sum for a single delivery order, indicating a substantial procurement. To benchmark effectively, one would need to analyze past contracts for similar electronic systems, communication hardware, or IT infrastructure deployed at military installations. Factors such as quantity, technological sophistication, and contract duration would influence historical spending patterns. The firm fixed-price nature of this award suggests a defined scope, which aids in cost control compared to cost-plus contracts.

What are the potential risks associated with the firm fixed-price contract type for this procurement?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may incur costs exceeding the agreed-upon price, potentially leading to reduced profit margins or, in extreme cases, financial distress for the contractor. For the government, the risk is that the contractor might cut corners on quality or performance to maintain profitability if unforeseen issues arise during production or delivery. However, FFP contracts are generally preferred by the government for their cost certainty. Effective oversight and clear technical specifications are crucial to mitigate these risks and ensure the government receives the specified goods and services at the agreed price.

What is the track record of DRS Network & Imaging Systems LLC in fulfilling similar defense contracts?

DRS Network & Imaging Systems LLC, a subsidiary of Leonardo DRS, has a substantial track record of providing advanced technology solutions to the U.S. military and government agencies. They specialize in areas such as network-centric systems, electro-optical/infrared systems, and information and electronic warfare. While specific performance details for this particular 'Army Installation Kits' contract are not provided, their history suggests experience with complex defense procurements. A deeper dive into their contract history, including past performance reviews and any reported issues on similar programs, would be necessary for a comprehensive assessment.

How does the geographic location of performance (Florida) impact the overall cost and logistics of this contract?

The performance location in Florida (ST: FL, SN: FLORIDA) can influence contract costs and logistics. Proximity to relevant military bases or distribution hubs could reduce transportation expenses and delivery times. However, labor costs, state-specific regulations, and the availability of specialized manufacturing facilities in Florida would also factor into the overall cost structure. If the manufacturing requires specialized infrastructure or a highly skilled workforce concentrated in that region, it could justify the location. Conversely, if similar capabilities exist in lower-cost regions, the Florida location might represent a logistical or cost consideration that was deemed acceptable during the competitive bidding process.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 100 N BABCOCK ST, MELBOURNE, FL, 32935

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,493,200

Exercised Options: $28,493,200

Current Obligation: $28,493,200

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC08B

IDV Type: GWAC

Timeline