DoD's $1.14B Contract for Affordable Weapons Systems Awarded to International Systems, LLC

Contract Overview

Contract Amount: $11,381,352 ($11.4M)

Contractor: International Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-25

End Date: 2009-09-29

Contract Duration: 735 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AFFORDABLE WEAPONS SYSTEM(S)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92131

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to INTERNATIONAL SYSTEMS, LLC for work described as: AFFORDABLE WEAPONS SYSTEM(S) Key points: 1. The contract value of $1.14 billion represents a significant investment in research and development. 2. Awarded under full and open competition, this suggests a competitive bidding process. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a focus on innovation. 4. The contract duration of 735 days (approx. 2 years) allows for substantial project development.

Value Assessment

Rating: questionable

The contract value of $1.14 billion is substantial. Without specific unit cost data or comparable contract benchmarks for similar R&D projects, assessing the pricing's value is difficult. The 'CA' status suggests it was awarded, but the lack of detailed cost breakdown makes evaluation challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing. However, the specific details of the bidding and selection process are not provided.

Taxpayer Impact: The significant investment of $1.14 billion means taxpayer funds are being allocated to R&D. The ultimate taxpayer impact depends on the success and cost-effectiveness of the developed weapons systems.

Public Impact

Development of new weapons systems can impact national security and defense capabilities. Investment in R&D can lead to technological advancements with potential civilian applications. The large contract value signifies a major allocation of federal resources. The project's success could influence future defense procurement strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for a $1.14B contract.
Limited information on specific deliverables and performance metrics.
Potential for cost overruns in long-term R&D projects.
Unclear long-term return on investment for taxpayer funds.

Positive Signals

Awarded under full and open competition.
Focus on developing 'Affordable Weapons System(s)'.
Contract awarded to a single entity, potentially allowing for focused development.
Significant investment in critical R&D.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Federal spending in this sector is crucial for technological advancement and national security. Benchmarks for R&D contracts vary widely based on scope and complexity.

Small Business Impact

The data does not indicate any specific set-asides or participation requirements for small businesses in this contract. Therefore, the direct impact on small businesses is not evident from the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, a component of the Department of Defense. Accountability would involve monitoring project milestones, budget adherence, and final system performance against contract requirements.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Large contract value with limited cost transparency.
R&D projects inherently carry high risk of technical challenges and delays.
Potential for cost escalation over the contract duration.
Lack of specific small business participation noted.
Definition of 'affordability' is subjective and requires clear metrics.
Long-term return on investment is uncertain for R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to INTERNATIONAL SYSTEMS, LLC. AFFORDABLE WEAPONS SYSTEM(S)

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2007-09-25. End: 2009-09-29.

What specific metrics define 'affordable' in the context of these weapons systems, and how were these metrics evaluated during the bidding process?

The definition of 'affordable' is crucial for this contract. It likely relates to the total lifecycle cost, including acquisition, operation, and maintenance, compared to existing or alternative systems. Evaluation during bidding would involve assessing the contractor's proposed cost models, projected performance, and adherence to affordability targets set by the DoD. Without specific documentation, the exact metrics and evaluation criteria remain unclear.

Given the $1.14 billion value and R&D nature, what are the primary risks associated with project delays or technological obsolescence?

Primary risks include significant budget overruns if development timelines extend beyond the 735-day period or if unforeseen technical challenges arise. Technological obsolescence is also a concern, as advancements in the field could render the developed systems outdated before or shortly after deployment. Mitigation strategies would involve robust project management, phased development with clear milestones, and continuous market and technology scanning.

How will the effectiveness of the 'Affordable Weapons System(s)' be measured post-award to ensure value for taxpayer investment?

Effectiveness will be measured through rigorous testing and evaluation (T&E) phases, both developmental and operational. Key performance parameters (KPPs) and other contractually defined metrics will be assessed to determine if the systems meet their intended capabilities and operational requirements. Post-deployment feedback and performance monitoring will also contribute to assessing long-term effectiveness and value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: N0001907R0095

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 9925 CARROLL CANYON RD, SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,381,352

Exercised Options: $11,381,352

Current Obligation: $11,381,352

Timeline