Textron Systems awarded $66.6M for ISR land-based deployment, with 2 bids received

Contract Overview

Contract Amount: $66,602,134 ($66.6M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2018-03-14

End Date: 2020-07-04

Contract Duration: 843 days

Daily Burn Rate: $79.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ISR LAND-BASED DEPLOYMENT SITE G AND H IGF::OT::IGF

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $66.6 million to TEXTRON SYSTEMS CORPORATION for work described as: ISR LAND-BASED DEPLOYMENT SITE G AND H IGF::OT::IGF Key points: 1. Contract value represents a significant investment in intelligence, surveillance, and reconnaissance capabilities. 2. The firm-fixed-price structure aims to control costs for the Department of the Navy. 3. Competition level suggests a moderate degree of market interest for this specialized service. 4. Contract duration of 843 days indicates a substantial, multi-year operational requirement. 5. The award falls within the surveying and mapping services NAICS code, highlighting the technical nature of the deployment. 6. Geographic focus on Maryland points to specific operational or training needs within that region.

Value Assessment

Rating: good

The contract's firm-fixed-price nature provides cost certainty for the government. Benchmarking against similar ISR deployment contracts is challenging due to the specialized nature of the services. However, the total award amount of $66.6 million over approximately two years suggests a significant but potentially reasonable investment for the capabilities delivered. Further analysis would require detailed cost breakdowns and comparison with industry standards for similar technological deployments.

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. With two bids received, the competition level was moderate. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The limited number of bidders could suggest a niche market or high barriers to entry for potential competitors.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a fair price, but there may have been opportunities for even greater savings with broader participation.

Public Impact

The Department of the Navy benefits from enhanced intelligence, surveillance, and reconnaissance capabilities. Services delivered likely involve the setup, deployment, and potentially operation of land-based ISR systems. The geographic impact is concentrated in Maryland, suggesting specific operational or testing requirements. Workforce implications may include specialized technical personnel for system deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in higher prices than a more robust bidding process.
The specialized nature of ISR technology may limit the pool of qualified contractors.
Contract duration and value could indicate a complex project with potential for scope creep if not managed tightly.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget predictability.
Awarded under full and open competition, ensuring a fair process.
The contractor, Textron Systems Corporation, has a track record in defense contracting, suggesting experience.

Sector Analysis

The defense sector, particularly within intelligence, surveillance, and reconnaissance (ISR), is a critical area of government spending. This contract fits within the broader market for defense technology and services, which is characterized by high R&D investment and specialized expertise. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of land-based ISR deployments, but the overall defense IT and services market is substantial, with billions allocated annually.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of ISR land-based deployment, it is likely that larger, more established defense contractors would be the primary participants. Subcontracting opportunities for small businesses may exist, but they would depend on the prime contractor's strategy and the specific technical requirements of the project.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to meet specifications within budget. Transparency is generally maintained through contract award databases, though specific operational details of ISR deployments are often classified.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Technology and Services
Surveying and Mapping Services
Department of Defense IT and Communications

Risk Flags

Moderate competition level
Potential for technical complexity and integration challenges
Risk of technology obsolescence in a rapidly evolving field

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.6 million to TEXTRON SYSTEMS CORPORATION. ISR LAND-BASED DEPLOYMENT SITE G AND H IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $66.6 million.

What is the period of performance?

Start: 2018-03-14. End: 2020-07-04.

What is Textron Systems Corporation's track record with similar ISR deployment contracts?

Textron Systems Corporation has a significant history of working with the Department of Defense on various defense systems, including those related to intelligence, surveillance, and reconnaissance. While specific details on prior land-based ISR deployment contracts of this exact nature may be limited in public records, the company is known for its expertise in areas such as unmanned systems, sensor integration, and command and control systems. Their broader experience in developing and delivering complex defense solutions suggests a capability to handle the technical and logistical demands of this contract. Publicly available contract databases often show numerous awards to Textron Systems across different defense agencies, indicating a consistent presence and performance in the sector.

How does the $66.6 million award compare to other ISR land-based deployment contracts?

Direct comparisons for 'ISR land-based deployment' contracts are challenging due to the specificity of the service and the often classified nature of ISR operations. However, the $66.6 million award over approximately two years falls within a range that is typical for significant defense technology and service contracts. Larger ISR programs, especially those involving advanced sensor platforms or extensive integration, can easily reach hundreds of millions or even billions of dollars. Smaller, more focused deployments or specific system upgrades might be in the tens of millions. This contract's value suggests a substantial, but not exceptionally large, undertaking within the broader ISR domain, likely focused on a specific operational need or technology set.

What are the primary risks associated with this contract for the Department of the Navy?

The primary risks for the Department of the Navy in this contract include potential cost overruns if the firm-fixed-price structure is not adequately managed, although this structure inherently shifts cost risk to the contractor. Technical risks are also present, as deploying and integrating specialized ISR systems can be complex, potentially leading to performance issues or delays. Contractor performance risk is another factor; while Textron Systems has experience, any contractor can face challenges. Furthermore, the evolving nature of ISR technology means that the deployed systems could become outdated relatively quickly, posing a risk of obsolescence. Finally, security risks associated with sensitive ISR data and equipment must be rigorously managed.

How effective is the firm-fixed-price contract type in ensuring value for money for this ISR deployment?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For this ISR land-based deployment, FFP incentivizes Textron Systems to control costs and manage resources efficiently to maximize profit. This shifts the financial risk of cost overruns to the contractor, which is beneficial for the Navy. However, the effectiveness hinges on the accuracy of the initial cost estimates and the clarity of the contract's specifications. If the scope is underestimated or unforeseen technical challenges arise, the contractor might be tempted to cut corners on quality or performance to maintain profitability, potentially impacting the long-term value. Robust government oversight is still crucial to ensure that the defined scope is met with the expected quality.

What are the historical spending patterns for ISR land-based deployment services by the Department of the Navy?

Historical spending patterns for 'ISR land-based deployment' services by the Department of the Navy are not easily isolated as a distinct category in public spending databases. ISR capabilities are often integrated into larger platform procurements (e.g., aircraft, ships, ground vehicles) or bundled within broader IT and C4ISR (Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance) service contracts. However, the Navy consistently allocates significant portions of its budget to ISR, reflecting its critical role in naval operations. Spending trends show a continuous investment in upgrading sensor technology, data processing, and secure communication networks to maintain information superiority. This specific contract likely represents a component of that ongoing investment in land-based ISR infrastructure or operational support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Surveying and Mapping (except Geophysical) 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: N0001916R0063

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc (UEI: 001338979)

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: $67,130,917

Exercised Options: $66,602,134

Current Obligation: $66,602,134

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001917D0096

IDV Type: IDC

Timeline