Textron Systems awarded $55.6M for ISR land-based OIR support, with 2 bids received

Contract Overview

Contract Amount: $55,614,077 ($55.6M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2018-01-04

End Date: 2020-11-28

Contract Duration: 1,059 days

Daily Burn Rate: $52.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ISR LAND-BASED OIR SUPPORT IGF::OT::IGF

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $55.6 million to TEXTRON SYSTEMS CORPORATION for work described as: ISR LAND-BASED OIR SUPPORT IGF::OT::IGF Key points: 1. Contract value of $55.6 million for intelligence, surveillance, and reconnaissance (ISR) support. 2. Competition involved two bidders, suggesting a moderately competitive environment. 3. Contract duration of 1059 days indicates a medium-term engagement. 4. Firm Fixed Price contract type aims to control costs for the government. 5. Awarded by the Department of the Navy, indicating a defense-related need. 6. The North American Industry Classification System (NAICS) code 541370 points to surveying and mapping services. 7. No small business set-aside was utilized for this contract.

Value Assessment

Rating: good

The contract value of $55.6 million for ISR land-based OIR support appears reasonable given the scope and duration. Benchmarking against similar contracts for specialized intelligence support is challenging without more detailed service descriptions. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bids received (2) indicates some level of market interest, but further analysis would be needed to determine if this represents optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Two bids were received, which suggests a moderate level of competition. 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 specific reasons for only two bids could relate to the specialized nature of the services required or the contractor pool.

Taxpayer Impact: With two bids, taxpayers benefit from some price competition, preventing a sole-source situation. However, the limited number of bidders may mean that taxpayers did not achieve the lowest possible price compared to a more crowded field.

Public Impact

The primary beneficiaries are likely military intelligence units requiring land-based intelligence, surveillance, and reconnaissance (ISR) capabilities. The services delivered are crucial for operational intelligence (OIR) support, aiding in decision-making and situational awareness. The geographic impact is likely focused on operational theaters where land-based ISR is deployed, potentially worldwide. Workforce implications include specialized personnel for operating and maintaining ISR systems, as well as analysts interpreting the data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than if more firms had participated.
The specialized nature of ISR support could create barriers to entry for smaller or less experienced firms.
Dependence on a single contractor for critical ISR functions could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded through full and open competition, ensuring a fair process.
Textron Systems Corporation is an established defense contractor with relevant experience.

Sector Analysis

The defense sector, particularly intelligence, surveillance, and reconnaissance (ISR), is a significant area of federal spending. This contract falls within the broader category of professional, scientific, and technical services. The market for ISR support is characterized by specialized technology and expertise, often involving a mix of large defense contractors and niche providers. Comparable spending benchmarks are difficult to establish without specific details on the technology and services provided, but the overall defense ISR budget runs into billions annually.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would likely depend on Textron Systems Corporation's own subcontracting decisions. The absence of a set-aside means that small businesses did not have a direct avenue to compete for the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to delivery. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Department of Defense Information Technology Support
Specialized Technical Services Contracts
Naval Operations Support Contracts

Risk Flags

Limited Competition
Potential for Cost Overruns (inherent in complex projects)
Reliance on Specialized Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.6 million to TEXTRON SYSTEMS CORPORATION. ISR LAND-BASED OIR SUPPORT 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 $55.6 million.

What is the period of performance?

Start: 2018-01-04. End: 2020-11-28.

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

Textron Systems Corporation has a significant history of providing defense and aerospace solutions, including unmanned systems, precision weapons, and electronic warfare capabilities, which are often integral to ISR operations. While specific details on past ISR land-based OIR support contracts awarded to Textron are not provided in this data snippet, their broader portfolio suggests relevant experience. A deeper dive into their contract history with the Department of Defense and other agencies would reveal the extent and success of their prior engagements in this specific domain. Analyzing past performance ratings and any contract disputes or modifications would offer further insight into their reliability and capability for delivering complex ISR support.

How does the $55.6 million value compare to other ISR land-based OIR support contracts?

Direct comparison of the $55.6 million contract value to other ISR land-based OIR support contracts is challenging without more granular data on the specific services, technologies, and geographic scope involved. ISR contracts can vary widely in cost based on factors such as the complexity of intelligence gathering, the duration of deployment, the type of platforms used (e.g., drones, sensors, ground stations), and the level of data analysis required. However, $55.6 million for a contract spanning over 1000 days suggests a substantial investment in specialized capabilities. To provide a more precise benchmark, one would need to analyze contracts with similar NAICS codes (541370) and service descriptions within the defense sector, looking at average values, contract durations, and the number of bidders.

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

The primary risks associated with this contract include potential performance shortfalls, where Textron Systems Corporation might fail to deliver the required ISR data or support effectively, impacting operational decision-making. Another risk is cost overruns, although mitigated by the Firm Fixed Price (FFP) structure, unforeseen technical challenges or scope creep could still lead to issues. Given the limited competition (two bidders), there's a risk of vendor lock-in or reduced leverage in future contract negotiations. Furthermore, reliance on specialized technology and personnel means risks related to obsolescence, security breaches, or the availability of skilled labor. Ensuring continuous operational readiness and adapting to evolving threats are also inherent risks in ISR support.

How effective is the firm fixed-price contract type in managing costs for this ISR support?

The Firm Fixed Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks are understood. For ISR land-based OIR support, FFP provides the Department of the Navy with cost certainty, as the contractor assumes the risk of cost overruns. This incentivizes Textron Systems Corporation to manage its resources efficiently and control expenses. However, if unforeseen technical complexities or changes in requirements arise, the contractor might be less willing to accommodate them without additional cost, potentially leading to contract modifications or disputes. The effectiveness also depends on the accuracy of the initial cost estimates and the government's ability to clearly define performance expectations.

What is the historical spending trend for ISR land-based OIR support by the Department of the Navy?

Analyzing the historical spending trend for ISR land-based OIR support by the Department of the Navy requires access to comprehensive historical contract data beyond this single award. This specific contract, awarded in 2018 and ending in 2020, represents a snapshot of spending during that period. To understand trends, one would need to examine spending patterns over several fiscal years, looking at the total value of awarded contracts for similar services, the number of contracts issued, and the average contract values. Factors influencing these trends include evolving geopolitical threats, technological advancements in ISR capabilities, and shifts in defense budget priorities. Without broader historical data, it's impossible to definitively characterize the spending trend.

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

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: $55,781,115

Exercised Options: $55,614,077

Current Obligation: $55,614,077

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001917D0096

IDV Type: IDC

Timeline