DoD's $23.6M contract for surveying services awarded to Textron Systems Corporation

Contract Overview

Contract Amount: $23,653,466 ($23.7M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2024-12-31

Contract Duration: 1,279 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OIR LOT 3 SITE 7

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to TEXTRON SYSTEMS CORPORATION for work described as: OIR LOT 3 SITE 7 Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and fixed-price terms. 4. Performance context is within surveying and mapping services, a standard government requirement. 5. Sector positioning is within defense services, specifically for the Department of the Navy. 6. The contract's value is modest within the broader defense spending landscape.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty. While a direct per-unit cost comparison is not available without more granular data, the total award of $23.6 million over approximately 3.5 years suggests a reasonable annual spend for surveying and mapping services. Benchmarking against similar large-scale surveying contracts would be necessary for a more precise value assessment, but the competitive award process lends confidence to the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a degree of competition, which typically helps in achieving fair market prices. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

The Department of the Navy benefits from essential surveying and mapping services for its operations. This contract supports infrastructure planning, land management, and potentially construction projects. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include employment opportunities for surveying and mapping professionals at Textron Systems Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 3 years) could introduce risks related to changing technology or requirements.
Firm-fixed-price contracts can shift cost overrun risks to the contractor, but may also lead to higher initial bids to account for this.
Limited competition (2 bidders) might not represent the full market potential, potentially impacting price optimization.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor is Textron Systems Corporation, a known entity in defense contracting, suggesting established capabilities.

Sector Analysis

The surveying and mapping services sector is a critical component of the broader professional, scientific, and technical services industry. This contract falls within the government's need for geospatial data and analysis, essential for infrastructure, defense, and environmental management. Comparable spending benchmarks in this sector vary widely based on scope, but large-scale government contracts for surveying can range from millions to tens of millions of dollars annually.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large corporation like Textron Systems Corporation suggests that small businesses were either not primary bidders or did not meet the requirements for this specific large-scale contract. This limits direct opportunities for small businesses within this particular award.

Oversight & Accountability

The contract is subject to standard government oversight mechanisms, including contract administration by the Department of the Navy. The firm-fixed-price nature simplifies some aspects of financial oversight. Transparency is facilitated by the public award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Geospatial Intelligence
Naval Facilities Engineering Command Contracts
Surveying and Mapping Services
Professional, Scientific, and Technical Services

Risk Flags

Long contract duration
Potential for scope creep
Limited number of bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to TEXTRON SYSTEMS CORPORATION. OIR LOT 3 SITE 7

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 $23.7 million.

What is the period of performance?

Start: 2021-07-01. End: 2024-12-31.

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

Textron Systems Corporation, while a significant defense contractor, is more widely recognized for its work in areas like unmanned systems, armored vehicles, and precision weapons. Information on their specific track record in large-scale surveying and mapping services contracts is less prominent in public databases. However, their status as a major defense prime contractor suggests they possess the organizational capacity and management expertise to execute complex government contracts. Further investigation into their past performance ratings and specific project history within the surveying domain would be beneficial for a comprehensive assessment.

How does the $23.6 million award compare to other surveying contracts awarded by the Department of the Navy?

The $23.6 million award for OIR LOT 3 SITE 7 is a substantial contract for surveying and mapping services. The Department of the Navy awards numerous contracts across various categories, and surveying services are a recurring need. Without a detailed analysis of the Navy's historical spending on surveying contracts of similar scope and duration, a direct comparison is challenging. However, contracts of this magnitude typically cover significant geographic areas or complex data acquisition requirements. It is within the expected range for major surveying projects supporting naval infrastructure or operations.

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

The primary risks associated with this firm-fixed-price contract, while generally favorable to the government for cost control, include potential for contractor underperformance if the fixed price is too low to cover actual costs, leading to quality issues or delays. Conversely, if the price is set too high, taxpayers may overpay. The long duration (over 3 years) also introduces risks related to scope creep, changes in government requirements, or technological obsolescence, which may necessitate contract modifications. The contractor bears the risk of cost overruns, which they may mitigate by building contingencies into their bid, potentially increasing the overall cost.

How effective is the 'full and open competition' in ensuring value for money for this specific contract?

Full and open competition is generally considered the most effective method for ensuring value for money as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. In this case, with two bidders, the competition was present, which is a positive sign. However, the true effectiveness hinges on the number and capability of the bidders, the clarity of the solicitation requirements, and the evaluation criteria used. If the two bidders represented the majority of capable firms, or if the solicitation was highly restrictive, the value achieved might be less than optimal. A deeper dive into the bid evaluation process would clarify the extent of value achieved.

What is the historical spending pattern for surveying and mapping services by the Department of the Navy?

The Department of the Navy consistently spends significant amounts on surveying and mapping services to support its vast infrastructure, operational planning, and asset management needs. Historical spending patterns reveal a continuous requirement for these services across various commands and geographic locations. While specific annual totals fluctuate based on major projects, modernization efforts, and infrastructure investments, the Navy's commitment to geospatial data acquisition and analysis remains a steady component of its budget. This contract represents a portion of that ongoing investment, aligning with historical trends of procuring such specialized services.

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

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: $23,850,824

Exercised Options: $23,653,466

Current Obligation: $23,653,466

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,655,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001921G0008

IDV Type: BOA

Timeline