Textron Systems awarded $33.4M for ISR support, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $33,374,435 ($33.4M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-12-24

End Date: 2025-08-11

Contract Duration: 1,326 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ISR SUPPORT FOR OIR LOT 1, SITE 1

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $33.4 million to TEXTRON SYSTEMS CORPORATION for work described as: ISR SUPPORT FOR OIR LOT 1, SITE 1 Key points: 1. The contract value of $33.4M appears reasonable given the scope of ISR support services. 2. Full and open competition suggests a healthy market for these specialized services. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of over three years provides stability for service delivery. 5. The award is for a specific site, indicating targeted operational support. 6. The small business set-aside flag is false, suggesting larger prime contractors are involved.

Value Assessment

Rating: good

The contract value of approximately $33.4 million for ISR support over its period of performance is within a reasonable range for specialized intelligence, surveillance, and reconnaissance services. Benchmarking against similar contracts for ISR support, particularly those involving site-specific operations, suggests this award is competitive. The firm fixed-price structure further enhances value by transferring cost risk to the contractor, incentivizing efficiency.

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 suggests a moderately competitive environment for this specific requirement. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite only two bidders, provides a baseline for fair pricing. Taxpayers benefit from the assurance that the contractor was selected through a process designed to solicit multiple offers, even if the pool was limited.

Public Impact

The primary beneficiaries are likely military units requiring intelligence, surveillance, and reconnaissance support for overseas contingency operations. The services delivered are crucial for situational awareness and operational planning in complex environments. The geographic impact is focused on the specific site mentioned in the contract, supporting localized mission objectives. Workforce implications include the potential for skilled analysts and technical personnel to be employed by Textron Systems Corporation or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bidders could potentially lead to higher prices than a more robustly competed contract.
The specific nature of ISR support may limit the pool of qualified contractors, impacting competition.
The contract duration, while providing stability, also ties up significant funding for an extended period.

Positive Signals

The firm fixed-price contract type is a positive signal, aligning contractor incentives with government cost objectives.
Awarding under full and open competition demonstrates a commitment to leveraging the broadest possible market.
The contractor, Textron Systems Corporation, has a significant presence in defense contracting, suggesting experience and capability.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting intelligence, surveillance, and reconnaissance (ISR) capabilities. The market for ISR services is substantial, driven by ongoing global security needs. Textron Systems Corporation is a known entity in this space, often providing advanced technology and support solutions. Comparable spending benchmarks for ISR support contracts can vary widely based on scope, duration, and technology involved, but this award appears aligned with typical values for specialized support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract was awarded to a large business, Textron Systems Corporation. While there's no direct information on subcontracting plans, large defense contracts often include provisions for small business participation. The absence of a small business set-aside means that opportunities for small businesses would likely be through subcontracting channels, rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, the awarding agency. As a firm fixed-price contract, oversight would focus on performance delivery, adherence to scope, and quality of services rendered. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Services
Department of Defense Contract Awards
Navy Contracting
Specialized Technical Support Services

Risk Flags

Limited Competition
Potential for Scope Creep
Personnel Availability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.4 million to TEXTRON SYSTEMS CORPORATION. ISR SUPPORT FOR OIR LOT 1, SITE 1

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 $33.4 million.

What is the period of performance?

Start: 2021-12-24. End: 2025-08-11.

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

Textron Systems Corporation has a substantial track record in providing defense and aerospace solutions, including significant involvement in ISR capabilities. They are known for developing and integrating various platforms and systems used for intelligence gathering and surveillance. While specific details on past ISR support contracts of identical scope and value are not provided here, their broader portfolio suggests a capacity to handle complex ISR requirements. Past performance evaluations, typically submitted as part of the bidding process, would offer more granular insights into their success with previous, similar engagements. Government contract databases often contain award histories that can be reviewed for patterns in performance and client satisfaction.

How does the $33.4 million value compare to other ISR support contracts awarded by the Department of Defense?

The $33.4 million value for this ISR support contract is moderate within the broader context of Department of Defense spending on intelligence, surveillance, and reconnaissance. Larger, more complex ISR programs involving advanced technology development, global sensor networks, or extensive platform integration can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, site-specific support tasks or shorter-duration analytical services might fall into the single-digit millions. This award appears to be for a defined scope of support at a specific location over a multi-year period, making its value reasonable when benchmarked against similar, targeted ISR service contracts rather than large-scale system procurements.

What are the primary risks associated with this type of ISR support contract?

Key risks for this ISR support contract include potential scope creep if requirements are not clearly defined and managed, leading to cost increases or schedule delays, although the firm fixed-price nature mitigates direct cost overrun for the government. Another risk is the availability of qualified personnel, as specialized ISR skills can be in high demand. Technical obsolescence is a consideration if the support relies on rapidly aging technology. Furthermore, geopolitical shifts or changes in operational tempo could alter the need for the specific ISR support, impacting the contract's long-term relevance. Finally, reliance on a single site could pose a risk if that location becomes inaccessible or its strategic importance diminishes.

How effective is full and open competition in ensuring value for money when only two bids are received?

Full and open competition is designed to maximize value for money by encouraging a wide range of potential bidders. However, when only two bids are received, its effectiveness in ensuring the best possible value is diminished compared to scenarios with numerous competitors. With only two bidders, the government has less leverage to negotiate favorable pricing, as the risk of a bid protest or losing the contract entirely is higher if the process is perceived as overly aggressive. While two bids still provide a competitive baseline and prevent a sole-source situation, the price discovery mechanism is less robust. The government may not achieve the lowest possible price achievable in a more crowded marketplace. Therefore, while the process itself is sound, the outcome's value-for-money potential is constrained by the limited number of participants.

What are the historical spending patterns for ISR support services within the Department of the Navy?

Historical spending patterns for ISR support services within the Department of the Navy show a consistent and significant investment driven by evolving mission requirements and technological advancements. The Navy procures a wide array of ISR-related services, ranging from platform maintenance and sensor operations to data analysis and intelligence dissemination. Spending fluctuates based on global operational needs, defense budget allocations, and the introduction of new ISR technologies. Over the past decade, there has been a trend towards more integrated ISR solutions, encompassing manned and unmanned platforms, advanced analytics, and cyber-enabled intelligence gathering. Contracts like the one awarded to Textron Systems Corporation represent a portion of this broader spending, focusing on specific operational support needs rather than large-scale system acquisition.

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: $33,374,435

Exercised Options: $33,374,435

Current Obligation: $33,374,435

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,977,480

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