Textron Systems awarded $19.3M for ESB-5 Pre-Deployment Support, with a 5-year performance period

Contract Overview

Contract Amount: $19,343,512 ($19.3M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-12

End Date: 2028-02-28

Contract Duration: 1,995 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ESB-5 PRE-DEPLOYMENT SUPPORT

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to TEXTRON SYSTEMS CORPORATION for work described as: ESB-5 PRE-DEPLOYMENT SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of pre-deployment support services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. Performance period extends over five years, indicating a long-term need for these services. 4. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing support. 5. Services are categorized under Surveying and Mapping, suggesting specialized technical expertise is required. 6. Fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $19.3 million over nearly five years averages to approximately $3.86 million annually. This figure seems within a reasonable range for specialized pre-deployment support services, especially considering the potential complexity and technical requirements. Benchmarking against similar contracts for advanced system support would provide a more precise value assessment, but initial indicators suggest fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial sources might have been limited, the final award was made through a broad competitive process. The presence of two bidders suggests a moderate level of competition, which is generally beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The competitive nature of this award is positive for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario. It ensures that multiple companies had the opportunity to bid, fostering a more efficient use of public funds.

Public Impact

The Department of the Navy benefits from enhanced readiness and support for its ESB-5 systems. Specialized pre-deployment support services are delivered, ensuring systems are operational and ready for deployment. The primary geographic impact is likely within the operational areas of the Department of the Navy, both domestically and internationally. The contract supports a specialized workforce within Textron Systems Corporation, likely involving engineers, technicians, and logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if pre-deployment requirements are not clearly defined and managed.
Dependence on a single contractor for critical pre-deployment support could pose a risk if performance issues arise.
Long performance period necessitates ongoing monitoring to ensure continued value and adherence to contract terms.

Positive Signals

Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost overruns.
Full and open competition suggests a robust bidding process, likely leading to competitive pricing.
The contract is a delivery order under an IDIQ, indicating a pre-vetted and established contracting vehicle.

Sector Analysis

The defense sector, particularly within naval operations, relies heavily on specialized support services for complex systems like the ESB-5. This contract falls within the broader category of defense contracting, which encompasses a vast array of services from R&D to sustainment. Spending in this area is critical for maintaining technological superiority and operational readiness. Comparable spending benchmarks would typically be found within broader defense procurement data for similar system support contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Textron Systems Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price structure and the delivery order process, requiring Textron Systems to meet defined performance standards. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Systems Support Contracts
Defense Pre-Deployment Services
IDIQ Vehicle Task Orders
Surveying and Mapping Services (Defense)

Risk Flags

Long-term contract duration requires sustained oversight.
Dependence on a single contractor for critical support.
Potential for undefined scope creep in pre-deployment services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to TEXTRON SYSTEMS CORPORATION. ESB-5 PRE-DEPLOYMENT SUPPORT

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 $19.3 million.

What is the period of performance?

Start: 2022-09-12. End: 2028-02-28.

What is the historical spending pattern for Textron Systems Corporation with the Department of the Navy for similar pre-deployment support services?

Analyzing historical spending for Textron Systems Corporation with the Department of the Navy reveals a consistent engagement in providing specialized support services. While specific data for 'ESB-5 Pre-Deployment Support' prior to this award is not detailed here, Textron Systems has a track record of securing contracts related to defense systems, including areas like unmanned systems, training, and simulation. The value of this $19.3 million contract is substantial and aligns with the typical scale of support required for advanced naval platforms. A deeper dive into historical contract awards would likely show a pattern of multi-million dollar awards over several years, indicating a strong, ongoing relationship and a recognized capability in fulfilling complex defense requirements for the Navy.

How does the pricing of this contract compare to industry benchmarks for similar pre-deployment support services?

Directly comparing the pricing of this $19.3 million contract to industry benchmarks for 'ESB-5 Pre-Deployment Support' is challenging without specific details on the exact services rendered and the complexity involved. However, the contract's firm-fixed-price nature suggests that the government has negotiated a set price for the defined scope of work. The fact that it was awarded under full and open competition with two bidders implies that the pricing was competitive. Annualized costs of approximately $3.86 million for nearly five years of specialized support appear reasonable for advanced defense systems. Industry benchmarks for similar long-term, specialized technical support contracts in the defense sector often range significantly based on system criticality, required expertise, and duration. Without more granular data on labor rates, overhead, and profit margins, a definitive benchmark assessment is difficult, but the competitive award process provides some assurance of fair market value.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

Key performance indicators (KPIs) for this 'ESB-5 Pre-Deployment Support' contract would likely revolve around the timely and successful completion of pre-deployment tasks, system readiness rates, adherence to technical specifications, and effective logistical support. Risk mitigation strategies are inherent in the contract's structure. The firm-fixed-price (FFP) type contract shifts the cost overrun risk to the contractor, Textron Systems Corporation. The 'Full and Open Competition' award process itself is a risk mitigation strategy, aiming to secure the best value through competitive bidding. Furthermore, the five-year performance period, while long, allows for phased delivery and performance monitoring. The Department of the Navy would likely employ standard contract management practices, including regular progress reviews, quality assurance surveillance plans (QASPs), and clear communication channels to identify and address potential performance issues or risks proactively throughout the contract duration.

What is the anticipated impact of this contract on the operational readiness of the Department of the Navy's ESB-5 systems?

This contract is anticipated to have a significant positive impact on the operational readiness of the Department of the Navy's ESB-5 systems. Pre-deployment support is critical for ensuring that complex military equipment is fully functional, properly configured, and ready for deployment to operational theaters. This includes tasks such as system checks, maintenance, integration of necessary upgrades or modifications, and logistical preparations. By securing these services from Textron Systems Corporation, the Navy is investing in the reliability and effectiveness of its ESB-5 assets. Enhanced readiness translates directly into improved mission capability, reduced downtime, and a greater ability to respond to national security requirements. The five-year duration suggests a sustained commitment to maintaining the readiness of these systems over a considerable period.

Are there any specific technological advancements or innovations expected to be integrated or supported through this contract?

While the contract title 'ESB-5 Pre-Deployment Support' does not explicitly mention technological advancements or innovations, such contracts often serve as a vehicle for integrating updates or supporting evolving system capabilities. Pre-deployment phases can include the incorporation of new software versions, hardware upgrades, or modifications based on recent operational feedback or technological maturation. Textron Systems Corporation, as a defense contractor, is likely involved in supporting systems that undergo continuous improvement. Therefore, it is plausible that this contract could facilitate the integration of minor technological enhancements or ensure support for the latest iterations of the ESB-5 system. However, without specific details within the contract's statement of work, it is difficult to confirm the extent of innovation integration beyond standard support and maintenance protocols.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

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: $22,537,756

Exercised Options: $19,343,512

Current Obligation: $19,343,512

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