Textron Systems awarded $33.7M for LCS pre-deployment, deployment, and post-deployment support

Contract Overview

Contract Amount: $33,708,261 ($33.7M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2023-06-16

End Date: 2029-04-30

Contract Duration: 2,145 days

Daily Burn Rate: $15.7K/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: THREE LCS PRE-DEPLOYMENT, DEPLOYMENT, AND POST-DEPLOYMENT SUPPORT WITH FIVE OPTION PERIODS.

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $33.7 million to TEXTRON SYSTEMS CORPORATION for work described as: THREE LCS PRE-DEPLOYMENT, DEPLOYMENT, AND POST-DEPLOYMENT SUPPORT WITH FIVE OPTION PERIODS. Key points: 1. Contract provides comprehensive support for Littoral Combat Ships (LCS) across multiple phases. 2. The contract structure includes a base period and five option periods, allowing for flexibility. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. The award was made under full and open competition, indicating a competitive bidding process. 5. The duration of the contract, over 2000 days, suggests a long-term need for these services. 6. The specific NAICS code (541370) points to specialized surveying and mapping services.

Value Assessment

Rating: good

The contract value of $33.7 million over approximately six years appears reasonable for specialized naval support services. Benchmarking against similar multi-year support contracts for complex naval platforms is necessary for a definitive value assessment. The firm fixed-price structure is generally favorable for cost control, assuming the scope of work is well-defined.

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 multiple potential bidders were considered. The presence of two bidders suggests a moderate level of competition for this specialized service. A higher number of bidders would typically lead to more aggressive pricing and potentially better value.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Naval operations and readiness are enhanced through the provision of critical LCS support. The services delivered ensure the effective functioning and maintenance of Littoral Combat Ships. The primary beneficiaries are the U.S. Navy and its operational capabilities. Geographic impact is likely concentrated around naval bases and operational areas where LCS are deployed. The contract supports specialized technical expertise within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if post-deployment support requirements are not clearly defined.
Reliance on a single contractor for critical, long-term support could pose a risk if performance degrades.
The specialized nature of the services may limit the pool of qualified alternative providers.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Long-term contract duration allows for sustained support and potential for contractor investment in capabilities.

Sector Analysis

This contract falls within the defense sector, specifically supporting naval vessel operations. The market for naval ship support services is specialized, often dominated by a few key contractors with the requisite technical expertise and security clearances. Spending in this area is driven by defense budgets and the need to maintain a modern and capable fleet. Comparable spending benchmarks would involve analyzing other support contracts for major naval platforms.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large prime contract awarded to Textron Systems Corporation, the focus is likely on prime contractor performance. Further investigation would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Littoral Combat Ship (LCS) Program
Naval Vessel Maintenance and Repair Services
Defense Readiness Support Contracts
Shipbuilding and Repair Services

Risk Flags

NAICS code mismatch with contract description
Potential for limited competition due to specialized nature of services
Long contract duration increases risk of scope creep or performance degradation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 million to TEXTRON SYSTEMS CORPORATION. THREE LCS PRE-DEPLOYMENT, DEPLOYMENT, AND POST-DEPLOYMENT SUPPORT WITH FIVE OPTION PERIODS.

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 $33.7 million.

What is the period of performance?

Start: 2023-06-16. End: 2029-04-30.

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

Textron Systems Corporation has a history of providing defense and aerospace solutions, including support services for various military platforms. Their experience with naval contracts would need to be reviewed in detail, looking at past performance on similar scope and scale. This includes assessing their on-time delivery, quality of service, and adherence to budget on previous government contracts. A review of their contract history with the Department of Defense and other agencies would reveal their capabilities and reliability in fulfilling complex support requirements, particularly for specialized vessels like the LCS.

How does the value of this contract compare to other LCS support contracts?

Direct comparison of this $33.7 million contract value requires access to data on other LCS support contracts, particularly those for pre-deployment, deployment, and post-deployment phases. The duration of over six years suggests a comprehensive support package. If other contracts for similar LCS support services over comparable periods are significantly lower or higher, it would indicate whether this award represents a particularly good or poor value. Factors such as the specific services included, the number of ships supported, and the option periods exercised would need to be considered for an accurate benchmark.

What are the primary risks associated with this contract for the government?

Key risks for the government include potential cost overruns if the firm fixed-price contract does not adequately account for unforeseen technical challenges or scope expansion during the long contract duration. Performance risk is also significant; any degradation in Textron Systems' ability to provide timely and effective support could impact LCS readiness. Furthermore, a sole-source or limited competition scenario in the future, should Textron Systems be the only viable provider, could reduce negotiating leverage. Dependence on a single contractor for critical, long-term support also presents a strategic risk.

How effective is the 'full and open competition after exclusion of sources' method for this type of specialized service?

The 'full and open competition after exclusion of sources' method suggests that while the competition was intended to be broad, certain sources were initially excluded, possibly due to specific technical requirements or pre-qualification criteria. For specialized services like LCS support, this method can be effective if it ensures that only capable contractors participate, thereby streamlining the evaluation process. However, if the exclusion criteria were too restrictive, it might have limited the competitive pool, potentially impacting price discovery. The fact that two bidders participated indicates some level of competition was achieved.

What is the historical spending trend for LCS support services by the Department of the Navy?

Analyzing historical spending trends for LCS support services by the Department of the Navy is crucial for contextualizing this $33.7 million award. This would involve examining aggregate spending on LCS sustainment, maintenance, and operational support over the past several fiscal years. Understanding whether spending has been increasing, decreasing, or remaining stable provides insight into the program's lifecycle and the Navy's commitment to these vessels. Significant year-over-year fluctuations might indicate changes in operational tempo, fleet size, or contracting strategies, all of which are relevant to assessing the current award's place within broader budgetary patterns.

What are the implications of the 'Surveying and Mapping (except Geophysical) Services' NAICS code for this contract?

The assignment of NAICS code 541370, 'Surveying and Mapping (except Geophysical) Services,' to this contract appears unusual given the description of 'LCS pre-deployment, deployment, and post-deployment support.' Typically, LCS support would involve a broader range of services, potentially including engineering, logistics, maintenance, and technical support, which might fall under different NAICS codes (e.g., 541330 - Engineering Services, 541690 - Other Scientific and Technical Consulting Services, or 811219 - Other Electronic and Precision Equipment Repair and Maintenance). This discrepancy warrants further investigation to understand if specific surveying or mapping activities are a core component of the LCS support, or if the NAICS code assignment is inaccurate or overly broad.

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: $50,899,019

Exercised Options: $33,708,261

Current Obligation: $33,708,261

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $664,043

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