DoD Awards $27.9M for EAGLS C-UAS Systems to MSI Defense Solutions, Lacking Competition
Contract Overview
Contract Amount: $27,879,853 ($27.9M)
Contractor: MSI Defense Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2024-02-13
End Date: 2025-09-30
Contract Duration: 595 days
Daily Burn Rate: $46.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF FIVE (5) EAGLS C-UAS MODULAR SYSTEMS AND ASSOCIATED ENGINEERING AND MAINTENANCE SUPPORT, SUPPORT EQUIPMENT, SPARES, INITIAL TRAINING MATERIALS, AND TECHNICAL MANUALS.
Place of Performance
Location: MOORESVILLE, IREDELL County, NORTH CAROLINA, 28117
Plain-Language Summary
Department of Defense obligated $27.9 million to MSI DEFENSE SOLUTIONS LLC for work described as: PROCUREMENT OF FIVE (5) EAGLS C-UAS MODULAR SYSTEMS AND ASSOCIATED ENGINEERING AND MAINTENANCE SUPPORT, SUPPORT EQUIPMENT, SPARES, INITIAL TRAINING MATERIALS, AND TECHNICAL MANUALS. Key points: 1. The Department of the Navy awarded a $27.9 million contract for EAGLS Counter-Unmanned Aerial Systems (C-UAS) modular systems. 2. MSI Defense Solutions LLC is the sole awardee, with the contract being 'NOT COMPETED'. 3. The contract includes engineering, maintenance, support equipment, spares, and training. 4. This procurement falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. 5. The contract is a Firm Fixed Price type with a duration of 595 days.
Value Assessment
Rating: questionable
The $27.9 million award for five EAGLS C-UAS systems appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the pricing is reasonable compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this significant procurement raises concerns about the optimal use of taxpayer funds.
Public Impact
Enhances military capabilities in counter-unmanned aerial systems, a growing area of concern. Supports the Department of the Navy's operational readiness and technological advancement. Potential for increased costs to taxpayers due to the sole-source nature of the award. Impacts the market for C-UAS technology by awarding to a single provider without exploring other options.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High dollar value for a single vendor
Positive Signals
- Addresses a critical defense need (C-UAS)
- Includes comprehensive support and training
Sector Analysis
This procurement is within the defense sector, specifically focusing on advanced electronic systems for counter-unmanned aerial threats. Spending in this area is increasing globally due to evolving security challenges.
Small Business Impact
The contract was awarded to MSI Defense Solutions LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further analysis would be needed to determine potential subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery. Accountability will be key in verifying the value and necessity of this procurement.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing validation.
- Potential for overpayment due to absence of competition.
- Risk of vendor lock-in for critical defense technology.
- Limited transparency on the specific capabilities and necessity of the chosen system.
- No indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to MSI DEFENSE SOLUTIONS LLC. PROCUREMENT OF FIVE (5) EAGLS C-UAS MODULAR SYSTEMS AND ASSOCIATED ENGINEERING AND MAINTENANCE SUPPORT, SUPPORT EQUIPMENT, SPARES, INITIAL TRAINING MATERIALS, AND TECHNICAL MANUALS.
Who is the contractor on this award?
The obligated recipient is MSI DEFENSE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 2024-02-13. End: 2025-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing without competition?
The justification for a sole-source award typically involves specific circumstances, such as the unique capabilities of a particular vendor or urgent needs that preclude a competitive process. Agencies are required to document these justifications thoroughly. For pricing, even without competition, the government should conduct market research and use cost analysis techniques to validate the reasonableness of the proposed price against independent estimates or historical data.
What are the specific risks associated with procuring advanced C-UAS systems through a sole-source contract, particularly regarding technological obsolescence and vendor lock-in?
Sole-source contracts for advanced technology like C-UAS systems carry risks of technological obsolescence if the vendor does not continuously innovate or if alternative, superior technologies emerge. Vendor lock-in is another significant risk, as the government may become dependent on a single supplier, limiting future flexibility and potentially leading to higher long-term costs for upgrades or maintenance.
How will the effectiveness of the EAGLS C-UAS modular systems be measured, and what metrics will be used to assess the return on investment for this $27.9 million expenditure?
The effectiveness of the C-UAS systems will likely be measured through performance-based metrics outlined in the contract, such as detection range, accuracy, response time, and successful neutralization rates in realistic scenarios. Assessing the return on investment will involve evaluating the system's contribution to mission success, force protection, and the prevention of potential damages or threats, weighed against the total cost of ownership.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 136 KNOB HILL RD, MOORESVILLE, NC, 28117
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,935,444
Exercised Options: $27,879,853
Current Obligation: $27,879,853
Actual Outlays: $14,564,458
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-13
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-18
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