DoD awards Textron Systems $25.2M for ISR services, including training and support

Contract Overview

Contract Amount: $25,185,203 ($25.2M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-06-13

End Date: 2027-10-26

Contract Duration: 1,230 days

Daily Burn Rate: $20.5K/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: ISR SERVICES AT OIR LOT 4 SITES 8 AND 9 TO INCLUDE ISR LAND-BASED FAMILIARIZATION TRAINING, ISR LAND-BASED MISSION COORDINATOR, SITE SURVEY, PRE-DEPLOYMENT, DEPLOYMENT, AND POST-DEPLOYMENT SUPPORT FOR UP TO 36 MONTHS (BASE AND THREE OPTION PERIODS).

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to TEXTRON SYSTEMS CORPORATION for work described as: ISR SERVICES AT OIR LOT 4 SITES 8 AND 9 TO INCLUDE ISR LAND-BASED FAMILIARIZATION TRAINING, ISR LAND-BASED MISSION COORDINATOR, SITE SURVEY, PRE-DEPLOYMENT, DEPLOYMENT, AND POST-DEPLOYMENT SUPPORT FOR UP TO 36 MONTHS (BASE AND THREE OPTION PERIODS). Key points: 1. Contract value appears reasonable given the scope of intelligence, surveillance, and reconnaissance (ISR) services, training, and multi-year support. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract includes firm-fixed-price terms, which transfers some cost risk to the contractor. 4. Performance is expected over approximately three years, indicating a medium-term commitment. 5. This contract falls within the broader Defense sector, specifically supporting intelligence gathering and operational readiness. 6. The award was made by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: good

The contract's total value of approximately $25.2 million over three years for comprehensive ISR services, including specialized training and deployment support, appears to be within a reasonable range for such complex operations. Benchmarking against similar ISR support contracts within the Department of Defense suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the award. The inclusion of multiple option periods allows for flexibility while managing overall program costs.

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 solicited and evaluated. The presence of two bidders suggests a degree of competition, which is generally beneficial for price discovery and ensuring value for the government. The specific exclusion of sources prior to the full and open competition phase warrants further investigation to understand if it limited the overall competitive landscape.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayers, as it increases the likelihood of receiving competitive pricing and prevents potential price inflation associated with sole-source or limited-source awards.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring advanced ISR capabilities. Services delivered include crucial ISR land-based familiarization training, mission coordination, site surveys, and pre-deployment, deployment, and post-deployment support. The geographic impact is likely focused on operational theaters where ISR capabilities are deployed, with potential implications for national security. Workforce implications include the need for skilled personnel to perform ISR missions and training, potentially creating or sustaining specialized jobs within Textron Systems Corporation and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on contractor performance for critical ISR functions could pose a risk if capabilities are not consistently met.
The exclusion of sources prior to the full and open competition phase might have limited the breadth of competition.

Positive Signals

Firm-fixed-price contract structure helps control costs and manage budget predictability.
Award to an established contractor like Textron Systems Corporation suggests a level of confidence in their capabilities.
Multi-year support structure provides continuity for essential ISR operations.

Sector Analysis

The Intelligence, Surveillance, and Reconnaissance (ISR) services market within the defense sector is a critical and substantial segment. This contract fits within the broader defense intelligence and support services industry, which is characterized by high technological requirements and specialized expertise. The total addressable market for defense ISR services is in the billions of dollars annually, with significant government investment driven by evolving geopolitical landscapes and the need for real-time situational awareness. Comparable spending benchmarks for similar multi-year ISR support contracts often range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. Furthermore, the contractor, Textron Systems Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Navy contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services and support. Transparency is facilitated through contract award databases and reporting mechanisms. While no specific Inspector General (IG) jurisdiction is mentioned, the Department of Defense Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Services
Department of Defense Training Contracts
Naval Support Services
Information Technology Support Services (if applicable to ISR data processing)
Defense Logistics and Support Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Contract performance risk for specialized ISR services.
Need for clear definition and management of scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to TEXTRON SYSTEMS CORPORATION. ISR SERVICES AT OIR LOT 4 SITES 8 AND 9 TO INCLUDE ISR LAND-BASED FAMILIARIZATION TRAINING, ISR LAND-BASED MISSION COORDINATOR, SITE SURVEY, PRE-DEPLOYMENT, DEPLOYMENT, AND POST-DEPLOYMENT SUPPORT FOR UP TO 36 MONTHS (BASE AND THREE 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 $25.2 million.

What is the period of performance?

Start: 2024-06-13. End: 2027-10-26.

What is Textron Systems Corporation's track record with similar ISR service contracts for the Department of Defense?

Textron Systems Corporation has a significant history of providing defense and aerospace solutions, including ISR capabilities. They have been involved in various programs related to unmanned aerial systems (UAS), sensor integration, and mission support. Their experience often includes developing and integrating advanced technologies for intelligence gathering and surveillance. While specific details of past ISR service contracts would require deeper analysis of federal procurement data, Textron's established presence in the defense sector suggests a substantial track record in areas relevant to this award. Past performance evaluations, typically part of the source selection process, would have informed the Navy's decision to award this contract.

How does the $25.2 million contract value compare to other ISR support contracts awarded by the Department of the Navy in the last three years?

The $25.2 million contract value for approximately three years of ISR services, including training and support, positions it as a mid-sized award within the broader ISR domain. The Department of the Navy, along with other DoD branches, awards numerous contracts for ISR capabilities, ranging from small, specialized sensor procurements to large, multi-billion dollar platform development and sustainment programs. Contracts for similar comprehensive ISR support services, encompassing training, mission coordination, and deployment, often fall within the $10 million to $50 million range over similar timeframes. This specific award appears to be competitive and aligned with market rates for the scope of services described, especially given the firm-fixed-price structure which aims for cost certainty.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential performance shortfalls in delivering critical ISR services, technical challenges in integrating or operating specified systems, and potential cost overruns if the firm-fixed-price structure is not adequately managed. Mitigation strategies are inherent in the contract's design and oversight. The firm-fixed-price nature transfers some cost risk to Textron Systems Corporation. The requirement for specific deliverables and performance standards, coupled with the Department of the Navy's oversight, aims to ensure service delivery. Furthermore, the competitive award process suggests that Textron was assessed as having the capability and capacity to meet these requirements, reducing the risk of contractor failure.

What is the expected effectiveness of the ISR services and training provided under this contract for enhancing operational readiness?

The effectiveness of the ISR services and training is expected to be high, given the critical nature of intelligence, surveillance, and reconnaissance for modern military operations. The contract specifically includes familiarization training, mission coordination, and deployment support, which are essential for ensuring personnel are proficient in utilizing ISR assets and interpreting data. Enhanced ISR capabilities directly contribute to improved situational awareness, better decision-making, and ultimately, increased operational readiness and mission success. The multi-year duration allows for sustained capability development and adaptation to evolving operational needs.

What are the historical spending patterns for ISR services within the Department of the Navy, and how does this contract fit?

The Department of the Navy consistently allocates significant funding towards ISR capabilities, reflecting its operational requirements across naval, amphibious, and air domains. Historical spending patterns show a steady investment in platforms, sensors, data analysis, and associated support services. This $25.2 million contract for land-based ISR services and training fits within this pattern by addressing a specific, albeit crucial, component of the Navy's overall ISR enterprise. It complements spending on larger platforms and advanced sensor systems by ensuring the personnel and operational support necessary to effectively leverage these assets.

What is the significance of the 'exclusion of sources' clause in the contract's competition type?

The 'full and open competition after exclusion of sources' designation indicates that while the competition was broadly solicited, certain potential sources were intentionally excluded prior to the main solicitation. The reasons for such exclusions can vary, including prior performance issues, inability to meet specific technical requirements, or national security considerations. The significance for taxpayers is that while full and open competition is generally preferred, the exclusion of sources might have narrowed the competitive field, potentially impacting the final price achieved compared to a scenario with unrestricted competition. Understanding the rationale behind the exclusion is key to fully assessing the competitive dynamics.

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: $45,053,634

Exercised Options: $25,185,203

Current Obligation: $25,185,203

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $5,178,061

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