DoD awards $23.5M for UAS ISR services to Textron Systems Corp. for 5th Fleet ships

Contract Overview

Contract Amount: $23,490,080 ($23.5M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-26

End Date: 2029-09-26

Contract Duration: 1,826 days

Daily Burn Rate: $12.9K/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: UNMANNED AIR SYSTEMS (UAS) INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) SERVICES FOR THREE (3) SHIPS IN THE 5TH FLEET AREA OF RESPONSIBILITY

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to TEXTRON SYSTEMS CORPORATION for work described as: UNMANNED AIR SYSTEMS (UAS) INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) SERVICES FOR THREE (3) SHIPS IN THE 5TH FLEET AREA OF RESPONSIBILITY Key points: 1. Contract value represents a significant investment in advanced aerial surveillance capabilities. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The contract duration of five years indicates a long-term need for these services. 4. Fixed-price contract type aims to control costs and provide predictability. 5. The services are critical for intelligence gathering in a key geopolitical region. 6. The award to Textron Systems Corporation leverages established expertise in unmanned systems.

Value Assessment

Rating: good

The contract value of $23.5 million over five years for UAS ISR services appears reasonable given the specialized nature of the technology and the operational area. Benchmarking against similar contracts for advanced ISR platforms is challenging due to unique mission requirements and fleet integration. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The number of delivery orders (2) indicates a phased approach to service delivery, which can help in managing the overall expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was broadly advertised, specific sources may have been excluded based on pre-defined criteria, possibly related to technical capabilities or security clearances. The number of bidders is not specified, but the 'full and open' nature suggests a robust competitive process was intended, which generally promotes price discovery and value for money.

Taxpayer Impact: The competitive nature of this award, even with source exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source procurement. It ensures that multiple capable vendors had the opportunity to bid, driving down costs through market forces.

Public Impact

Naval operations in the 5th Fleet Area of Responsibility will benefit from enhanced intelligence, surveillance, and reconnaissance capabilities. The services provided will support maritime security, threat detection, and situational awareness for three specific ships. Geographic impact is focused on the critical waters of the Middle East and surrounding regions. The contract supports specialized technical roles within the defense sector, potentially impacting a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if mission requirements evolve significantly over the five-year period.
Dependence on a single contractor for critical ISR services in a high-risk operational environment.
Ensuring continued technological relevance of UAS platforms throughout the contract duration.
Logistical challenges associated with deploying and maintaining UAS in a forward operating area.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for sustained operational support and planning.
Award to an established contractor like Textron Systems Corporation suggests a high likelihood of successful performance.
The services directly address critical intelligence needs for naval operations.

Sector Analysis

The Unmanned Aerial Systems (UAS) market is a rapidly growing segment within the aerospace and defense industry, driven by demand for advanced ISR capabilities. This contract fits within the broader defense intelligence sector, where spending on surveillance and reconnaissance technologies is substantial. Comparable spending benchmarks are difficult to pinpoint precisely due to the specialized nature of ship-based UAS ISR, but the overall defense budget for intelligence and surveillance systems runs into billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Textron Systems Corporation, is a large defense contractor. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, though Textron may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract award notices and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Unmanned Maritime Systems (UMS)
Department of Defense Intelligence, Surveillance, and Reconnaissance (ISR) Services
5th Fleet Operations Support Contracts

Risk Flags

Long-term contract duration may outpace rapid technological advancements in UAS.
Operational environment in the 5th Fleet AOR presents unique logistical and security challenges.
Dependence on a single contractor for critical ISR capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to TEXTRON SYSTEMS CORPORATION. UNMANNED AIR SYSTEMS (UAS) INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (ISR) SERVICES FOR THREE (3) SHIPS IN THE 5TH FLEET AREA OF RESPONSIBILITY

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 $23.5 million.

What is the period of performance?

Start: 2024-09-26. End: 2029-09-26.

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

Textron Systems Corporation has a significant history of providing unmanned systems and related services to the Department of Defense, including the Navy. They are known for platforms like the Shadow and Aerosonde. While specific contract details for similar UAS ISR services to the Navy are not fully detailed in this award notice, their established presence and experience with unmanned aerial vehicles suggest a strong capability. Past performance reviews and contract close-outs for previous Navy contracts would provide a more granular assessment of their track record, including on-time delivery, technical performance, and cost control on prior ISR-related engagements.

How does the cost per operational hour or per flight hour for this contract compare to industry benchmarks?

Determining a precise cost per operational hour or flight hour for this contract is challenging without more detailed breakdowns of service delivery and utilization rates. The total contract value of $23.5 million over five years, with two delivery orders, needs to be allocated across the specific services rendered. Industry benchmarks for UAS ISR services can vary widely based on platform type (fixed-wing, rotary, VTOL), sensor payload, mission duration, and operational complexity. Given the specialized nature of ship-based ISR in the 5th Fleet AOR, it is likely to be at the higher end of the spectrum compared to domestic or less demanding operational environments. A detailed analysis would require access to the specific delivery orders and performance metrics.

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

Key risks include technological obsolescence of UAS platforms over the five-year contract, potential for mission creep requiring expanded services beyond the initial scope, and operational challenges in a demanding maritime environment. Mitigation strategies likely involve contract clauses for technology refresh or upgrades, clear definition of service scope within delivery orders, and robust logistical support plans. The firm-fixed-price nature also incentivizes the contractor to manage operational risks efficiently. Furthermore, the 'full and open competition after exclusion of sources' suggests a careful selection process aimed at choosing a contractor with proven capabilities to minimize performance risks.

How effective are UAS ISR services in supporting naval operations in the 5th Fleet Area of Responsibility?

UAS ISR services are highly effective in supporting naval operations in the 5th Fleet AOR by providing persistent surveillance, real-time intelligence, and enhanced situational awareness over vast maritime areas. They can monitor chokepoints, track potential threats, support counter-piracy efforts, and provide reconnaissance for fleet movements. The ability of UAS to operate in contested or denied environments where manned aircraft might be at higher risk is also a significant advantage. The data collected by these systems directly informs operational decision-making, improving the safety and effectiveness of naval assets and personnel in this critical region.

What has been the historical spending trend for UAS ISR services by the Department of the Navy?

Historical spending by the Department of the Navy on UAS ISR services has shown a consistent upward trend over the past decade, reflecting the increasing recognition of their value and the maturation of UAS technology. Initial investments were often in smaller, tactical systems, but have evolved towards more sophisticated, persistent ISR platforms capable of supporting fleet-wide operations. The Navy has actively pursued various programs to integrate UAS across different platforms and mission sets, including carrier-based and surface-vessel-based ISR. This $23.5 million award is indicative of continued investment in this capability area, aligning with broader defense modernization efforts.

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: $48,297,565

Exercised Options: $23,490,080

Current Obligation: $23,490,080

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