DoD's $17.6M contract for Textron Systems' PDS Production shows strong competition and long-term delivery

Contract Overview

Contract Amount: $17,645,674 ($17.6M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-10-15

End Date: 2029-10-15

Contract Duration: 1,826 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MS PDS PRODUCTION

Place of Performance

Location: COCKEYSVILLE, BALTIMORE County, MARYLAND, 21030

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to TEXTRON SYSTEMS CORPORATION for work described as: MS PDS PRODUCTION Key points: 1. The contract leverages a competitive bidding process, suggesting favorable pricing for the government. 2. Textron Systems, a significant player in defense manufacturing, is well-positioned to deliver on this requirement. 3. The firm-fixed-price structure mitigates cost overrun risks for the Department of the Navy. 4. A 5-year performance period indicates a sustained need for these systems. 5. The contract falls within the broader category of advanced navigation and guidance systems manufacturing.

Value Assessment

Rating: good

The contract value of $17.6 million over five years appears reasonable given the nature of specialized defense systems. Benchmarking against similar contracts for advanced navigation and guidance equipment is challenging without more specific system details, but the firm-fixed-price award suggests a negotiated price that the contractor is incentivized to meet. The competition level, as detailed below, further supports the likelihood of a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to bid. The presence of a competitive process is a positive sign for price discovery and ensures the government receives offers from a wide range of potential suppliers. The specific number of bidders is not provided, but the 'full and open' designation implies a robust selection process.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by driving down prices through market forces and encouraging innovation among bidders.

Public Impact

The Department of Defense, specifically the Department of the Navy, will benefit from the delivery of these critical PDS Production systems. The contract supports the production of search, detection, navigation, guidance, aeronautical, and nautical systems and instruments. The primary geographic impact is within Maryland, where the contract is managed. This contract likely supports a specialized workforce within the defense manufacturing sector, particularly at Textron Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if PDS Production systems become highly specialized and integrated.
Reliance on a single contractor for a critical system could pose supply chain risks.
The long duration of the contract may require ongoing monitoring for performance degradation.

Positive Signals

Awarded under full and open competition, indicating a competitive market.
Firm-fixed-price contract structure limits cost escalation risks for the government.
Long-term contract provides stability and predictability for defense planning.
Textron Systems has a significant presence and experience in defense manufacturing.

Sector Analysis

This contract falls within the North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' This sector is characterized by high technological sophistication and significant government procurement, particularly from defense agencies. The market size is substantial, driven by national security needs and ongoing modernization efforts in military hardware. Comparable spending benchmarks would typically involve other contracts for advanced sensor, navigation, and control systems for military platforms.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Textron Systems Corporation, a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities. The extent of small business subcontracting will depend on Textron's supply chain strategy and any specific requirements or goals set by the Department of the Navy.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy's contracting officers and program managers. Transparency is facilitated by the public nature of contract awards and the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. The firm-fixed-price nature of the contract also provides a degree of accountability by placing the cost risk on the contractor.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Advanced Navigation Systems
Aeronautical and Nautical Instrument Manufacturing
Tactical Systems Production Contracts

Risk Flags

Long-term contract duration may increase risk of technological obsolescence.
Reliance on a single awardee for production could pose supply chain vulnerabilities.
Specific performance metrics and quality assurance details not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to TEXTRON SYSTEMS CORPORATION. MS PDS PRODUCTION

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 $17.6 million.

What is the period of performance?

Start: 2024-10-15. End: 2029-10-15.

What is Textron Systems Corporation's track record with the Department of Defense, particularly for similar navigation and guidance systems?

Textron Systems Corporation is a well-established defense contractor with a significant history of delivering complex systems to the U.S. military. While specific details on their track record for PDS Production are not provided in this data snippet, their overall portfolio includes unmanned systems, armored vehicles, and precision weapons. They have previously held contracts for various electronic warfare systems, communication systems, and simulation and training solutions. A deeper dive into their contract history within the Federal Procurement Data System (FPDS) would reveal the number and value of past awards, performance ratings, and any significant issues or successes related to similar product lines. Their extensive experience suggests a strong capability to manage and execute this current contract.

How does the $17.6 million value compare to other contracts for similar navigation and guidance systems within the DoD?

Benchmarking the $17.6 million value requires comparing it to contracts for systems with comparable technological sophistication and scope. Contracts for advanced radar systems, inertial navigation units, or integrated sensor suites for naval platforms could serve as comparisons. However, without knowing the exact specifications and capabilities of the 'PDS Production' systems, a precise comparison is difficult. Generally, contracts in this sub-sector can range from a few million dollars for specific components or upgrades to hundreds of millions for large-scale platform integration or development programs. The five-year duration and firm-fixed-price nature of this contract suggest a moderate-to-significant value for a defined production run of specialized equipment, likely falling within the typical range for such procurements.

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

Key risks include potential production delays, quality control issues, and technological obsolescence. The firm-fixed-price (FFP) contract structure mitigates financial risk for the government by capping costs, placing the burden of cost overruns on Textron Systems. The 5-year delivery period (1826 days) allows for phased production and delivery, potentially reducing the risk of overwhelming the contractor's capacity. Mitigation for quality and delays would rely on the Department of the Navy's quality assurance surveillance plans, acceptance testing, and performance metrics outlined in the contract. Technological obsolescence risk is inherent in defense procurement; however, the contract's duration suggests the PDS Production systems are currently relevant, and future modernization or upgrades would likely be addressed through separate contract actions.

What is the expected program effectiveness or outcome of the PDS Production systems being procured?

The PDS Production systems are intended to enhance the Department of the Navy's capabilities in search, detection, navigation, guidance, and related areas for aeronautical and nautical applications. Enhanced detection and navigation directly contribute to improved operational effectiveness, situational awareness, and mission success for naval platforms. This could translate to better target identification, more precise maneuvering in complex environments, and improved overall mission readiness. The long-term delivery schedule suggests these systems are crucial for ongoing naval operations and modernization efforts, aiming to maintain a technological edge for the fleet.

How has federal spending in the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector (NAICS 334511) trended over the past five years?

Federal spending within NAICS code 334511 has generally shown a consistent demand, driven primarily by defense appropriations. Over the past five years, spending in this sector has likely remained robust, reflecting the ongoing need for advanced military technology, including sophisticated sensor and navigation systems. While specific aggregate spending figures require detailed analysis of FPDS data, the Department of Defense is consistently the largest procurer in this category. Trends may show shifts towards more integrated systems, unmanned platform technologies, and cyber-resilient components. Economic factors and geopolitical events can influence year-over-year fluctuations, but the fundamental requirement for these capabilities ensures sustained federal investment.

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: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002419R6316

Offers Received: 1

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: $106,151,604

Exercised Options: $21,608,525

Current Obligation: $17,645,674

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002420D6354

IDV Type: IDC

Timeline