DoD's $9.8M R&D Contract with DRS Network & Imaging Systems LLC Under Full and Open Competition
Contract Overview
Contract Amount: $9,832,008 ($9.8M)
Contractor: DRS Network & Imaging Systems LLC
Awarding Agency: Department of Defense
Start Date: 2006-07-14
End Date: 2011-05-15
Contract Duration: 1,766 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75243
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $9.8 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: RESEARCH AND DEVELOPMENT Key points: 1. Significant investment in physical, engineering, and life sciences R&D. 2. Competition was open, suggesting potential for competitive pricing. 3. Contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. Focus on R&D indicates innovation and future capability development.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while common for R&D, carries inherent risks of cost escalation. Benchmarking is difficult without specific deliverables and comparable projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically fosters competitive pricing. However, the Cost Plus Fixed Fee structure may limit the direct impact of price discovery on the final cost.
Taxpayer Impact: Taxpayer funds are supporting advanced research, with the potential for significant long-term benefits if successful, but also the risk of inefficient spending due to contract type.
Public Impact
Supports technological advancement in physical, engineering, and life sciences. Contract awarded through a competitive process, aiming for best value. Potential for groundbreaking discoveries and enhanced national security capabilities. Long-term contract duration suggests a sustained research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (1766 days)
Positive Signals
- Full and open competition
- Focus on R&D
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and national security, with typical contract values varying widely based on project scope.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The use of full and open competition suggests a structured procurement process. Oversight would focus on managing the Cost Plus Fixed Fee aspects to ensure efficient use of funds and achievement of R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Long contract duration may indicate scope creep or slow progress
- Lack of specific R&D outcome data
Tags
research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.8 million to DRS NETWORK & IMAGING SYSTEMS LLC. RESEARCH AND DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is DRS NETWORK & IMAGING SYSTEMS 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 $9.8 million.
What is the period of performance?
Start: 2006-07-14. End: 2011-05-15.
What specific R&D outcomes were achieved relative to the $9.8M investment?
Without detailed project reports or final deliverables, it's impossible to definitively assess the value achieved. The success of R&D contracts is often measured by long-term technological advancements, patents, or new capabilities, which may not be immediately apparent or quantifiable against the initial cost.
What were the primary risks associated with the Cost Plus Fixed Fee structure for this R&D effort?
The primary risk is cost overrun, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior. For R&D, defining 'allowable costs' and ensuring they directly contribute to project goals requires diligent oversight to prevent unnecessary expenditures.
How effective was the full and open competition in ensuring the best value for this specific R&D project?
While full and open competition theoretically maximizes value by allowing all eligible sources to bid, its effectiveness for R&D can be nuanced. The technical complexity of R&D might favor specialized firms, and the Cost Plus Fixed Fee structure can moderate the direct price competition's impact on the final cost.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA (UEI: 428869465)
Address: 100 N BABCOCK ST, MELBOURNE, FL, 32935
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: $9,836,826
Exercised Options: $9,836,826
Current Obligation: $9,832,008
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-07-14
Current End Date: 2011-05-15
Potential End Date: 2012-05-15 00:00:00
Last Modified: 2016-09-22
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