DoD awards $19.4M for Ship Building and Repairing to DRS Defense Solutions LLC under a sole-source contract
Contract Overview
Contract Amount: $19,439,693 ($19.4M)
Contractor: DRS Defense Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-22
End Date: 2016-07-15
Contract Duration: 2,123 days
Daily Burn Rate: $9.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INPUT/OUTPUT UNIT (IOU) 15 SLOT
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $19.4 million to DRS DEFENSE SOLUTIONS LLC for work described as: INPUT/OUTPUT UNIT (IOU) 15 SLOT Key points: 1. Significant contract value for specialized ship repair services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (2123 days) suggests a complex, ongoing need. 4. The IT sector (NAICS 336611) is critical for modern naval operations.
Value Assessment
Rating: questionable
The contract value of $19.4M over approximately 5.8 years averages to about $3.3M annually. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this pricing is competitive. The lack of competition makes benchmarking challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The absence of competition could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers for these essential services.
Public Impact
Ensures continued operational readiness for naval vessels. Supports specialized jobs in the shipbuilding and repair industry. Potential for increased costs due to lack of competitive pressure. Highlights reliance on specific contractors for critical defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Long-term dependency on a single provider
Positive Signals
- Ensures specialized capability is maintained
- Supports critical defense infrastructure
Sector Analysis
The shipbuilding and repairing sector (NAICS 336611) is a vital component of national defense, requiring specialized expertise and facilities. Spending in this area is often driven by specific fleet needs and long-term maintenance cycles.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on contract performance, delivery, and adherence to terms, especially given the sole-source nature.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration increases risk of cost escalation.
- Potential for vendor lock-in.
- Lack of transparency in justification for sole-sourcing.
Tags
ship-building-and-repairing, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to DRS DEFENSE SOLUTIONS LLC. INPUT/OUTPUT UNIT (IOU) 15 SLOT
Who is the contractor on this award?
The obligated recipient is DRS DEFENSE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $19.4 million.
What is the period of performance?
Start: 2010-09-22. End: 2016-07-15.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of adequate competition. Without specific documentation, it's unclear why DRS Defense Solutions LLC was the only viable option. Exploring the rationale is crucial for understanding potential missed opportunities for cost savings through competition.
How does the pricing structure and overall cost compare to similar ship repair contracts awarded competitively?
Benchmarking this contract's pricing against competitively awarded contracts is essential for assessing value. Given the sole-source nature, direct comparisons are difficult. A thorough cost analysis, including labor rates, material costs, and overhead, would be necessary to determine if the government received fair and reasonable pricing.
What mechanisms are in place to ensure effective performance and prevent cost overruns on this long-term, sole-source contract?
Effective oversight, including regular performance reviews, milestone tracking, and potentially independent cost audits, are critical for managing long-term sole-source contracts. Clear performance metrics and defined deliverables help ensure accountability and mitigate risks associated with a lack of competitive pressure.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: FIBER OPTIC
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0017810R2007
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA (UEI: 428869465)
Address: 1 MILESTONE CENTER CT, GERMANTOWN, MD, 20876
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,350,974
Exercised Options: $19,828,394
Current Obligation: $19,439,693
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-22
Current End Date: 2016-07-15
Potential End Date: 2016-07-15 00:00:00
Last Modified: 2018-08-06
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