Naval Air Systems Command contract for electrical measurement instruments awarded to Systems & Electronics Inc. for $35.6M

Contract Overview

Contract Amount: $35,598,870 ($35.6M)

Contractor: DRS Sustainment Systems, Inc

Awarding Agency: Department of Defense

Start Date: 1998-07-30

End Date: 2008-12-30

Contract Duration: 3,806 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199812!1700!1131!AM621!NAVAL AIR SYSTEMS COMMAND !N0018995C0333 !A!*!P00003 !19980730!19981102!006265466!803404102!618957153!N!20418!SYSTEMS & ELECTRONICS INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !0001!+000003534672!N!N!000000000000!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A1C!OTHER AIRCRAFT EQUIPMENT !2GHB!CASS !3812!3!*!*!C!B!A!*!A !U!L!2!002!B!* !A!Y!A!* !* !N!C!*!D!Z!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63101

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to DRS SUSTAINMENT SYSTEMS, INC for work described as: 199812!1700!1131!AM621!NAVAL AIR SYSTEMS COMMAND !N0018995C0333 !A!*!P00003 !19980730!19981102!006265466!803404102!618957153!N!20418!SYSTEMS & ELECTRONICS INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. LO… Key points: 1. Contract value of $35.6 million for electrical measurement and test instruments. 2. Awarded by the Department of the Navy, indicating a focus on aviation support. 3. Full and open competition suggests a competitive bidding process. 4. The contract duration of approximately 10 years implies a long-term need for these specialized instruments. 5. The Product Service Code (PSC) 6625 points to a niche market within defense procurement. 6. The contractor, Systems & Electronics Inc., has a track record with this type of specialized equipment.

Value Assessment

Rating: good

The contract value of $35.6 million for specialized electrical measurement and test instruments appears reasonable given the 10-year duration. Benchmarking against similar contracts for advanced testing equipment is challenging without more specific details on the instrument capabilities. However, the firm fixed-price structure suggests that the government has a clear understanding of the costs involved, and the contractor bears the risk of cost overruns. The award to a single entity for this amount over a decade indicates a significant investment in a specific technological capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specialized requirement. While not a large number of bidders, full and open competition generally leads to better price discovery and value for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, is beneficial for taxpayers as it encourages competitive pricing and ensures that the government is not overpaying for specialized equipment.

Public Impact

Naval Air Systems Command personnel benefit from access to advanced electrical measurement and test instruments. The contract supports the maintenance, testing, and readiness of naval aircraft and related systems. The geographic impact is primarily within naval aviation facilities where these instruments are deployed. Workforce implications include the need for trained personnel to operate and maintain the specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the instruments are highly proprietary or require specialized maintenance.
Risk of obsolescence over the 10-year contract period if technology advances rapidly.
Dependence on a single contractor for critical testing equipment could pose supply chain risks.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Long contract duration suggests a stable and predictable need, allowing for potential volume discounts.
Full and open competition, even with two bidders, indicates an effort to secure competitive pricing.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting naval aviation's need for specialized test and measurement equipment. The market for such instruments is often characterized by high technical barriers to entry and a limited number of specialized manufacturers. Comparable spending benchmarks are difficult to establish without knowing the exact specifications of the instruments, but defense contracts for advanced electronics and testing gear can range from millions to tens of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Systems & Electronics Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether subcontracts were awarded to small businesses, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Air Systems Command (NAVAIR) contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and delivery schedules. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance Programs
Aircraft Systems Testing Equipment
Defense Procurement of Electronic Instruments
Department of Defense Test & Evaluation Contracts

Risk Flags

Long contract duration may lead to technology obsolescence.
Limited number of bidders could indicate market concentration.
Potential for vendor lock-in with specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to DRS SUSTAINMENT SYSTEMS, INC. 199812!1700!1131!AM621!NAVAL AIR SYSTEMS COMMAND !N0018995C0333 !A!*!P00003 !19980730!19981102!006265466!803404102!618957153!N!20418!SYSTEMS & ELECTRONICS INC !201 EVANS LN !SAINT LOUIS !MO!63121!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !0001!+000003534672!N!N!000000000000!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A1C!OTHER AIRCRAFT EQUIPMENT !2GHB!CASS !3812!3!*!*!C!B!A!*!A !U!L!2!0

Who is the contractor on this award?

The obligated recipient is DRS SUSTAINMENT SYSTEMS, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 1998-07-30. End: 2008-12-30.

What is the specific type and capability of the electrical measurement and test instruments procured under this contract?

The provided data indicates the Product Service Code (PSC) as 6625, which covers 'Electrical and Electronic Properties Measuring and Testing Instruments.' This broad category includes a wide array of equipment such as oscilloscopes, multimeters, signal generators, spectrum analyzers, and specialized diagnostic tools. Without further details, the exact capabilities remain unspecified. However, given the context of naval aviation, these instruments are likely designed for high-reliability, precision testing of complex electronic systems found in aircraft, including avionics, radar, and communication systems. They may need to meet stringent military specifications (Mil-Spec) for environmental resistance (temperature, vibration, humidity) and accuracy.

How does the $35.6 million contract value compare to typical spending on similar test equipment by the Department of Defense?

The $35.6 million contract value over a 10-year period averages approximately $3.56 million per year. This figure is substantial but not extraordinary within the context of large defense procurements for specialized equipment. The Department of Defense frequently awards contracts in the tens or hundreds of millions for complex systems and their associated support equipment. For niche items like advanced avionics test sets, annual spending can easily reach several million dollars per program. The value appears reasonable for a long-term sustainment or upgrade contract for critical testing infrastructure, especially considering the potential for high unit costs of sophisticated measurement devices.

What are the potential risks associated with a 10-year contract for electronic test equipment?

A significant risk with a 10-year contract for electronic test equipment is technological obsolescence. Electronic components and testing methodologies can evolve rapidly, potentially rendering the procured equipment outdated before the contract term concludes. This could lead to the government possessing equipment that is no longer state-of-the-art or compatible with newer systems. Another risk is the contractor's ability to maintain support and calibration services over such an extended period. Furthermore, if the instruments are highly specialized, there's a risk of vendor lock-in, making it difficult and costly to switch to alternative solutions if performance issues arise or if better technology becomes available from other sources.

What does the 'full and open competition' with two bidders imply for the contractor's market position?

The fact that this contract was awarded under 'full and open competition' signifies that the bidding process was open to all eligible companies. However, receiving only two bids suggests that the market for these specific electrical measurement and test instruments is relatively concentrated. This could indicate that only a few companies possess the necessary technical expertise, manufacturing capabilities, and security clearances to compete for such defense contracts. For the winning contractor, Systems & Electronics Inc., it implies they were one of the few capable and competitive entities in this specialized niche, likely possessing a strong technical offering and competitive pricing to secure the award against at least one other bidder.

How has the Department of the Navy's spending on electrical and electronic measurement instruments evolved over time?

Analyzing the historical spending trends for the Department of the Navy (DoN) on PSC 6625 (Electrical and Electronic Properties Measuring and Testing Instruments) requires access to comprehensive procurement databases beyond this single contract. This specific contract, awarded in 1998 and ending in 2008, represents spending during that period. Generally, defense spending on test and measurement equipment fluctuates based on modernization programs, aircraft fleet readiness requirements, and technological advancements. Periods of significant aircraft platform development or upgrades often correlate with increased demand for new or enhanced testing capabilities. Without broader data, it's impossible to determine if this $35.6M contract was part of a larger trend or an isolated significant procurement.

What is the significance of the contractor 'SYSTEMS & ELECTRONICS INC' in the defense contracting landscape?

Systems & Electronics Inc. (SEI) appears to be a specialized contractor within the defense sector, focusing on electronic systems and potentially related test equipment, as indicated by this award. Their involvement in a full and open competition for a significant contract suggests they possess the technical capabilities and capacity to meet demanding military requirements. Companies like SEI often play a crucial role in supporting complex defense platforms by providing essential components, subsystems, or specialized support equipment. Their track record, including this contract, would be a key factor for future awards, particularly in areas requiring deep technical expertise in electronics and measurement instrumentation for aviation applications.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Leonardo SPA (UEI: 428869465)

Address: 201 EVANS LN, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline