DoD awards $22.7M for wired housing assemblies to DRS Network & Imaging Systems, with 100% option

Contract Overview

Contract Amount: $22,771,193 ($22.8M)

Contractor: DRS Network & Imaging Systems LLC

Awarding Agency: Department of Defense

Start Date: 2016-07-25

End Date: 2018-12-15

Contract Duration: 873 days

Daily Burn Rate: $26.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARDED 25 JUL 16 TO DRS NETWORK&IMAGINING SYSTEMS, LLC FOR 250 EA WIRED HOUSING ASSEMBLIES, NSN 855-01-588-5668, WITH 100% OPTION.

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32935

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: AWARDED 25 JUL 16 TO DRS NETWORK&IMAGINING SYSTEMS, LLC FOR 250 EA WIRED HOUSING ASSEMBLIES, NSN 855-01-588-5668, WITH 100% OPTION. Key points: 1. The contract for wired housing assemblies was awarded to a single vendor, DRS Network & Imaging Systems LLC. 2. The total award value is $22,771,192.50, with a 100% option, indicating potential for future spending. 3. The contract was not competed, raising questions about price discovery and potential value for taxpayers. 4. The sector is Miscellaneous Manufacturing, with a specific National Stock Number (NSN) for the item.

Value Assessment

Rating: questionable

The contract value of $22.7M for 250 units seems high without competitive benchmarking. The per-unit cost is approximately $91,084.6. Further analysis is needed to compare this to similar assemblies.

Cost Per Unit: $91,084.60

Competition Analysis

Competition Level: sole-source

This contract was not competed, meaning there was no open bidding process. This limits price discovery and may result in higher costs for the government compared to a competitive award.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible price for these wired housing assemblies.

Public Impact

Military readiness may depend on the availability and cost-effectiveness of these specialized housing assemblies. The significant contract value highlights the importance of efficient procurement in the defense sector. Lack of competition could set a precedent for future sole-source awards in this category.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High per-unit cost
Potential for sole-source creep

Positive Signals

Award to established vendor
Firm Fixed Price contract type

Sector Analysis

This award falls under the Miscellaneous Manufacturing sector, which encompasses a wide range of products not classified elsewhere. Defense spending in this area often involves specialized components critical for military operations.

Small Business Impact

The contract was awarded to DRS Network & Imaging Systems LLC, a single entity. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency. Oversight would typically involve monitoring contract performance, delivery schedules, and adherence to terms. The lack of competition warrants closer scrutiny.

Related Government Programs

All Other Miscellaneous Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award
Lack of competitive bidding
High per-unit cost
Potential for cost overruns if option is exercised without review

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to DRS NETWORK & IMAGING SYSTEMS LLC. AWARDED 25 JUL 16 TO DRS NETWORK&IMAGINING SYSTEMS, LLC FOR 250 EA WIRED HOUSING ASSEMBLIES, NSN 855-01-588-5668, WITH 100% OPTION.

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2016-07-25. End: 2018-12-15.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. A formal justification for this sole-source award would typically be documented by the agency, outlining reasons such as urgency, unique capabilities of the vendor, or lack of viable alternatives. Without this documentation, it's difficult to assess the necessity of bypassing the competitive process.

How does the per-unit cost compare to similar wired housing assemblies in the market?

The per-unit cost is approximately $91,084.60 ($22,771,192.50 / 250 units). Without access to market research or data on comparable NSNs, it is challenging to definitively benchmark this price. However, this figure appears substantial and warrants further investigation against industry standards for similar electronic or housing components.

What is the potential impact of the 100% option on future spending and competition?

A 100% option allows the government to purchase an additional quantity of the same item under the same terms and conditions. This significantly increases the potential total contract value and locks in the current vendor, further reducing opportunities for future competition on this specific requirement.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRDL115R0213

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,771,193

Exercised Options: $22,771,193

Current Obligation: $22,771,193

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $21,461,406

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline