DoD Awards $32M for Circuit Boards to DRS Network & Imaging Systems LLC
Contract Overview
Contract Amount: $32,045,860 ($32.0M)
Contractor: DRS Network & Imaging Systems LLC
Awarding Agency: Department of Defense
Start Date: 2024-03-27
End Date: 2027-10-31
Contract Duration: 1,313 days
Daily Burn Rate: $24.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UCA FOR DVDB ADD TO CONTRACT
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32935
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $32.0 million to DRS NETWORK & IMAGING SYSTEMS LLC for work described as: UCA FOR DVDB ADD TO CONTRACT Key points: 1. Significant award to a single vendor for specialized circuit boards. 2. Lack of competition raises questions about price discovery. 3. Potential risk associated with sole-source procurement for critical components. 4. Sector focus on manufacturing for defense applications.
Value Assessment
Rating: questionable
The award amount of $32,045,860 for bare printed circuit boards is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to market rates for similar components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices due to the absence of market pressure to offer the best value.
Taxpayer Impact: Taxpayer funds may be at risk of being overspent due to the lack of competitive bidding, potentially leading to a less efficient use of resources.
Public Impact
Ensures supply of critical bare printed circuit boards for defense systems. Potential for increased costs to taxpayers due to non-competitive award. Highlights reliance on specific vendors for specialized manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of price competition
- Long contract duration
Positive Signals
- Ensures supply of critical components
- Firm fixed price contract
Sector Analysis
This award falls within the manufacturing sector, specifically for electronic components crucial to defense systems. Benchmarks for bare printed circuit board manufacturing can vary widely based on complexity and volume.
Small Business Impact
The data indicates this award was not set aside for small businesses and the vendor, DRS Network & Imaging Systems LLC, is likely a large business. There is no indication of small business participation in this specific contract.
Oversight & Accountability
The Defense Logistics Agency is responsible for this award. Oversight should focus on ensuring the necessity of sole-source procurement and validating the reasonableness of the price paid.
Related Government Programs
- Bare Printed Circuit Board Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Long-term dependency on a single supplier
- Limited transparency in price determination
Tags
bare-printed-circuit-board-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.0 million to DRS NETWORK & IMAGING SYSTEMS LLC. UCA FOR DVDB ADD TO CONTRACT
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 $32.0 million.
What is the period of performance?
Start: 2024-03-27. End: 2027-10-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for sole-source procurement typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet requirements. The Defense Logistics Agency should have conducted a price analysis, potentially using historical data, cost breakdowns, or market research, to validate the reasonableness of the firm fixed price before award.
What are the risks associated with relying on a single supplier for these critical bare printed circuit boards, especially given the long contract duration?
The primary risks include supply chain disruptions if the sole-source vendor faces production issues, potential price escalations in future modifications or renewals, and a lack of incentive for the vendor to innovate or improve efficiency. The long duration (ending 2027) exacerbates these risks by extending the period of dependency.
How does the firm fixed price structure impact the government's ability to manage costs and ensure value for money in this sole-source scenario?
A firm fixed price contract shifts most of the risk to the contractor, which can be beneficial for the government by providing cost certainty. However, in a sole-source situation, the 'fixed' price might be higher than it would be under competition. The government's ability to ensure value relies heavily on the accuracy of the initial price negotiation and the contractor's efficiency.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Bare Printed Circuit Board Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA
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: $32,045,860
Exercised Options: $32,045,860
Current Obligation: $32,045,860
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $14,953,561
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRRA220D0012
IDV Type: IDC
Timeline
Start Date: 2024-03-27
Current End Date: 2027-10-31
Potential End Date: 2027-10-31 12:10:00
Last Modified: 2025-12-19
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